Business in Dubai

Basic aspects of forming an alliance or partner to your business in Dubai

Our globalized economy is constantly changing. It is very important for any business in Dubai to keep up with these changes to stay relevant in the market. Sometimes, a single company can’t handle all the necessary resources to surpass the innovations from competitors. Because of this, strategic alliances have become a common way for businesses to stay afloat in the commerce world.

In this article, you will learn about the factors you must take into account as you create a partnership in the UAE. From the legal aspects of alliances to how you can guarantee a successful deal. Let’s take a look:

  1. What is a business alliance in Dubai?
  2. Why are business alliances beneficial for your company in Dubai?
  3. Which legal factors should you consider when forming a business alliance in Dubai?
  4. Where can you find a business partner in Dubai?
  5. What do you need to prepare for a business alliance in Dubai?
  6. How can a company ensure a successful partnership?
  7. How can Connect Business Centers help your business in Dubai?

1.      What is a business alliance in Dubai?

In its essence, a business alliance consists of establishing a partnership with another company to achieve a common strategic goal. Regardless of the final objective, a business alliance should always ensure both companies are benefited from their new commercial relationship.

Usually, the most important thing to look for when starting an alliance is to make sure it will bring something your company doesn’t already have. Whether it is innovative technology or personnel specialized in another area, a partnership will always open the door for new achievements that were not possible before.

Businesses in Dubai are constantly attempting to find new ways to be competitive in the market. There are great ways to diversify the services offered by your company. However, forming a business alliance is an excellent alternative that will allow you to explore new financial growth opportunities.

Another way to expand your services is finding a business in Dubai for sale. Acquiring assets is a great way to enter new areas and learn about potential partners in other fields.

Regardless of your motivation to venture into a business alliance, you just need to keep in mind that a well-handled partnership will bring your company the success you are looking for.

2.      Why are business alliances beneficial for your company?

It is certain that any business decision will come with risks. It may involve an initial plan not working as expected, or unforeseen conditions affecting the way your business operates. A strategic alliance is not exempt from this kind of danger. Nevertheless, many factors make it a favorable move for your company if you know how to manage a partnership with care. These are some important ones to remember:

  • You get to share resources with another company, but both businesses will maintain their independence at all times.
  • It presents a great opportunity for market expansion; you will be able to reach new customers from your partner’s territory.
  • Both companies’ employees will have the opportunity to exchange knowledge and skills.
  • Both companies’ customers will enjoy a more fulfilling and complete service. Your partner will bring new aspects that complement what you already offer.
  • Joining forces with another business can get you ahead of competitors.

Strategic alliances can be especially beneficial for small businesses in Dubai. These ventures allow you to learn from the work of another company with valuable experience in the market. The commercial strength brought by this kind of alliance can be very effective in bringing greater recognition to your business and significant professional development.

Starting a partnership is the way many successful companies are speeding up their innovation process. Strategic alliances have proven to be a crucial method of keeping brands relevant. Therefore, since it is a practice that has given great results to many corporations, it might be something worth trying for your own company.

3.      Which legal factors should you consider when forming a business alliance in Dubai?

Regardless of the fact that strategic alliances are influenced by several factors such as government guidelines and the level of economic development of the partners’ countries, the main two are the level of trust between the businesses, and the partners’ national and corporate culture.

The procedures and requirements for establishing a business often involve connecting with several establishments and legal bodies. These bodies are formed by both local and federal based on the nature of the venture and the legal structure. The UAE legal system differentiates between two forms of business agency: the registered and unregistered agency.

3.1. Requirements for an alliance with a registered agency

A registered commercial agency is an agreement between companies and agents registered with the Ministry of Economy. In this particular case, according to the provisions of the UAE Agencies Law, any commercial agencies must adhere to the following requirements regarding their category and the description of the agreement:

  • The commercial agents must be UAE nationals or companies completely owned by UAE natives.
  • The agency agreement must determine the definitive domain of the agency. Within this domain, business operations are authorized. The agreement must concede the agency exclusivity to wield in that defined territory.
  • The agency agreement will only be functional if it is of a written nature and is notarized.

3.2. Requirements for an alliance with an unregistered agency

On the other hand, an unregistered commercial agency is created by the contract between the company owner and the agent. In these cases, the Commercial Agencies Law grants no protection, as it is a relation not made under or subject to the Agency Law. Also, there is not a secondary procedural requirement to create a valid arrangement.

