Doing Business in the United Arab Emirates with a PEO/EOR
The United Arab Emirates (UAE) has a strong export industry based on oil, natural gas, dried fish, and dates, yet inside the country other industries are booming, presenting opportunities in tourism, professional services, and manufacturing. As tensions over oil has risen, interest in foreign investment has grown as a means of diversifying the economy. For companies looking to expand into the UAE, partnering with a local professional employer organization (PEO) or employer of record (EOR) would prove a smart investment, not least because it would provide consulting on the complex regulatory and cultural barriers to entry for foreign firms.
Why Use a PEO/EOR in the United Arab Emirates?
The UAE may be positioned to accept foreign investors in theory, but with the stark language, cultural, and legal differences between most foreign investors and their counterparts in the Middle East, the transition into UAE markets can be strenuous. Partnering with a PEO/EOR helps relieve that burden, and foreign companies can focus on their broader business goals while in-country experts handle contracts, payroll, HR, conflicts, and staff turnover compliantly and cost-efficiently.
1. Velocity Global: www.velocityglobal.com
While Velocity Global is an international company (US based), its extensive partner network makes it feel like a local one in many respects. The Velocity Global name is certainly a trusted one, and its large client base makes it a desirable partner in the PEO/EOR space, especially if expansion to multiple countries is planned and the investor wants to outsource everything to one company at the same time.
2. New Horizons Global Partners: www.nhglobalpartners.com
If market entry seems difficult in the UAE, consider recruitment. The Middle East has an incredibly rich and diverse culture, which is wonderful for the staff settling into their new roles in the country, but can be difficult for companies in the early stages of actually finding those staff. In addition to providing PEO/EOR services in the UAE, New Horizons Global Partners can also deploy its expert consultants for recruitment, making it an end-to-end solution for labor dispatch in the UAE.
3. papayaglobal: www.papayaglobal.com
papayaglobal is a platform-based PEO solution that serves the UAE as well as a number of other countries all over the globe. It is suited especially for companies without a local entity that are looking for a technological ‘hands-off’ solution and who are less sensitive to the cultural difficulties that may be encountered in setting up in the UAE. The platform aims to streamline the process of hiring, employing, and managing staff in the UAE, but it does not appear to offer the same bespoke solutions as other PEO providers on this list, and in this regard should be used with caution if investors anticipate any difficulties in adjusting to the business environment in the UAE.