A survey by Kreston Menon reveals that UAE companies are eyeing expansion opportunities in Western Europe, the Middle East, and North American countries this year. The study indicates that 62% of UAE businesses are inclined to expand into the UK, Germany, France, and other Western European nations, while 54% plan to venture into Middle Eastern countries in 2024. Other preferred regions for global expansion include Northern America, North Asia, and South Asia.
Sudhir Kumar, Senior Partner and Head of Corporate Communications at Kreston Menon, notes that market volatility, identifying the right business partner, and talent acquisition are the primary challenges for UAE entrepreneurs in international expansion. Kumar highlights that many governments have established special teams to assist international investors, facilitating smoother business expansion plans.
He also points out that UAE companies are keen on global expansion, with strong trading ties to North America, as evidenced by 44% considering expansion there. Key factors attracting UAE businesses to invest abroad include government support, skilled talent, favorable trade agreements, technological infrastructure, digitalization, future economic growth prospects, alignment with long-term growth strategies, favorable tax policies, and regulatory transparency.
UAE respondents prioritize government support highly in their expansion considerations, placing less importance on cultural and language similarities to existing operations. The focus on future economic growth underscores a forward-thinking mindset, with a strategic emphasis on leveraging local talent and welcoming skilled immigration to drive innovation and competitiveness.
Challenges faced by UAE businesses in entering new markets include managing economic volatility, adapting logistics and supply chain issues, and finding suitable local partners.
