Advice on business expansion
Hey guys,
I run a jewelry business in Dubai, and the growth and sales so far have been very promising. Until now, Dubai has mainly operated as our sales hub, while our factory in Bangkok manufactures the products and exports them to us for onward sale.
The main issue with this setup has been logistics and delivery times, which is why I’m now seriously considering opening a manufacturing facility locally in Dubai. Financially, the numbers make sense.
My concern:
A factory would require a fairly significant investment in machinery and setup. My biggest concern is what happens in a worst-case scenario where, for whatever reason, I’m unable to continue operating in the UAE — for example, an issue with residency renewal, the company bank account being closed, licensing problems, or any other situation that forces me to wind down the company or leave the country.
My questions are:
If something like this happens, would I normally have enough time to wind down operations and relocate the machinery to another country?
If the company’s bank account were closed (it shouldn't, everything we do, is by the books but incase), how would I practically liquidate the company’s assets, receive the proceeds, and transfer the funds abroad?
Alternatively, would I be able to export the machinery itself back to Thailand or another country during the winding-up process?
Are there any legal protections, grace periods, or procedures in the UAE that prevent the factory and equipment from simply becoming stranded?
Is there anything I should structure differently from the beginning to protect the machinery/investment in case the company ever has to shut down?
Basically, I’m comfortable with the business risk of opening the factory. I’m trying to understand the country/company-structure risk and what my exit options would realistically look like in a worst-case scenario.
Would really appreciate input from anyone who has operated or closed down a manufacturing business in the UAE.