26 minute read
EXPERT EYE
Opening up the UAE
Tom Keya, executive of legal consultants Ruthberg LLC and founder of mental health platform Soulh, details how companies can successfully expand into the UAE
Written by: Tom Keya
The UAE is a modern economic marvel and one of the biggest success stories of the 21st century. Starting as an unspectacular port town, Dubai has grown into one of the most attractive locations in the world. Most important, however, is how the openness and ease of doing business that the UAE offers have turned it into an economic powerhouse. With a GDP of over $400 billion and ambitious plans to grow and diversify its economy, it’s little wonder Dubai, and the UAE in general, is such a compelling prospect for businesses looking to expand into the Middle East.
Economic Opportunities and Emerging Markets in the UAE
With a strong economy, excellent infrastructure, and transportation links, the UAE is widely regarded as a desirable location to conduct business.
However, like many countries, the UAE suffered a deep recession due to the COVID-19 pandemic. This economic trajectory was largely caused by downturns in vital sectors like tourism and oil. Fortunately, tourism is recovering slowly, while oil prices are soaring. However, it’s the UAE’s commitment to less oil dependence that offers companies the
best expansion opportunities.
Most notably, the government announced a series of initiatives, to coincide with the nation’s 50th
birthday. These initiatives are designed to help the UAE become a global player across industries as varied as robotics, healthcare, finance, and information technologies.
E-commerce is an example of an industry the UAE is attempting to develop rapidly. To that end, the government has created free trade zones dedicated to e-commerce in the Middle East and North Africa (MENA). These contain specific infrastructures, such as e-commerce logistics units, multi-client warehouses, and end-toend warehousing services like order management systems.
Similarly, the UAE has moved quickly to set up a regulatory framework for companies in Blockchain, crypto, and in the DeFi space. This will help attract talent and companies in the industry and encourage them to set up business in specially designed free trade zones.
Opening an Office in the UAE: Free Trade Zone or Mainland?
When expanding into the UAE, one of the most important decisions – if not the most important – is deciding
between a free trade zone (FTZ) or the mainland. Knowing the differences between the two and matching them to the needs of your business is crucial for avoiding challenges down the line.
Opening an Office in a Free Trade Zone
Setting up a branch in an FTZ allows foreign companies to retain 100 percent ownership of their business. There are over 45 free trade zones across the UAE, with more than 30 of them located in Dubai. Opening a business in one of the free trade zones is designed to be straightforward – as a way of attracting foreign investment. Each FTZ is different: with specific zones best suited to particular business activities. Subsequently, each FTZ has different exact requirements on how to legally set up an office or branch.
Taking all this into account, you need to consider several factors when deciding the best free trade zone to establish an office in. This includes: • Business activity • Need for physical space needs, i.e., offices, warehouses, etc. • Number of employees: i.e., how many visas you’ll need to apply for • Do you need to be near a port or airport?
Once you’ve decided on the right free trade zone, the process for opening a business is as follows:
• Pick a Legal Structure for the
Business
In an FTZ, your business can be: – Free Zone Limited Liability or
Free Zone Company – Free Zone Establishment
The main difference is the number of shareholders. But not every free zone allows both structures, so research each structure carefully.
• Select a Trading Name
Your company name has to meet a few requirements, such as not featuring “Dubai” or “United Arab
ECONOMIC AND LEGAL CHALLENGES OF EXPANDING INTO THE UAE
As lucrative as expanding into the UAE is, it’s not without its challenges. Without doing their due diligence and, more importantly, seeking assistance in setting up offices and subsidiaries, unsuspecting companies can find themselves in over their heads. Economic and legal roadblocks include:
CHOOSING THE WRONG LOCATION
Business owners fail to do enough research, so misunderstand the implications of setting up on the mainland or in an FTZ.
CHOOSING THE WRONG FTZ
Similarly, businesses choose to set up offices in an FTZ that doesn’t fully cater to the requirements of the business.
