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Beyond Zimbabwe: Opportunities for Zimbabwean Family Businesses in the global market

Setting the scene:

According to Zimtrade, the United Arab Emirates (UAE) became Zimbabwe’s largest export

destination market, overtaking South Africa in 2024. Zimbabwe’s exports to UAE amounted

to US$2.65 billion a 39% increase from US$1.91 billion in 2023. This growth was likely

attributed to the firming up of gold prices on the international market as it is a key market

for Zimbabwe’s gold. Meanwhile, exports to South Africa declined by 4.4%, and exports to

China saw a 23% drop due to falling lithium prices.


While South Africa remains the largest trading partner overall, with over 35% of

Zimbabwean export value going to the UAE, it is crucial to explore the UAE market further

for business opportunities and collaboration. Notably, while Zimbabwe exports significantly

to the UAE, imports from the UAE are relatively low at only 3.2% of Zimbabwe’s total imports

(US$305million).


The UAE’s economic success is largely driven by family-owned businesses, which account for 90% of all enterprises. However, managing family businesses comes with its challenges, such as governance, succession, and internal competition. To address these challenges the UAE Government and private sector have established frameworks and policies to ensure sustainability and growth.


Federal Level Interventions:

The Federal Decree-Law No. 37 of 2022 focused on Family Businesses which established the below interventions:

1. Creation of a roadmap for the governance of family enterprises and the regulation of

their ownership and operations in the country.

2. Launched the Thabat program to encourage family businesses to diversify into other

economic sectors.

3. Established the unified Registry for Family Companies, which is a comprehensive and

unified database containing all information related to family companies in the

country, under the supervision of the Ministry of Economy.


Business Support Level

Establishment of the Dubai Centre for Family Businesses in 2023, under the umbrella of the

Dubai Chamber of Commerce to help ensure the sustainability and growth of family-owned

businesses in the Emirate. The centre was formed with four main objectives:

- Promoting a Sustainable Family Business Ecosystem

- Facilitating Generational Transition and Upskilling

- Driving Policy Influence and Research- Developing Strategic Partnerships

- Partnering with global institutions to deliver world class training programs


Family level interventions

The creation of a framework for the setting up of family offices, designed to prepare family

members to collectively manage, sustain and grow their wealth across multiple generations. These offices assist the families in managing the numerous risks that affluence exposes families to, including and not limiting to 6 major areas:


  1. Family Continuity or Family Legacy and Leadership

  2. Integrated planning or Tax and Financial Planning

  3. Risk Management or Strategic Wealth Management

  4. Investment Management or Investment Planning

  5. Philanthropy

  6. Family administration or Trust and Estate Services


Why set up an office in the UAE?

The UAE offers Zimbabwean businesses a strategic advantage beyond trade, serving as a

global hub for expansion, wealth management, and investment. Key benefits include:


1. Access to Capital and Investors: The UAE is the second largest destination of FDI and

hosts institutional investors and venture capital firms looking into emerging markets.

Zimbabwean businesses can attract funding by positioning themselves in the UAE’s investor-friendly ecosystem.


2. Strategic Geographic Location: The UAE’s position provides easy access to Africa, Asia,

and Europe, making it an ideal base for international operations, with 33% of the world’s

population being within a 4-hour flight radius.


3. Business-Friendly Environment and Tax Incentives: Free zones offer 100% foreign

ownership structures, corporate tax incentives, zero income tax, and other incentives.

Zimbabwean family businesses can establish holding company structures and optimize tax

benefits.


4. Emerging Markets & Bilateral Relations: The UAE is increasing its investment in Africa,

focusing on infrastructure, agriculture and technology and there is a growing desire to

strengthen bilateral relations through the signing of Comprehensive Economic Partnership

Agreements.


5. Reputation & Credibility: Being registered in the UAE enhances the credibility with

international investors who view the UAE as a more stable and trusted jurisdiction compared to other markets.


6. Lifestyle & benefits: The UAE has a variety of residency packages which include 10-year

Golden Visas, Retirement Visas, employment visas, and Student Visas, making it attractive for business owners and families.


7. Access to Global Events: The UAE hosts numerous global events annually such as The Gulf Food Festival, Arab Health, Arabian Travel Market, Annual Investment Meeting, among

others. This creates a one stop platform for players to network and interact with global

players.


8. Stable Currency: The UAE dirham is pegged to the USD at AED3.67/USD1. This is ideal for

investment management and financial reporting.


How to Establish a Business in the UAE, a step-by-step guide:


Other Key Considerations

1. Regulatory Requirements: It is important to understand the UAE’s legal framework

as this is crucial for a smooth business setup. Certain sectors require additional

licenses from authorities beyond the normal Trade License.


2. Market Entry Costs: While the UAE has business-friendly policies, initial setup costs

can be high in some sectors. In cases, there is a requirement to have a full office

presence, while in other instances an office may not be mandatory.


3. Cultural & Business Practices: Differences in business etiquette influenced by

cultural dynamics and different legal frameworks must be navigated and managed.


In conclusion, The UAE is not just Zimbabwe’s top export market - it is also a powerful

gateway for international business expansion. By learning from the UAE’s successful family

business models, leveraging investment opportunities, and strategically setting up

operations in the UAE, Zimbabwean businesses can scale globally wile optimizing financial

growth and sustainability. Zimbabwean Family Businesses should seize this opportunity to establish a footprint in the UAE and position themselves for global success and longevity.


Rungano Innocent Nyaude

 
 
 

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