(MENAFN- Khaleej Times) The UAE companies see growth opportunities in Western Europe, the Middle East, and North American countries and prefer to expand into them this year, according to a survey conducted by Kreston Menon.

The study found that 62 per cent of UAE businesses prefer to expand to the UK, Germany, France and other Western European countries while 54 per cent aim to expand into Middle Eastern countries in 2024.

The other regions that top the list of UAE companies' global expansion preferences are Northern America (Canada, USA, Mexico etc.), North Asia (China, Japan, Korea etc.) and South Asia.

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Sudhir Kumar, senior partner and head of corporate communications at Kreston Menon, said the main challenges for UAE entrepreneurs in international expansion are market volatility, the right business partner, and talent.

“Most of the governments have formed special teams to handle international investors and those teams relate with the trade offices in UAE. This helps businesses' expansion plans go seamlessly,” said Kumar.

He added that UAE companies are not afraid of truly going global, and strong trading relations with North America are reflected in the fact that 44 per cent are considering expanding there.

UAE companies revealed that government support, skills and talent, favourable trade agreements, tech infrastructure and digitalisation, future economic growth prospects, alignment with long-term growth strategy, favourable tax policies and transparency in the regulatory environment are the key factors that attract businesses to invest in foreign countries.

“UAE respondents were the only country to value government support the most attractive when considering expansion into a country. Cultural and language similarities to existing operations were valued as the least important. The emphasis on future economic growth as a key trait for international expansion among UAE respondents highlights the region's forward-thinking mindset. Additionally, the high value placed on local talent availability and openness to skilled immigration indicate a strategic focus on harnessing human capital to drive innovation and competitiveness,” said Kreston Menon.

Among challenges, managing economic volatility, adapting logistics and supply chain issues and finding the right local partners are the key issues that UAE businesses face when foraying into other markets.

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