FAILING TO PROPERLY UNDERSTAND THE COMPANY’S OBLIGATIONS AND RUNNING COSTS
Both the mainland and FTZs, as well as individual FTZs, have their own set of obligations and, consequently, running costs. Improperly calculating these costs can add up in the long run.
WRONG SHAREHOLDER STRUCTURE
The overall cost of your business structure will be determined by the shareholder structure. The shareholding structure then goes on to impact the operating and decision-making efficiency of the company.
MISUNDERSTANDING LOCAL LAWS AND REGULATIONS
Because of its rapidly developing economy, regulations in the UAE can evolve quickly, so keeping up to date is crucial.
Emirates” and not referencing any religious names or iconography.
• Apply for a Business Licence
Depending on the planned activity of your business and your business offering, you may be required to apply for multiple business licenses.
• Choose Office Space
The specifics will depend on how many employees you aim to employ and your proposed business activities.
• Register Your Business and Obtain
Licences
Submitting all relevant forms, licences, financial reports, legal documentation etc, and paying all relevant registration and licence fees to the appropriate free trade zone authorities.
• Begin the Visa Application Process for Your Employees
With your business registered, it’s now time to start getting your staff up and running.
Opening an Office on Mainland Dubai
The process of opening a business on the Dubai mainland shares many of the same administrative steps as opening a business in an FTZ. The main difference is having to find a local Emirati sponsor. Additionally, your Emirati partner will have to retain a 51 percent ownership stake in your business.
Now, while this is a significant extra step and transforms the entire shareholder structure within your business, this does pose a few advantages. Firstly, you’ll have fewer restrictions on how and where you operate; you won’t be bound by the regulations of your FTZ and the licenses you hold. Secondly, there’s no limit to the number of staff visas you can apply for.
Living considerations for staff relocating to UAE
Once the paperwork for your business has been submitted and approved, it’s time to arrange visas for your staff. If opening a business in a free trade zone, you’ll be assigned a quota of working visas for your employees. This quota depends on the FTZ, the size of your office space, and your registered business activities.
First, each employee must apply for an employment entry visa. When they have that, they can apply for an Emirates ID card (resident identity card), and then they’ll receive their residence visa and work permit.
However, as well as the visa application process, each employee coming to work in UAE will have to go through a short process of cultural assimilation. For your staff to be successful in the UAE, they must learn and respect cultural norms, public holidays, and religious festivals.
ABOUT THE EXPERT
A business development strategist and mental health advocate, Tom Keya currently works and lives in Dubai, UAE. Tom is the Founder of Soulh – a wellness company focusing on tech and supplements to help mental health in the workplace. As well as philanthropic and strategic work in this sector, Tom also regularly writes for various online publications on mental health in the workplace and a number of other topics.
WORK IN THE ERA OF EMPATHY
We attend the ‘Managing the Transformation of/at Work’ panel event, as UK business leaders discuss how to navigate the new era of work
Writer: Phoebe Harper
The future of work has arrived.
This is the opening sentiment expressed by work futurist and author Sophie Wade, at the ‘Managing the Transformation of/at Work’ panel held in London earlier this month. The event coincides with the launch of Wade’s latest title, ‘Empathy Works: The Key to Competitive Advantage in the New Era of Work’.
As Wade observes, due to the unforeseen disruption of the COVID19 pandemic, we have all been masked (literally) to the transformation taking place within the workspace and must now confront how best to proceed in these uncertain waters.
She is joined in discussion by four other panellists; Managing Partner of business management consultancy firm OE CAM, Martyn Sakol, FinTech specialist and Founder/CEO of KoreLabs Sabrina Del Prete, CEO of Potentialife and expert in positive leadership Angus Ridgway, and finally Haddy Davies – CEng MIChemE and Direct Materials Technical Process Lead at Johnson Matthey’s.
With varying backgrounds and specialities, and suitably different standpoints on the efficacy of remote working, the assembly presents a diverse range of perspectives for discussion. Core issues are debated across the panel, all of which are top of mind for business leaders spanning all sectors and geographies in the wake of COVID-19.
Above all, the panel unpacks the question of how we can transform our businesses and engage and retain the talent needed to achieve sustainable growth in the new era of work.
