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kreston Global Global Business Trends: Do UAE Business Leaders Believe More Business will Expand Overseas in the Next 12 Months?
Overseas business expansion is widely expected to Increase
| Significantly increase | 54% |
| Moderately increase | 39% |
| No change | 6% |
| Moderately decrease | 1% |
| Significantly decrease | 0% |
| Not sure | 0% |
At 93%, the UAE is one of the most optimistic countries in the world that global expansion is on the rise.
“The UAE Interpreneur report is precise and will be valuable for any investor. In the UAE, all foreign Governments are actively partnering with the UAE government to attract and bring in foreign direct investments as Government support is key in expanding operations. Every Diplomatic Mission in UAE has set up their separate Trade Offices to attract UAE interpreneurs. And the investor numbers increasing regularly. New areas and sectors for investments are discussed and planned. The main challenges for UAE Interpreneurs for international expansion are market volatility, right business partner and talent. Most of the Governments have formed special Teams to handle international investors and that Team relates with the Trade Offices in UAE. This helps the Interpreneurs expansion plans go seamless. A trusted and knowledgeable advisor is what all interpreneurs look for to take them through the process.”
Sudhir Kumar
Senior Partner & Head-Corporate Communications
Kreston Menon
Which Markets Do UAE Businesses Prefer to Expand into?
Which, if any, of the following regions or countries would you / your business considering expanding to? (Select all that apply)
| Western Europe (e.g. Germany, France, UK, etc) | 62% |
| Middle East | 54% |
| North America (e.g. USA, Canada, Mexico, etc) | 44% |
| North Asia (e.g. China, Japan, Korea, etc) | 34% |
| Eastern Europe (e.g. Poland, Hungary, Romania, etc) | 28% |
| South Asia (e.g. Thailand, Vietnam, Singapore, etc) | 24% |
| Africa | 24% |
| South America (e.g. Brazil, Chile, Colombia, etc) | 19% |
| Australia/New Zealand | 13% |
| Other | 2% |
What Makes a Country More Attractive to UAE Businesses Looking to Expand Globally?
Which, if any, of the following would make a country most attractive for international expansion? [Select up to five]
| Government support (e.g. grants, incubators, and mentorship programs) | 49% |
| Skills and talent (e.g. availability of local talent and openness to skilled talent immigration) | 45% |
| Favorable trade agreements (e.g. free trade zones, diplomatic partnerships, or preferential tariff treatment) | 42% |
| Tech infrastructure and digitalisation | 42% |
| Future economic growth prospects | 39% |
| Alignment with long-term growth strategy (e.g. regional investment into specific industries) | 39% |
| Favorable tax policies | 33% |
| Transparent regulatory environment | 31% |
| Geographic proximity to existing operations | 24% |
| Cultural and language similarity to existing operations | 23% |
What Motivates UAE Interpreneurs to Expand Internationally?
Half of UAE businesses are driven to expand internationally by market growth opportunities. Meanwhile, 43% aim to outpace rivals by securing new market footholds, and 38% are motivated by access to cutting-edge digital technologies and innovation.
What are the biggest international expansion challenges in 2024 according to UAE interpreneurs?
Top 3 biggest challenges during international expansion process
| Managing economic volatility (e.g. currency fluctuations, inflation and or low growth) | 46% |
| Adapting logistics and supply chain issues (e.g. managing international shipping, distribution, and communication) | 43% |
| Finding the right local partners (e.g. building reliable and trustworthy relationships) | 39% |
Risk: What do UAE CEOs Think are the Biggest Risks to Global Business Expansion in 2024?
How much of a risk do the following pose to your business’s international expansion or planned international expansion?
| Escalating geopolitical tensions and instability | Disruptive risk | 6% |
| Significant risk | 36% | |
| Moderate risk | 29% | |
| Minimal risk | 17% | |
| No risk | 10% | |
| Not Sure / Not applicable | 2% | |
| Economic slowdown or recession | Disruptive risk | 17% |
| Significant risk | 25% | |
| Moderate risk | 26% | |
| Minimal risk | 21% | |
| No risk | 10% | |
| Not Sure / Not applicable | 1% | |
| Financial market and foreign exchange volatility | Disruptive risk | 11% |
| Significant risk | 33% | |
| Moderate risk | 26% | |
| Minimal risk | 19% | |
| No risk | 11% | |
| Not Sure / Not applicable | 0% | |
| Cybersecurity threats and data breaches | Disruptive risk | 8% |
| Significant risk | 27% | |
| Moderate risk | 33% | |
| Minimal risk | 17% | |
| No risk | 12% | |
| Not Sure / Not applicable | 3% | |
| Talent shortages and skilled labour gaps | Disruptive risk | 7% |
| Significant risk | 25% | |
| Moderate risk | 30% | |
| Minimal risk | 22% | |
| No risk | 16% | |
| Not Sure / Not applicable | 0% | |
| Technological disruption from AI and new technologies | Disruptive risk | 6% |
| Significant risk | 23% | |
| Moderate risk | 25% | |
| Minimal risk | 24% | |
| No risk | 22% | |
| Not Sure / Not applicable | 0% | |
| Environmental disruption and extreme weather | Disruptive risk | 8% |
| Significant risk | 27% | |
| Moderate risk | 32% | |
| Minimal risk | 19% | |
| No risk | 13% | |
| Not Sure / Not applicable | 1% |
Private Equity vs Venture Capital: Which is the Preferred International Expansion Funding Source for UAE Businesses?
| Private investors (including HNWIs) | 52% |
| Venture capital or private equity | 47% |
| Capital markets (i.e. IPO) | 39% |
| Employee equity schemes | 39% |
| Government funding | 36% |
| Management buyout | 36% |
| Crowdfunding | 34% |
| Debt | 55% |
| None of the above | 0% |
Understanding Global Tax: Is the C-Suite Ready for a Global Tax Threshold?
How confident are you in your understanding of the global international tax rules (for example transfer pricing, VAT) that govern multinational businesses?
| Extremely confident: I have a deep understanding of global tax rules and their implications for multinational businesses | 43% |
| Confident: I have a good grasp of key principles and can navigate common scenarios, but may seek external guidance for complex situations | 49% |
| Not very confident: My understanding of global tax rules is limited, and I rely heavily on external advisors for guidance and analysis | 8% |
The Growing Importance of ESG for UAE Investors and Interpreneurs
| We do / would prioritise ESG | 42% |
| We do / would value ESG, but it wouldn’t be our top priority | 35% |
| We do / would consider ESG practices but if only if they don’t interfere with our other priorities | 20% |
| We don’t / wouldn’t strongly consider ESG practices | 2% |
| We don’t / wouldn’t consider ESG practices at all | 1% |
| Not sure | 0% |
The Benefits of AI in International Business Operations
To what extent do you agree or disagree with the following statement: ‘I feel prepared to harness the benefits of AI in global business operations within the next two years?
| Strongly agree | 60% |
| Somewhat agree | 34% |
| Neither agree nor disagree | 5% |
| Somewhat disagree | 1% |
