United arab emirates Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in united arab emirates, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
Select Country Guide
Market Challenges
Last published date:

The UAE is a premier business hub and open market in the Middle East, yet there are challenges facing exporters and foreign companies doing business in the UAE. Many challenges are covered in more detail in later chapters.
Challenges include: 

  • Scams and frauds frequently target foreign companies, especially small and medium-sized enterprises.
  • Payment delays and issues.
  • Non-transparent tendering processes.
  • New laws and regulations announced without an opportunity for public comment or industry consultation on the drafts.
  • Lack of a unified government tender online platform.
  • Problematic commercial agent agreement termination rules.
  • Lengthy and complicated dispute resolution processes.
  • Localization and national workforce development requirements.
  • Inconsistencies and coordination across the seven emirates as well as between federal and emirate-level regulatory bodies.

Delayed Payments

Late payments are an ongoing challenge, especially in public-sector procurements. Companies that have significant experience with government procurement report that they have carried government receivables for years. U.S. companies should be sure to conduct due diligence, carefully consider payment terms, and take advantage of resources to include the U.S. Export-Import Bank, letters of credit, or payment before shipment. U.S. companies may contact the U.S. Commercial Service if payment delays persist. 

Scams, Fraud, and Unsolicited Offers 

Scams and fraud are an ongoing challenge. Scams and fraud frequently target foreign companies, especially small- and medium-sized enterprises. Due diligence is crucial. U.S. companies should be wary of unverified entities promising lucrative business deals and should never send money without conducting due diligence. If you receive an unsolicited offer, be especially wary. U.S. companies may contact the U.S. Commercial Service, especially if a suspicious unsolicited offer is received. An International Company Profile due diligence service is also available.

×

Global Business Navigator Chatbot Beta

Welcome to the Global Business Navigator, an artificial intelligence (AI) Chatbot from the International Trade Administration (ITA). This tool, currently in beta version testing, is designed to provide general information on the exporting process and the resources available to assist new and experienced U.S. exporters. The Chatbot, developed using Microsoft’s Azure AI services, is trained on ITA’s export-related content and aims to quickly get users the information they need. The Chatbot is intended to make the benefits of exporting more accessible by understanding non-expert language, idiomatic expressions, and foreign languages.

Limitations

As a beta product, the Chatbot is currently being tested and its responses may occasionally produce inaccurate or incomplete information. The Chatbot is trained to decline out of scope or inappropriate requests. The Chatbot’s knowledge is limited to the public information on the Export Solutions web pages of Trade.gov, which covers a wide range of topics on exporting. While it cannot provide responses specific to a company’s product or a specific foreign market, its reference pages will guide you to other relevant government resources and market research. Always double-check the Chatbot’s responses using the provided references or by visiting the Export Solutions web pages on Trade.gov. Do not use its responses as legal or professional advice. Inaccurate advice from the Chatbot would not be a defense to violating any export rules or regulations.

Privacy

The Chatbot does not collect information about users and does not use the contents of users’ chat history to learn new information. All feedback is anonymous. Please do not enter personally identifiable information (PII), sensitive, or proprietary information into the Chatbot. Your conversations will not be connected to other interactions or accounts with ITA. Conversations with the Chatbot may be reviewed to help ITA improve the tool and address harmful, illegal, or otherwise inappropriate questions.

Translation

The Chatbot supports a wide range of languages. Because the Chatbot is trained in English and responses are translated, you should verify the translation. For example, the Chatbot may have difficulty with acronyms, abbreviations, and nuances in a language other than English.

Privacy Program | Information Quality Guidelines | Accessibility