TECH DRIVING POSITIVE CHANGE
For Ridgway, tech-enabled positive changes have risen to the fore. As concurred by Del Prete, after a significant background in the financial realm, most recently in FinTech, she unpicks the ‘red herring’ behind digital transformation. “It has never been about the tech, but rather about the people,” she observes.
The question of tech-enabled innovation raises the need for advanced motor skill training that will demand both significant time and investment – this is particularly
relevant to factory floor shift workers, who are often overlooked in such debates concerning hybrid working, since a physical work presence is typically demanded. “We need to speak into that space and acknowledge the lived experience of people,” says Davies.
This becomes most apparent as Haddy Davies highlights her personal experience, as a wife and mother first and foremost, but also as a highly qualified chemical engineer. As someone whose work necessitates presence in the workspace, the quandary of being forced to adjust to remote working whilst continuing home life became obvious in the early days of the pandemic.
“Building, designing and scaling machines can’t be done remotely. The journey of transition lasted several months,” she reflects.
COVID-19 has been an undeniable accelerator to the future of work. For Del Prete, the pandemic has catalysed the company to jump 10 years ahead. This is widely defined as a technologydriven business environment, that is fast-paced and far from predictable.
LEVELLING THE PLAYING FIELD
This introduces the question of the fairness of home working, and it is a topic that is continually returned to when considering the imbalance of everyone’s circumstances and obligations at home – from childcare responsibilities to the simple hurdle of having poor internet connection.
Yet the benefits soon become apparent.
For Del Prete, an obvious silver-lining was the simple money-saving aspect of not having to occupy a physical office space. Working remotely is not an issue when output is the main focus of everyone’s workload, and in her case, this even had the effect of sharpening perspectives on what needed to be done. As a business leader, she acknowledges, “we are exploring a new reality, and we are all making mistakes. But my job is to move with the times.”
– MARTYN SAKOL, MANAGING PARTNER OF BUSINESS MANAGEMENT CONSULTANCY FIRM OE CAM
However, all panellists reinforce the notion that remote working is not a one-size-fits all option. Sakol is quick to hazard that companies must not “sleepwalk” into the hybrid model, based on the experience encountered through his clients. Adding to the roster of potential issues, he includes discrimination and exclusion between office workers and those who are remote, such as missing out on key discussions outside of meetings, not to mention the interpersonal elements of an office environment that are so stimulating for us all as social beings.
The event itself serves as the ultimate reminder of personal connection, as a relatively recent example of B2B leaders being able to gather in person.
Ridgway goes on to highlight the gender diversity that benefits from a structured environment such as an office, where women generally are freed from the expectations of traditional gender roles that may be experienced in the home. On the other hand, the matter of people of colour is also raised, who have enjoyed the working from home experience for the freedom from ‘micro-aggressions’ that are often encountered in the
workplace which has been widely reported on. This also applies to the comfort levels of those with disabilities having to commute to an office environment where the levels of accessibility may not be as facilitating as they are at home.
“In this brave new world, we have to think of psychological safety. There is no level playing field out of the office,” says Sakol. This statement is immediately countered by Wade, who argues that even in the office, it has never been a level playing field, and that through the pandemic, the glimpses into people’s personal lives opened a window for empathy.
UNLEASHING PURPOSE
In terms of talent management and future growth, the question of focusing on performance as opposed to presence, is a matter of mutual consensus.
Regardless of the working situation, inclusion and empathy are critical fundamentals – whether entirely remote, office-based, or hybrid.
The term ‘hybrid’ itself poses a problem, identified by Ridgway as a “sterile compromise”. Whilst companies explore this unprecedented degree of freedom, it must be a conversation of office functionality - “we need to ask, what is the value proposition of the office?
“We must think of functionality, rather than location,” he adds.
The question of how well senior teams across companies are adapting to new business conditions comes under scrutiny, as does confidence in middle management’s capabilities to engage their teams to meet with customers’ new and changing demands.
