Focus Vol 105

Business Challenges in 2022 & Way Forward

Globally, 2022 has been challenging for business in the region with one shock after another — the coronavirus pandemic, Russia’s invasion of Ukraine and a resurgence of inflation. Inflations affects all businesses with increased costs and thus can hinder bottom line. Several strategies can be implemented for multi-nationals, including hedging, locking in prices, bulk buying or even revisiting contracts with vendors or looking at alternative procurement partners.

SMEs and MSMEs form 94% of all registered businesses in the UAE. Differentiated and specialized Freezones, along with support of government to boost the start-up sector and a series of transformation in Visa rules will continue the growth and recovery from the past economic shocks. A key proof of this includes Dubai’s ranking at fifth globally and first in the Arab world in the UN e-government survey 2022.

2023 will also witness the implementation of corporate taxation for the first time in the country. A major way to cut cost would be evaluation of suitability of free zones in the country which will provide tax free status for those who do not conduct business with the mainland.

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