The Biggest Myths About Doing Business in the UAE

Navigating Legal Landscapes in Middle Eastern-European Business

The UAE is a magnet for entrepreneurs, investors, and businesses of all sizes. Despite its strong reputation, many myths persist about what it’s really like to do business here. Let’s clear up some of the most common misconceptions with a more human, straightforward approach.

1. “You Need a Local Partner for Every Business”

This was true for years, but things have changed. Today, many sectors allow 100% foreign ownership. Free zones have always offered this, and now, thanks to legal reforms, even some mainland businesses can skip the local partner requirement. If you’re starting a tech company or a consulting firm, you can own it entirely and stay in control of your vision.

Clotilde Iaia Polak, Founder of Yungo Law, explains: “One of the biggest ‘aha’ moments for clients is when they realise they can own 100% of their business. We walk them through the process, from legal structure to licensing, so they feel confident and in control.”

Expanding a business can feel daunting without the right information. We help clients break down the requirements, from documentation to choosing the right business model, ensuring a smoother journey.

2. “The UAE is Just About Oil”

Oil helped build the UAE’s foundation, but today the economy is driven by tourism, technology, logistics, and renewable energy. Stroll through Dubai now, and you’re more likely to meet a fintech founder or a logistics expert than someone in oil and gas. Dubai alone gets less than 1% of its GDP from oil, which shows how much things have evolved.

“The UAE’s economy has completely transformed. We’re seeing businesses thrive in tech, healthcare, and logistics. It’s exciting to help clients tap into these new opportunities.” – Clotilde Iaia Polak, Founder, Yungo Law

Tech startups, renewable energy firms, and digital service companies are thriving in the UAE. If you’re considering joining them, it’s worth exploring the vast opportunities beyond the oil industry.

3. “Business Regulations Are Too Complicated”

Yes, there are rules. But the UAE has made it easy for businesses to get started. Free zones act as one-stop shops, helping you organise licenses, visas, and permits in just a few steps. Government portals and digital services mean much of the paperwork can be done online.

According to Clotilde Iaia Polak, “Every jurisdiction has its quirks, but the UAE’s business setup process is incredibly efficient if you know the steps. We make sure clients have a clear roadmap, so nothing catches them off guard.”

That said, navigating the nuances of different free zones can be complex. Each has its own regulations, costs, and benefits. This is where expert advice can help steer you in the right direction.

4. “Cultural Differences Make Business Tricky”

With over 200 nationalities living and working here, the UAE is a global business hub. English is the main language in business, and the professional culture feels familiar to anyone with international experience. While it’s essential to respect traditions, the UAE is built to welcome and support international collaboration.

“We often tell clients that understanding culture is about more than etiquette. It’s about knowing how decisions are made and relationships built. In the UAE, trust and connection go a long way.” – Clotilde Iaia Polak, Founder, Yungo Law

Cultural awareness is important, but it doesn’t need to be overwhelming. The UAE’s business culture is welcoming, and the emphasis is on respectful, results-driven collaboration.

5. “You Can Only Do Business in Dubai”

Dubai may get the headlines, but it’s only one part of the picture. Abu Dhabi excels in finance and energy, Sharjah is gaining recognition in manufacturing and the arts, and Ras Al Khaimah attracts industrial businesses with smart incentives. The UAE has a diverse range of opportunities across its different emirates.

“Clients are often surprised by what’s available beyond Dubai. For example, Ras Al Khaimah is fantastic for manufacturers looking for cost-effective industrial facilities.” – Clotilde Iaia Polak, Founder, Yungo Law

Each emirate offers unique incentives and caters to different industries. Understanding these differences can help businesses choose the best location for their goals.

6. “Setting Up a Business Takes Too Long”

The UAE has simplified the process of starting a business. In many free zones, you can go from submitting your paperwork to running operations within a few days. With the right preparation, setting up here is often straightforward. With clear, practical guidance on business structures and regulations, success is within reach.

“We’ve seen clients go from decision to launch in under a week. It’s all about knowing the requirements upfront and having the right support.” – Clotilde Iaia Polak, Founder, Yungo Law

The timeline varies depending on the business activity and jurisdiction, but efficiency remains a hallmark of the UAE’s business-friendly policies.

7. “The Tax-Free Advantage Has Disappeared”

While a 9% corporate tax now applies to certain businesses, personal income remains tax-free. Many free zones also offer tax exemptions for companies that meet specific criteria. Compared to most international business hubs, the UAE remains a tax-friendly destination.

“The UAE’s tax framework remains highly competitive. We help businesses understand the fine print, so they make smart, strategic decisions.” – Clotilde Iaia Polak, Founder, Yungo Law

Understanding how these rules apply to your business can open up potential tax benefits, especially for free-zone-based companies.

Making Business Simple with the Right Support

The UAE is full of opportunity, but it helps to have expert guidance. That’s where Yungo Law comes in.

We’ve helped solo entrepreneurs and international companies alike successfully launch and grow in the UAE. Our advice is practical and straightforward—just clear, useful insights to help you stay compliant and confident.

From choosing the right legal structure to securing the necessary permits, we provide hands-on support throughout the process.

Ready to Get Started?

Let’s talk. We’ll have a genuine conversation about your business plans and how we can support you.

Get in touch with Yungo Law today and tell us what you have in mind. We’ll help you plan the best way forward.

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