This all comes against the unignorable backdrop of ‘The Great Resignation’ - the undeniable proof of the struggle many companies are facing in adapting to this new age. Wade raises the game of “musical chairs” that is currently taking place across industries, as employees hop between companies. She cites the statistic that 48 million people across the US resigned last year alone – so how can employers change the game?
Within this context, Del Prete highlights her mentorship work with younger people, identifying how today, Gen Z are far clearer about their own ambitions. “Success is now measured in a different way. They
– FINTECH SPECIALIST AND FOUNDER/CEO OF KORELABS, SABRINA DEL PRETE
question how opportunities can fit for them, and how far their money can go before they have to compromise.”
Burnout is the buzzword underlining this entire movement, as employees find themselves overworked and questioning their own sense of purpose.
“Companies must now face the burden of communicating and connecting to purpose,” states Ridgway.
“We have to articulate purpose – live it and feel it, so people know the answer when they ask themselves, “why am I getting up today to do this work?””, Del Prete explains.
Articulating the ‘end-vision’ of why people are doing what they’re doing, whether working in office pods, or in their own front room, is the essential tool of connection and employee retention.
Aside from the communication of purpose as a key means to overcome this – identified by Del Prete as “the secret weapon”- reinforcing culture is also imperative.
“Leaning into culture connects people wherever they are,” says Wade.
AN EMPATHETIC FUTURE
Regardless of individual views on the practicalities of the new ways of working, one theme unites all speakers - the necessity of empathy and the enforcement of an individualised approach when leading employees into the future of the workplace.
The etiquette of remote working remains to be established in order to cement boundaries that have become hazy through a work-life balance where home is increasingly becoming the workspace, as Ridgway advocates for the “protective boundaries” that are yet to be finalised.
Sakol confirms that business leaders must master navigating ambiguity, with empathy as the basis of strong leadership. Indeed, it is this concept that must be introduced as a new corporate value.
Gone are the days of a traditional Taylorist working environment, as structures everywhere are now being questioned and re-examined. Structure is inevitably linked to purpose, and structural change invites positive leadership.
“There are ways to have form without fluidity,” says Wade.
In an age that has become defined by different expectations of both life and employment, companies must address the question of how to combine the needs of the individual with the larger objective of the firm. As Ridgway argues, connection is the new process that must be advanced.
Wade draws the animated discussion to a close by reflecting on this continued period of inflection, as internal and external tensions drive transition. “Empathy is the ingredient to achieve sustainable competitive advantage.”
The management and motivation of employees must be enhanced and improved now more than ever before. For anyone who is a member or leader of a workplace, we are all part of this evolutionary journey, and such discussions can only be expected to continue as we forge a new way forward, together.
FALCONS
FLY HIGH
Launch day is an integral part of our season. This is an opportunity to say thank you to our sponsors and engage with the local community.”
On Tuesday 26th April, the RAF Falcons, widely recognised as the UK’s premier military parachute display team, officially began their 2022 season in spectacular style.
For Flight Lieutenant Stuart Philpott, Officer Commanding of the RAF Falcons Parachute Display Team, the launch could not have gone any better.
On a perfect day for parachuting against the bright blue Oxfordshire skies, we took our place amongst a crowd thrilled by the flying Falcons. Combined with the use of the Chinook, regarded by many as the world’s most iconic helicopter, we got to see the very best of the RAF Falcons.
Up at the crack of dawn, we made the three-hour journey from Norfolk to the Falcons’ home base at RAF Brize Norton, to be greeted by the team (as well as some much-needed teas and coffees) upon arrival.
Remarkably unphased by the descent they would soon be undertaking, the Falcons stood out as a very relaxed, welcoming and approachable team, engaging with ourselves and the fellow sponsors in attendance.
We attend the launch of the RAF Falcons’ 2022 season, which opened with a dazzling display at RAF Brize Norton
PARACHUTING PIONEERS
Photos taken with the team were followed by a presentation led by Flight Lieutenant Mike Reeve, who began by providing a brief history of the RAF Falcons. We had the honour of being joined at the launch by the family of the late, great Peter Hearn, one of the six founding members of the team.