Unlike registered commercial agencies, unregistered agents are not required to be UAE nationals or commercial institutions owned entirely by UAE natives. However, it is required for unregistered agents to be an entitled presence to trade in the UAE.

4.      Where can you find a business partner in Dubai?

The task of searching for a business partner who is trustworthy and enthusiastic can be complicated. This mostly applies you are a foreigner or a small business in Dubai with little experience. Any individuals interested in starting a company or looking for any business in Dubai for sale begin the process by seeking UAE local sponsorship.

4.1. Finding a partner through business setup providers

There are certainly some barriers when setting up a business in the UAE. Still, it is important to remember the new business opportunities there are for overseas investors from all over the globe. A frequent worry is the law of partnership in Dubai and other parts of the UAE. Controlled by United Arab Emirates Commercial Code, the foreign investors or traders are required to have a UAE national as their business partner to establish a company or business in the territory. 

The most effective way to find business partners is with great business setup providers. These providers are able to secure your partnership and make sure that your business is completely yours and you get to enjoy all the profits.

4.2. Forming a partnership online

Dubai is progressively becoming a hub for e-commerce. Therefore, you will have a very large public to target and organize your online business in Dubai. A well-grounded business partner might be the key piece you are searching for to make a name for your business or your company in Dubai.

You need to be informed about the correct ways to find a business partner. This way, you can guarantee you do not fall into any corrupt partnership agreements. For that reason, always get in touch with authentic company formation consultants. Also, get local or virtual allies who would act as sleeping partners at a formal annual fee to enjoy a risk-free online business in Dubai

5.      What do you need to prepare for a business alliance in Dubai?

Determining the ideal partner is the first step in preparing for an alliance. Try to research your potential ally’s area of experience and how it enhances your own business. Also, look up previous or current partnerships, their level of success, and the financial gains they achieved.

Once you have decided the type of partner that will benefit your business the most, you will also need to figure out the type of relationship you are looking for. Strategic alliances can range from short relational contracts that serve to create smaller projects, to a significant formation of a joint venture where the companies find ways to grow together in the long run.

It is vital for any business in Dubai to carefully determine the kind of partnership they need. Evaluating the benefits and compromises of a shorter or longer contract requires a lot of attention. By doing this, you can make sure your company is going into the right deal.

It is very important to determine the kind of deal and partner you’re looking for. However, you must also consider what your company can offer to your business ally. Besides understanding how your resources complement your partner’s services, finding the adequate workspace and infrastructure to join the two businesses’ workforce is an essential step in preparing for the alliance.

6.      How can a company ensure a successful partnership?

As you finally reach an alliance with another business in the UAE, you must now look into ways to get both parties satisfied with the deal. It is not uncommon for companies to face conflict after the initial promising start of an alliance. These disagreements can come from disputed interests, cultural differences, or the inefficiency of logistic factors.

These disputes can result in an alliance filled with mistrust and doubt. In the long run, it can affect the outcome of the goals the partnership is trying to achieve. Now, because of this, it might seem like it is hard to guarantee success in a business partnership. Nevertheless, following these key points can help your alliance stay in a positive direction:

  • Define and maintain a clear goal throughout the partnership. Always remember why you need the alliance, and what it can bring to your business if it is successful.
  • Set well-defined expectations on what you need from your partner. However, also make sure your ally understands the capabilities of your own company.
  • Keep any business decisions you make as transparent as possible. Gaining your partner’s trust will lead to a better relationship. This will lead to an efficient dynamic between the two businesses.
  • Establish a mentality within your team that favors the partnership. Promote values that emphasize teamwork, trust, and problem-solving measures.

Following these recommendations can be especially important if you just started setting up a business in Dubai. Building up your reputation as a reliable partner is an essential factor in making your company grow among competitors. For long-established companies, keeping a good image with partners can bring further growth and success.

7.      How can Connect Business Centers help your business in Dubai?

If you are setting up a business in Dubai and need the ideal offices to carry out your operations, Connect Business Centers offers the help you need. Did you find a business in Dubai for sale and need a new place to establish it? Our strong hub of commerce centers all across the Emirates can offer you any alternatives you might be looking for.

Whether you are starting a strategic alliance, you have a small business in Dubai, or you intend to set up an online business in the UAE, our algorithm can find the best match for your office. Our team is readily available to assist you in finding a property that fits your requisites and budget.

Would you like to contact Connect Business Centers to find more information on meeting rooms and virtual offices in Dubai? Call us on +971 433 166 88 for any questions. You can also email us at, and one of our representatives will answer any questions you may have.

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