The UAE stands as a growing trade partner for UK businesses. With excellent logistical infrastructure, a shared language and large expatriate and tourist population, you can see why.
The country has seen well-documented, transformational development over the last 20 years. Which has resulted in over 5000 UK businesses operating there. But before moving into the market, it’s obviously vital to grow a deep understanding of market drivers, business etiquette and consumer habits.
Here are five strategic insights to help guide UK exporters in establishing impactful, successful and lasting trade relationships in the UAE.
Source: London Chamber of Commerce and Industry
There is strong demand for high-quality and innovative goods
UAE businesses are particularly focused on sourcing high-quality, innovative products for competitive positioning within the Middle East region. UK goods fit this market opportunity perfectly.
This extends beyond consumer goods and to every corner of the economy, as UAE firms seek durable, efficient, and technologically advanced products across sectors like construction, healthcare, and manufacturing.
UK exporters can further appeal to this demand by emphasising quality assurance, compliance with international standards, and showcasing innovative applications of their goods. This quality-focused market also drives UAE firms to prefer suppliers with established reputations and transparent production processes.
The UAE has an increasingly diversified economy
While the UAE is still known for its oil wealth, the government has successfully diversified its economy. Key sectors now include tourism, real estate, aviation, healthcare, manufacturing and renewable energy.
The looking at the We Are UAE 2031 Strategy, advanced industries, IT, communication, financial technology are among those being targeted for growth.
“[UAE 2031 aims for] an economy that is competitive, growing at exceptional rates, diversified and of high value in new strategic growth areas, excelling in promising future sectors, and confirming the UAE's role as a leading economic power.”
For UK companies, this means that there’s strong demand and opportunities in these sectors. Particularly if paired with the first point, when high-quality and innovation is a core unique selling point. Put simply, the UAE has market opportunities beyond what you would initially expect.
Streamlined trade and business-friendly policy
The UAE ranks highly for its ease of doing business. For many years now a very pro-business agenda has been set out by the government.
“Since 2020, 100% foreign ownership of companies has been permitted in the UAE. This is rare for Middle Eastern countries and represents a significant incentive and simplification for firms wanting to establish premises or some sort of entity in the region.”
John Sommer, Co-CEO, WTA
The infrastructure in place to promote business is strong, including logistics infrastructure. Dubai is home to the 2nd largest airport in the world on passenger numbers. Also Jebel-Ali container port, which serves the region, is placed in the top 10 for container throughput.
Meanwhile, the We Are UAE 2031 plan only looks set to build on these impressive credentials for ease of doing business. Stating a desire to be a “Powerful magnet for entrepreneurs and innovators, enabling them to thrive and contribute to building the future of the UAE and the world.”
All this combined makes it much easier for UK exporters to establish a physical presence or distribution networks with minimal regulatory friction.
Jebel-Ali Port
Building trust through relationship-focused engagement is good business etiquette
In the UAE, business interactions are often relationship-driven, with a strong emphasis on trust and personal connections. This approach to business is grounded in UAE culture, where long-term relationships are prioritised over quick gains.
For UK exporters, this means investing time in getting to know local counterparts on a personal level, as it can significantly impact success. UAE business culture appreciates patience, courtesy, and a gradual pace in decision-making.
Understanding and respecting local customs is also crucial. For example, meetings often begin with small talk, and inquiries about family and well-being are common before transitioning into business discussions. Additionally, it's customary to avoid rushing into negotiations or discussing sensitive topics immediately. Handshakes are generally welcomed between men but should only be offered to women if they extend their hand first.
“UK businesses can culturally be at an advantage when trading with the UAE, as etiquette is very similar to Britain. Many Western economies, such as the USA, have a more direct approach to doing business. That can sometimes come across badly to British businesspeople. However, this isn’t the case with the UAE where politeness and a softer approach to business is well received.”
John Sommer, Co-CEO, WTA
UK businesses that engage in frequent visits, accept hospitality, and demonstrate cultural respect are better positioned for success. Those in the UAE view these gestures as signs of commitment and respect.
There is increasing emphasis on sustainability and sustainable goods
Sustainability initiatives are expanding rapidly in the UAE, with the government setting ambitious environmental goals under the UAE Energy Strategy 2050. This shift encourages B2B and B2C demand for sustainable goods, eco-friendly industrial products, and renewable energy technology.
UK businesses lead the world in this area. Those that prioritise eco-conscious manufacturing or can supply sustainable industrial goods will find a receptive market. UAE businesses are looking to meet both regulatory requirements and growing demand for green products.
In fact, the UAE plans to source 50% of its energy needs from renewable sources by 2050, highlighting its commitment to sustainability.
For UK exporters, the UAE market offers a wealth of opportunities driven by a pro-business environment, extensive logistics infrastructure, and growing demand in diverse and sustainable sectors.
We hope this article has assisted in demystifying the UAE market, which could be the next extremely lucrative market opportunity for your business. Also a potential gateway into the Gulf Cooperation Council countries.
By understanding the nuanced expectations of businesses in the region, UK exporters can use these insights to strengthen their chances of success and build lasting partnerships in the UAE.
For more specialist guidance on UAE market dynamics, our Dubai team will be able to assist you. Through living in the city, our team deeply understand the wider UAE market, including market entry strategies and logistical considerations. Get it touch for information specific to your business when exporting to the UAE.