Setting up a business requires many things to fall into place including funds, spaces, and other resources but the idea is what makes the foundation of a business. Every entrepreneur has an idea and a vision and that is required to navigate the future of your business.
Every company that is looking to expand dreams of announcing its IPO at some point in time of its business journey. In this article, we will explore and understand what is an Initial Public Offering (IPO) and the business journey of an entrepreneur in the United Arab Emirates targeting an IPO.
What is an IPO?
An Initial Public Offering (IPO) refers to the event when a private company sells shares of its stock in the public for the first time in a stock market. This event manifests the transitioning of the company from private to public ownership, which is what the term "going public" sometimes refers to as IPOs. A business can collect a large sum of money, which may be used to settle loans, undertake future growth, and so on.
Also, it opens private investors, e.g., family members, angel investors, and founders, to liquidate their investments, often having better-than-expected returns involved.
Going public ultimately involves careful planning: everything from financial audits to timing to smooth operations as a public company. This venture also shows the penchant points of UAE as rich turf for possible businesses.
How to Navigate the Business Journey from Idea to IPO in the UAE?
Navigating a business journey in the United Arab Emirates is challenging but very ultimately rewarding. Let’s look at the step by step journey that a business goes through-
- Analyzing the Market Potential
The first thing to do before diving into the oasis of opportunities is to identify the market potential. Countries like the UAE offer a diverse range of opportunities. Be it in the oil sector, tourism sector, food & beverage sector, or any other area, Dubai’s strategic location attracts entrepreneurs from many continents like Asia, Europe, and Africa.
This is further demonstrated by the increasing trend toward health and wellness technologies and the growing demand for beauty and personal care services, revealing the creative potential of the region in conceiving business ideas. The adaptation of tech-centric businesses in the UAE can be attributed to the country's pledge towards e-commerce as well as digital transformations.
- Assessing the Feasibility of the Business
Evaluating or assessing your business potential is also an important part. The United Arab Emirates (UAE) is a highly competitive market and provides a contemporary transportation infrastructure and a stable macroeconomic environment.
These factors support a productive product market, the most significant component when assessing the chances of success for an organization.
Other considerations are the advantages of setting up your company in any of the Free Trade Zones (FTZs) in the United Arab Emirates, which bring benefits such as exemptions on taxes or easy procedures for starting businesses.
- Understanding the Social and Economical Aspects
An important aspect to consider before starting a business in the UAE is to have a fine understanding of the cultural and economic aspects of the country. As we all know Dubai is an Islamic state and yet diverse. Millions of people from different countries live here for business or academic purposes. But when you understand the socio-eco culture of Dubai, it becomes easy for you to navigate your business in the right manner.
Such diversity is reflected in the company's culture that emphasizes interpersonal connections, as well as face-to-face communication example, the employees gathered at their open workspaces during lunch.
Building mutual respect and trust is core to successful business transactions and it is in the best interest of the company’s long-term future to integrate and respect the customs of the region.
- Strategies for Marketing and Advertising
Establishing a strategy and marketing your business is the most important step to be taken before announcing the company’s IPO. It requires firm branding and marketing to attract the attention of a very diverse consumer base like in the UAE.
Bilingual marketing would be incredibly beneficial since business is primarily conducted in English and most of the potential audience for the business might not speak Arabic. But adding Arabic can also give an edge in brand recognition and adherence to local customs.
- Making an Idea into an IPO
An IPO is a way for an owner to redeem investments and build credibility in the market. It serves, of course, as a means of raising funds. However, going public is not as straightforward as it may seem, as this process is strictly regulated and shall only be achieved with a carefully planned and executed phase.
To a startup founder, an IPO marks the dawn of a new age and growth following years of hard work and graft. It provides investors with a chance to participate in the future success of the business. And with expectations that their stock options will pay off, employees might view this as their reward.
In the highly competitive world, Markai Corporate Services understands the value of your time. We don’t believe just in numbers but we believe in the quality of services provided.
It just needs an idea to foster your business journey and elevate it to the next level. At Markai Corporate Services, we provide expert guidance from idea to IPO and help your business grow to its fullest potential.
