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In 2024, the volume of IT services exports from Ukraine is estimated at approximately $7.5 billion. It is expected that by 2033, the industry will be able to resume its growth momentum and reach a volume of over $15 billion, provided that the macroeconomy stabilises and international integration continues actively. The average annual growth rate (CAGR) is projected to be 8–10% between 2025 and 2033.
The UAE today resembles New York in the 1950s — the region is literally ‘boiling’ with innovation, and the flow of entrepreneurs and companies is creating incredible momentum for change. As was the case back then, the UAE offers many opportunities, but there are also many opportunists who come and go. Localising technologies from Ukraine to the United Arab Emirates (UAE) is a strategic step that opens up new growth vectors and access to the MENA and South Asian markets for start-ups and service companies.
Dubai and Abu Dhabi are actively transforming into global innovation hubs thanks to flexible regulations, the availability of capital, technological infrastructure and transparent rules of the game.
Why companies are turning their attention to the Emirates
- Tax advantages: Minimising costs and maximising profitability
In today’s highly turbulent environment, localisation in the UAE is one of the most effective ways to optimise a company’s global financial flows. The Emirates’ free economic zones offer complete exemption from corporate income tax, which is in stark contrast to many countries and allows companies to
- retain significantly more capital for reinvestment,
- demonstrate higher profitability to investors,
- and build holding and IP business structures on favourable terms.
- Geostrategic location: access to a billion-strong audience in 4–6 hours
The UAE is located in a unique geographical triangle connecting Europe, Asia and Africa, covering more than 3 billion potential consumers within a single flight radius. This makes Dubai and Abu Dhabi ideal platforms for launching regional headquarters and organising logistics and operational hubs.
With world-class infrastructure — seaports, airports, data centres — companies can ensure fast delivery of products, cloud services and data to new markets with minimal delays. Therefore, localisation in the UAE opens the door to expansion without the need for costly physical scaling.
- Support for innovation: The government as an investor and accelerator
The UAE does not just create favourable conditions for technology businesses — it invests in them. Through state funds, accelerators and specialised free zones, the country is actively attracting:
- fintech, blockchain, AI and healthtech companies,
- deeptech start-ups looking to scale up,
- technology R&D centres.
Initiatives such as Hub71 in Abu Dhabi and Dubai Future District provide startups with funding and grants without losing equity, access to enterprise clients from the public and corporate sectors, visa, tax and legal support. In the UAE, technology companies do not fight with the regulator — they develop together with it.
What do Western companies need to know if they want to enter the UAE market?
- Adaptation to the local market
Despite the UAE’s openness to technology, adapting a product to the local market requires consideration of cultural, ethical and regulatory characteristics. Some of the barriers include
- Some products need to be Sharia compliant in order to scale. Without this, it will be difficult to scale.
- Data storage laws often require local hosting (especially in finance, healthcare, and EdTech).
- Even in cosmopolitan Dubai, Arabic remains the official language, and full localisation is desirable for B2C products.
- Behavioural specifics. Users may expect a different tone of voice, design, UX logic — for example, more formal communication or less aggressive CTAs.
- Prohibition or censorship of content related to alcohol, sexuality, gambling, LGBT+.
- Changes in marketing/UX to meet local expectations
Successful technology companies operating in the Arab world deeply localise not only their interface, but also the user experience and brand values. This includes:
Language adaptation:
- Full support for Arabic (including right-to-left UI display format).
- SEO/ASO localisation for regional markets (Apple Store GCC, Google Play MENA).
- Customer support and bot platforms — preferably with Arabic language options.
UI/UX
- Fewer aggressive elements: minimalism, respect for personal space, slower audience warm-up.
- Symbols, icons, colours — neutral or traditional (avoid red in the context of ‘danger’; green is associated with Islam).
- Clear privacy policies, emphasis on security (especially in fintech/health).
Content and tone of voice
- B2B often uses a formal, respectful style.
- B2C uses visual content with elements of family values and local holidays (e.g., Ramadan campaigns).