“Peter saw an opportunity for parachute displays to be utilised as a military showpiece, and was part of ‘The Big 6’ which eventually became the RAF Falcons in 1965,” Reeve told us.
“They were the pioneers of display parachuting and the first parachute display team in the UK, and from there displayed all over the country and the world.”
Reeve also informed us of the Falcons’ brand-new display, one that captivates the military precision and skill of the team and demonstrates the ever-changing skill sets required for military parachuting, whetting the room’s appetite for the launch display that was to come later in the day.
“This season is looking epic – the predicted number of people the Falcons will be displaying to this season is up to two million across all the shows!” he smiled.
A short, scenic walk away from the lecture theatre was the Airborne Delivery Wing, a Royal Air Force training unit that provides parachute training to all three British Armed Forces, where Warrant Officer Paul Floyd walked and talked us through the impressive facility.
Knowledge dispels fear in the Airborne Delivery Wing, and Floyd equipped us with a thorough understanding of all things parachutes and parachute training.
Complete with a virtual reality (VR) parachute trainer, the Falcons
also utilise digital imagery to create a virtual world and train service personnel. As impressively demonstrated to us, the parachuters are suspended by harnesses and wear VR goggles, to practice jumps in a range of realistic, immersive environments.
“It’s about making sure everyone is good to go before they begin a parachute descent. The VR gives everything needed to instil the required drills and procedures,” Floyd explained.
BRAND-NEW DISPLAY
Just shy of midday, it was time for local schools, sponsors and senior military to gather for the sunsoaked season launch and a highly anticipated, brand-new parachute display.
Having completed a busy period of winter training overseas and in the UK, this would be the inaugural display of one of the Falcons’ busiest seasons to date.
Though the traditional display was changed last year to coincide with the RAF Falcons’ 60th anniversary celebrations, the famous canopy stack formation the team has been performing since the 1970s will continue to be displayed, embellished by some new, exciting and dynamic parachute manoeuvres.
Ahead of the two-minute call from the Drop Zone Safety Officer (DZSO), the team was going through their final safety checks, loaded up with all sorts of parachuting equipment and smoke canisters.
That the mighty Chinook was merely a spec in the sky from ground level really emphasised just how high up the Falcons were. With the weather on their side, they would be jumping from the maximum height of 7,000 ft, staying in constant communication with each other.
Adorned in the prestigious red, white and blue canopies of the Royal Air Force, whose colours truly popped against the crisp Oxford sunshine, the Falcons commenced their complex routine, starting with the ‘snake’ formation.
Once in position, the team formed a touching heart-shaped tribute, dedicated to the members of the Hearn family who were with us for the display.
Named after the fairground ride, the Falcons then turned into the ‘carousel’, the team’s favourite manoeuvre and a fun visual spectacle, before completing an impressive ‘sabre chase’ in the final formation before the display landing.
All the while, separate from the other parachutists was Sergeant Doug McAll, flying the flag of the United Kingdom. Upon landing, the team safely stowed away their equipment,
secured their parachutes, and waited for the command of the DZSO to take their positions for the RAF Falcons parachute salute.
Just as we experienced first thing over tea and coffee, the Falcons were more than happy to meet and greet their awestruck audience, even after the exhilarating thrill of a parachute display.
“We obviously had the clear blue skies, so we were able to do the full display, which is nice because we are normally battling with the cloud, wind and rain,” Philpott told us, fresh from his 7,000 ft descent.
“It’s really nice to see the crowd. You can hear them before you land as well, so it’s nice to get that little bit of a buzz. After a few hundred descents, the nerves disappear, but the buzz stays.”
A dramatic close-up of the Chinook was a fitting way to finish the launch, as the Falcons embark on another spectacular season of displays.
