The United Arab Emirates has positioned itself as a global
hub for commerce, trade, and investment. While this may seem like a symbol of
economic progress, it carries a hidden agenda that many overlook.
Starting a business in Dubai UAE is often seen as an
opportunity for entrepreneurs, but the broader strategy involves UAE-owned
businesses expanding aggressively into foreign markets, embedding themselves in
strategic industries across Asia, Europe, and Africa.
This expansion is not purely a product of entrepreneurial
spirit. It is often backed by state wealth, sovereign investment funds, and
diplomatic influence. The result is a coordinated effort to secure control over
key sectors in other countries, frequently sidelining local entrepreneurs and
homegrown businesses.
How UAE Business Setups Operate Abroad?
UAE business setup in UAE free zones gives Emirati companies
considerable operational freedom, which they then leverage globally. These
companies follow a calculated strategy.
Large Emirati firms identify industries with high potential,
often in countries where local businesses lack the same access to capital. They
establish subsidiaries, joint ventures, or acquire direct ownership stakes.
Thanks to deep financial reserves and offshore company setup
in UAE, these businesses enjoy tax benefits and anonymity. This lets them undercut
local competitors, offer lower prices, and invest heavily in marketing to
dominate markets quickly.
Once established, UAE-owned companies often vertically
expand within the sector, controlling supply chains, distribution networks, and
export channels. This offers long-term control over pricing, availability, and
consumer access in the host nation.
Impact on Local Entrepreneurs and Small Businesses
The aggressive model of setting up a business in the UAE and
expanding abroad often leaves local entrepreneurs struggling. Lacking the
financial muscle to survive price wars or compete with heavy discounts, many
small businesses are forced to shut down or sell their operations.
This consolidation limits consumer choice and creates market
dependency on foreign-owned entities. As UAE businesses expand their reach, the
cultural and economic identity of local industries is often replaced by
imported corporate models. Innovation suffers, and the barrier to market entry
grows steeper for locals.
Case Studies
UAE Businesses in the United Kingdom
The UK has seen increased UAE enterprise activity across
real estate, retail, and hospitality. While these ventures are commonly framed
as lucrative foreign investment, their long-term impact is more complex.
For example, UAE-backed property investments have escalated
housing prices in London and other cities. This has disrupted local housing
markets and created urban zones tailored to the ultra-wealthy.
The hospitality sector, too, has seen small independent
businesses lose market share to large, well-funded UAE brands.
This pattern reflects a larger question: Why set up a new
business in the UAE if the eventual goal is to monopolize foreign economies?
UAE Businesses in South Asia
South Asia, particularly Bangladesh and Pakistan, has become
a focal point for Emirati capital. Ports, telecom, and banking sectors have
seen considerable UAE involvement.
While this brings infrastructure upgrades and short-term
jobs, it often creates long-term dependency.
Starting a business in Dubai UAE might appear distant to
locals in South Asia, but the economic consequences ripple out. UAE-owned
telecom firms, for example, dominate Pakistan’s consumer markets, sometimes at
the cost of local enterprises.
In Bangladesh, UAE investment in ports has raised concerns
over national control of trade logistics.
The Role of State-Backed Wealth in UAE Expansion
UAE companies have an immense advantage through sovereign
wealth. Funds like the Abu Dhabi Investment Authority and Mubadala invest
billions in foreign markets annually.
Their strategy aligns not only with profit but with
diplomatic goals, extending both soft power and economic dominance.
UAE business setup in UAE free zones allows for scalability
and tax incentives that many local firms abroad cannot match. The line between
private entrepreneurship and state agenda is blurred, making regulatory
intervention by host governments politically sensitive.
Why Governments Should Promote Local Businesses?
To resist foreign economic control, governments must create
environments that support local innovation and protect sovereignty. Promoting
the best business to do in UAE might be a good idea for Emiratis, but host
countries must prioritize their domestic businesses through:
- Tax
incentives
- Low-interest
business loans
- Public
campaigns encouraging local entrepreneurship
Such policies reduce reliance on foreign capital and keep
wealth circulating within national borders.
How Can Communities Boycott UAE Businesses?
Communities play a critical role in economic
self-determination. Identifying UAE-owned businesses and opting for local
alternatives is a form of resistance. Public awareness campaigns can shift
consumer behavior and empower small businesses.
Where to invest money in UAE or how to invest money in UAE
are popular queries among expats and global investors. But for communities
affected by UAE dominance, the focus should be: how to reclaim market
independence.
Boycotts and support for local enterprises not only protect
the economy but also build stronger, more unified communities.
Policy Recommendations for Protecting Local Economies
Governments facing increased UAE economic presence must:
- Strengthen
foreign investment laws, especially regarding strategic sectors
- Support
SMEs with grants, training, and tech access
- Launch
public awareness programs to promote buying local
These measures are essential to protect against
over-reliance on UAE entities that started with business setup in UAE free
zones and later grew into global economic players.
FAQs
Are all UAE investments harmful to foreign economies?
Not necessarily. While some bring benefits, concern arises
when these investments result in long-term dependency and loss of economic
self-control.
How can I identify UAE-owned companies in my country?
Check public business registries, financial filings, and
media reports. Consumer watchdogs can also help.
What role do consumers play?
Consumers can choose to support local products, raise
awareness, and avoid spending on companies that undermine local economies.