Messengers and platforms
- Most users in the region are mobile-first, so marketing often focuses on WhatsApp, Snapchat, TikTok, and Instagram (mainly stories/shorts formats).
To scale successfully in the Arab world, it is important not only to translate the product, but also to convincingly integrate it into the socio-cultural context of the region. This requires investment in local UX design, linguistic creativity, and flexibility in the business model.
What are the most common mistakes Western companies make when trying to localize in the UAE?
- Ignoring the cultural context
Many companies transfer their marketing and UX strategy without change, without adapting it to local habits, ethics, and communication style. For example:
- aggressive sales pushes on LinkedIn or via email can backfire;
- humor, slang, or even visual identity elements (clothing, symbols) can be inappropriate or offensive.
- Choosing the wrong registration zone
Some companies mechanically choose a “popular” free economic zone without considering:
- its jurisdiction (DIFC, mainland, or offshore),
- the specifics of the license (for example, fintech requires a license that is not available in every zone),
- restrictions on physical activity within the country (most free zone entities cannot sell directly on the “mainland”).
- Underestimating the time and cost of opening a bank account
Due to stricter AML/KYC requirements, the account opening process can take 1-3 months, require complex checks and the personal presence of the founders.
- Counting on “everything will be simple”
The UAE is indeed a simple and convenient jurisdiction, but it is not plug-and-play. Companies need to: have a clear localization roadmap; engage a local legal/financial advisor; create an adapted business model (especially for B2G, fintech, healthtech, education).
- Lack of a local partner or representative
When entering the UAE market, it is not only the technical or legal readiness of the company that is critical, but also the presence of trust in the local context — through partners, networks, and experience. Here, it is often not what is written in the documents that matters, but who you know and who knows you.
What we learned after entering the UAE market, with all the typical mistakes, trials, and adaptations:
- how to localize a product for the MENA market, taking into account local regulations;
- how to structure a business so as not to encounter barriers in banking, licensing, or working with clients;
- how to build relationships that open doors to partnerships, tenders, and synergies that are not available from the outside.
To sum up, what do you need for a successful entry into the UAE market?
- A high-quality product or deep expertise. Here, they are looking for the best, regardless of cost. If you can solve a problem better than others, you have a chance.
- A strong team. Flexibility, experience, and speed are needed. Without an adaptable team, it is difficult to survive.
- The right local partners. Networking is everything. Local connections open doors that would otherwise remain closed.
- Competition: many players, few real experts. Many people “sell ideas,” but few actually implement quality solutions.
Pros of working in the UAE market
- Rapid scaling. The UAE is actively investing in digital transformation, creating favorable conditions for the rapid growth of technology companies.
- Government support. Initiatives such as Smart Dubai and UAE Vision 2021 are aimed at developing digital infrastructure and attracting innovative companies.
- High demand for modern technologies. There is a growing need for cloud computing, data analytics, artificial intelligence, and cybersecurity.
- Flexible regulatory environment. The UAE offers favorable conditions for doing business, including tax incentives and simplified company registration procedures.
Cons of working in the UAE market
- High competition. The market attracts many international players, creating fierce competition.
- Need for localization. Successful operations require adapting products and services to local cultural and linguistic characteristics.
- Dependence on partnerships. To enter the market effectively, it is important to establish cooperation with local partners who understand the specifics of the market.
While in Europe or the US, decisions are made based on need and unit economics analysis, in the UAE, financial efficiency is often secondary. Here, it is important to have the best product in the category — and yesterday.
The UAE is actively investing in attracting technology companies. Players such as Saudi Arabia are stimulating even more competition in the region, but this is precisely what creates the ideal conditions for growth. Although the startup ecosystem is not yet on par with Silicon Valley, at this rate, it will be within the next five years. This is true in terms of the digitization of government services, the tax system, and the ease of starting a business.
The UAE is already ahead of most countries in the world. Here, even the state itself works as a service for people and companies. That is why the country is becoming a magnet for the world’s best talent.
Andrii Lazorenko, Co-founder and CEO of IdeaSoft
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