Network Marketing in the United Arab Emirates (UAE)

Many are fascinated by the color of the Middle East, and some even start a business there, despite the fact that the local market is very different from the European one. After reading the article, you will learn about the peculiarities of the local mentality, nuances of legislation, and a list of the best local MLM projects.

What the UAE economy looks like

The United Arab Emirates (UAE) is one of the richest countries in the world, the 2nd economy in the Middle East, 30th in the world, and 25th in terms of GDP. It is believed that the secret of their wealth lies in huge reserves of oil and gas, but this is just one of the reasons.

The whole world knows that Arabs have always been skillful merchants. In our time, sheikhs, descendants of ancient merchant families, have done painstaking work to create their own industrial sector and develop the local economy, investing their funds there.

P.S.: Sheikhs control 75% of the capital of industrial enterprises in the UAE, and the "Emirati wealth" is provided not by foreign investments, but by the capital of indigenous people and targeted loans.

Strict rules are in place in the UAE regulating the work of foreign investors and entrepreneurs. To register a network company in the Emirates, a foreigner needs a local "sponsor" - a UAE citizen, who will own 51% of the shares of the company. Many investment consultants claim that "sponsorship" is just a formality, but by law, the sponsor will be considered a full-fledged co-founder of the organization. Moreover, local courts are known for the simple principle: "an Emirati is always right in a dispute with a foreigner".

If you want to penetrate the UAE market, you need to be meticulous in selecting a partner among the native UAE residents - otherwise, you are putting your business at risk. Alternatively, there are Free Economic Zones (FEZ) in the Emirates where a foreigner can register a company, but such an organization will have limited capabilities and will only be allowed to operate within the FEZ.

Local Mentality Features

The main national trait of Arabs is hospitality, including in business communication. Business meetings in any Emirati home or office take place in an atmosphere of comfort and friendliness.

When interacting with local residents, strive to be honest, open, friendly, accountable for your words, fulfill promises, and then you will become a respected business partner. However, to avoid awkward incidents in communication with people, familiarize yourself at least with the basics of religious and cultural customs and traditions.

Some foreigners, for example, are surprised that in the United Arab Emirates business and financial transactions are openly discussed, even when the enterprise is owned by government officials or members of the royal family. Another unusual nuance for the European mentality is that all key decisions in the company are made by one person, usually the founder, and there is a clear hierarchy in management. Nevertheless, all business relationships are built on trust and respect.

Legality of Network Marketing in the UAE

There are no laws regulating the activities of multi-level companies in the Emirates, but the network marketing market is controlled by the Direct Selling Association of the UAE (DSA UAE) - this organization was established in 2012 and is a full member of the World Federation of Direct Selling Associations. The DSA UAE code of conduct clearly defines moral standards, ethics, and basic document management rules for companies and their distributors. Also, MLM projects must comply with all local laws, obtain a trade license, register their products \ services with municipalities, etc.

Top 10 MLM Companies in the UAE

The UAE market is noticeably different from the European one - many products from international corporations cannot be found there, different marketing methods to influence buyers, etc. However, this is what attracts new businesses.

We have compiled a list of 5 major local companies that use MLM methods:

1. PHYGICART

Project website - phygicart.com

Specialization - electronics, household goods, cosmetics, clothing, etc.

Phygicart.com is a marketplace in the classic sense. Their business is built on inventory (products come from third-party manufacturers and are stored in the Phygicart warehouse) and a managed market model (Phygicart provides marketing, logistics, and delivery). At the same time, their partner stores earn referral income if they bring other brands to the platform and a percentage of product sales.

2. THERMOMIX

Project website - thermomix.com

Specialization - home appliances

The Thermomix brand, manufacturers of the Thermomix TM6 kitchen appliance, was created back in 1971. It focuses on promoting a single product and creating a community of partners who are enthusiasts of quick and easy cooking.

By the way, Thermomix is one of the flagship projects of the German brand Vorwerk - a company with over 135 years of history. Vorwerk products are available in 79 countries.

3. EDMARK

Project website - edmarker.com

Specialization - dietary supplements and food additives

Edmark (formerly known as Ever Dynamic Marketing) was founded in 1984 and over its 38 years of existence, it has expanded to over 30 countries. Initially, the project was involved in marketing and selling products of other Malaysian manufacturers, and over time, they also opened their own production facilities.

4. VESTIGE

Project website - myvestige.com

Specialization - supplements, food products, cosmetics, household goods, plant fertilizers, etc.

Vestige, founded in 2004, ranked 30th in the list of the best MLM projects of 2020 (Global 100) according to Direct Selling News - it is the only Indian company to receive such recognition.

Vestige's main goal is to improve the well-being of its partners and indirectly their quality of life. This project is scaling at an impressive speed, adapting to modern industry development trends, and self-improving in all aspects (from marketing plan conditions to product quality).

5. ENHANZZ

Project website - enhanzz.com

Specialization - skincare

The founders of the company, networkers with 25 years of experience in the industry, reimagined the network marketing industry and created the Enhanzz project. The main priority of this Swiss-based company is their people. For them, Enhanzz constantly improves, modernizes the marketing plan, updates, and expands the product range.

As you can see, the network marketing industry is only beginning to develop in the UAE and their market is open to new projects. However, before starting a business in this country, we recommend that you live in the Emirates, study their culture, mentality, make friends with local businessmen, among whom you can choose a future co-founder and top leaders.

If you are interested in comparing the business features of the United Arab Emirates with other countries, we recommend checking out: