As one of the most competitive economies in the Middle East and North Africa (MENA) region, the UAE remains a strategically important market for Swedish companies, supported by strong infrastructure, global trade connectivity, and a stable business environment. For many companies, the UAE serves not only as a local market but also as a regional hub for accessing opportunities across the Middle East, Asia, and Africa.
At the same time, survey results point to a more complex operating environment. Companies highlight regulatory complexity, localisation requirements, and increasing workforce-related obligations as key challenges. While overall barriers remain limited in scope, these factors contribute to higher operational demands and require careful planning.
Investment sentiment remains positive but more measured. A majority of companies plan to increase investments, reflecting continued commitment to the market, while others adopt a more cautious approach amid global and regional uncertainty.
Competitiveness in the UAE is closely linked to strong local partnerships, cost efficiency, and brand positioning. The Swedish brand continues to be a clear asset, particularly where it reinforces strengths in quality, reliability, and innovation.
The UAE is widely perceived as a stable and attractive market, with high satisfaction regarding safety, infrastructure, and access to distributors and service providers. At the same time, companies identify areas for improvement, particularly in access to specialised talent, transparency, and aspects of labour market regulation.
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ABOUT THE SURVEY
To assess the opportunities and challenges faced by Swedish companies in international markets, Team Sweden conducts annual Business Climate Surveys across multiple markets worldwide. This year’s survey in the United Arab Emirates includes responses from 33 Swedish companies operating in the country. More than half of the respondents represent industrial companies, while another quarter are professional service providers. The vast majority have been active in the UAE for more than five years.
We would like to extend our sincere appreciation to all participating companies and respondents who contributed to this report. Team Sweden in the United Arab Emirates hopes that the findings will serve as a basis for continued dialogue with UAE authorities and other relevant stakeholders.