THE GOLDEN TOUCH
Jordan Major, Head of E-Commerce
Encapsulating the spirit of a luxury drinking experience, we explore the explosive growth of the ultra-premium British brand, Au Vodka
Writer: Phoebe Harper
The most followed UK spirit brand, the internet’s second most popular online spirit brand, and a year-over-year growth of 10,000 percent recorded in the space of 2021. These are just some of the remarkable accolades achieved by ultra-premium British brand Au Vodka (Au) since the company’s inception in 2016. It is fair to say that the trajectory of this young and dynamic company is nothing short of meteoric.
An online success story, Au is the ultimate example of e-commerce and forward-thinking marketing tactics fuelling a company’s growth. Leveraging social media as a key tool in propelling brand awareness, Au demonstrates the necessity of a strong online presence to attract a loyal following and maintain a position at the forefront of consumer awareness.
Based in Swansea, Wales, Au has amassed a devoted gathering of social media followers, coupled with celebrity endorsements and multimillion-pound growth. With iconic
branding, Au’s token golden bottles with hand-crafted pewter labels have become synonymous with a luxury drinking experience.
We take a dive into Au’s growth and international sights for expansion with Head of E-Commerce, Jordan Major.
EME Outlook (EO): Firstly, could you briefly introduce us to Au Vodka?
Jordan Major, Head of E-Commerce
(JM): Au was founded in 2016, when Charlie Morgan and Jackson Quinn thought of the idea after seeing everyone gifted the same boring spirits at Christmas time. We have seen real growth from 2019 to present, going from £700,000 in turnover to £45 million last year. The main products we sell are our 70cl flavoured vodkas.
This started with Black Grape then we moved onto Fruit Punch, Blue Raspberry, Green Watermelon, Red Cherry and our latest flavour Pineapple Crush. We also did a special edition Coffee Liqueur that we have since stocked in Tesco as well as on our online site. We also sell a great range of merchandise, from glassware to money guns - we are trying to offer something for every Au fan.
EO: As one of the UK’s fastest growing online brands, could you expand on the role that e-commerce plays at the company?
JM: E-commerce is a massive part of our brand. It generated just 10 percent of our overall sales in 2021 however we believe it’s 90 percent of what people see from us. We love coming up with unique ways to show our customers what we are doing at Au from day-to-day office life on TikTok to our huge marketing campaigns on Instagram and Facebook. E-commerce pulls it all together and allows customers to purchase what they see us advertising directly from us.
PHOTOGRAPHY COURTESY OF HTTPS://AUVODKA.CO.UK
– JORDAN MAJOR, HEAD OF E-COMMERCE, AU VODKA
EO: How did the company navigate the COVID-19 pandemic? Did you notice any new trends during this time?
JM: During COVID-19 we saw a number of challenges arise, as did everyone in the business world. We managed to use the fact consumers were at home with more disposable income to our advantage from an e-commerce point of view as we were able to target people with new drinks they could make at home. Developing our social media pages was a massive focus during COVID-19; everyone was at home, so why not try and gain as many followers and likes as possible before people’s lives go back to normal and they don’t have time to scroll Facebook and Instagram feeds for hours? We saw massive success from this, growing to the most followed UK spirit brand.
EO: How does Au Vodka differentiate itself from the competition on the UK retail market?
JM: We have an obvious USP in the fact we have unique coloured liquids as well complemented by an amazing taste. As well as this, we use social media and the “modern” way of
PHOTOGRAPHY COURTESY OF HTTPS://AUVODKA.CO.UK
PHOTOGRAPHY COURTESY OF HTTPS://AUVODKA.CO.UK PHOTOGRAPHY COURTESY OF HTTPS://AUVODKA.CO.UK
PHOTOGRAPHY COURTESY OF HTTPS://AUVODKA.CO.UK
marketing to our advantage as some of our competitors are much slower to react to trends.
EO: Looking ahead, how will e-commerce continue to develop the company’s growth?
JM: I have massive personal goals to achieve with our e-commerce department this year. We see 2022 as the year we can start to take over the EU e-commerce space for spirits as well as launching into the US and making some noise out there, growing from £5.2 million to £10 million next year. Alongside this, to keep ourselves busy we will continue to push the boundaries with our marketing and social campaigns with the amazing work from our PPC team.
