The Dubai Exit Strategy

00:00:08: So tell us a little bit, what is good exit strategy?

00:00:13: Okay.

00:00:14: A lot of people they just say that if you're starting your business and now you should dive in with the business.

00:00:20: I

00:00:20: love this one there!

00:00:25: It's not always like that.

00:00:27: so sometimes... You are learning something from it but make mistakes.

00:00:34: maybe you're bringing those people who can actually help take care of that business.

00:00:38: And then, when you move on and start something new because it's already been through the whole process now at least this is easy for your starting a new business how to scale up their businesses in certain levels?

00:00:49: If they are facing any kind of problem.

00:00:50: so no one knows if there were mistakes or not making them.

00:00:58: So all about growing a business and then exiting from there.

00:01:02: So usually what happens in exit strategies, A lot of people they just want to exit when the businesses actually failing.

00:01:10: I think this is such wrong mindset and how you come in.

00:01:16: And I think it's such a beautiful thing to leave kind of value with somebody else for something that you have built up,

00:01:26: so... That is the whole crux on your question like when?

00:01:31: A lot people said now i have to live because im facing these problems my business not working So thats not right time.

00:01:37: How

00:01:37: can we sell our businesses?

00:01:39: Yes,

00:01:40: that's not the right time to sell your business.

00:01:42: Maybe there is a time to invest more into their businesses and give them attention and make it work And then obviously you can get something.

00:01:52: If I put myself in this place Am I willing to buy a business which is not making any profits?

00:01:57: Or do you want to buy your business from somebody who was maybe, covering some things up too in order to sell the business.

00:02:08: Hiding

00:02:08: things and not giving it true picture?

00:02:10: obviously don't oughta do that

00:02:11: so

00:02:12: You won't give away that thing with know this right time.

00:02:16: This where i can bring.

00:02:17: So there are two or three strategies.

00:02:19: First of all its just offer some equity.

00:02:24: You can just liquidate some of the equity or you're this exit hundred person out with that business.

00:02:29: So, so do have different strategies over there.

00:02:32: It depends like what exactly they want and most other people Sometimes it would be to them.

00:02:37: They don't exist.

00:02:38: a hundred-person is still keep something trust.

00:02:40: That's also good strategy.

00:02:42: Or sometimes you just exit your synthesis.

00:02:43: I'm done i'm done without business.

00:02:45: if that was my passion?

00:02:50: invest my energy, fund somewhere else.

00:02:54: That's what I love and you just put all of your energies into that new venture And make it successful as well.

00:03:01: Look at the tax point.

00:03:05: What is the most effective exit strategy?

00:03:08: tax wise?

00:03:09: I know its always individual.

00:03:11: for every business owner tax wise, this is going to be a winner.

00:03:17: But what do you think it's the most successful exit strategy?

00:03:22: Taxwise

00:03:23: see tax-wise.

00:03:24: at that moment I cannot tell you like What exactly could we write strategy?

00:03:28: because then That's worth the beauty of advisory.

00:03:31: every situation It's different

00:03:33: and that was

00:03:33: happening in the movement.

00:03:34: Because VAT, we have corporate tax.

00:03:38: So you have to think about a lot of steps over there and each situation is different.

00:03:43: like I cannot just say that now you're exiting And now you don't have to pay any other vats.

00:03:47: know You how to pay your VAT?

00:03:49: You have to be your corporate tax sometimes That copper tax and those taxes the liabilities having transferred.

00:03:56: Sometimes they are not right.

00:03:58: so their different kind of strategies different situations different circumstances And based on those circumstances, you have to come up with the strategies.

00:04:08: One thing I can say that if you're making any kind of profits or any of your investments so in capital gains there's no tax at the moment.

00:04:15: That is one good things like If You are Making Any Kind Of Investments and You Have Any Kind of Assets.

00:04:19: You Are Sending Those Assets Then You Are Making Capital Gains So There Is No Tax On That At All.

00:04:24: But On The Other Side If You Have Businesses So Businesses They Have Continued Liability So that liability still stays there with the business.

00:04:32: And then new ownership has to take that responsibility and continue this same system sometime.

00:04:38: if I'm selling a business, so my portal with the tax authority at that remains the same obviously have to inform authorities within time.

00:04:47: let's see these are the change.

00:04:51: And once that change has been made, so obviously the whole obligation has now stayed with their company.

00:04:57: That's not going well with the seller and apart from that if you're making any different kind of investments or even exiting form there.

00:05:06: So at the moment There is no one strategy which I can say.

00:05:10: this is only a strategy which suits everybody.

00:05:13: No such strategy.

00:05:15: Let me pick your brain a bit on the tax development inside the UAE and there's lot of Middle East countries that have developed their tax strategies.

00:05:29: Me since two thousand twenty-two here, tax wise as well.

00:05:34: so I was like in heaven not being you know, proofing every step on a receipt kind of way as I was used to do this from my German background.

00:05:50: However... ...I were still keeping it in my head which actually benefited me later because i wasn't front-of the game for everybody who was like uh oh what now?

00:06:02: and then said yeah that's how i'm used to doing it And i knew how too when.. ..i was very quick picking up.

00:06:09: However, what you think is the development in total about taxes within the Middle East especially after this period of tension that we undergo here since February.

00:06:26: The first tax which came and the famous one everybody knew obviously had some other taxes with a lot people they know now on certain industries.

00:06:35: But the general text that was VAT.

00:06:39: And VAT has evolved a lot since then, right?

00:06:43: I still remember the first law That came out with maybe like thirty-five pages or forty pages and now if you see we have more than maybe three hundred clarifications and guidance is available on the tax authorities website.

00:07:00: so it means This has become so much complex now.

00:07:04: So the law, it was just addressing the main issues and how that's going to work?

00:07:10: What is a framework who this applicable too?

00:07:13: So few things like that.

00:07:14: That's how the law is always And then there were clarifications guidances on them Each in every aspect of business because we have different industries.

00:07:26: each industry works differently.

00:07:29: Service industry works differently, trading works differently.

00:07:32: Hotel and hospitality they have different kind of workflows that are different kinds of procedures.

00:07:38: so now you have to address those.

00:07:41: I'll give an example.

00:07:43: nobody knew if your building a mosque within UAE what should be the bad treatment?

00:07:50: And then a whole clarification came on that.

00:07:53: What exactly you have to do?

00:07:54: Real estate was one of the very complex industries, because there are lots of transactions happening over there.

00:08:00: So

00:08:00: basically to build a mosque is also an... You

00:08:03: can claim your input tax.

00:08:07: So there are a lot of things which is going on.

00:08:09: They're not just an example,

00:08:12: but let me get this in and understand.

00:08:15: so to build the mosque it's actually under the law of real estate tax wise that's

00:08:22: different authority.

00:08:24: There's a different treatment over there.

00:08:26: So this example I'm giving you, that the real estate lot of clarifications came in like how do deal with bear land and residential properties or commercial property?

00:08:39: So if you have a different kind of land, or different kinds of buildings.

00:08:45: How do we deal with such situations?

00:08:47: A lot of things happen.

00:08:48: so yeah We can say like that has changed a lot since two thousand eighteen.

00:08:52: There were lots of developments and similar with copper tax So corporate taxes in fact from twenty-twenty three And since then we can see like a lot of clarifications I've come in Especially now some If your unable to register yourself for corporate tax, but there has to be a genuine reason for that.

00:09:15: It's not like oh I didn't know about that and it always said that ignorance of law is an excuse.

00:09:23: so if you don't

00:09:24: know... Ignorance of Law is not an excuse

00:09:28: right?

00:09:28: So i didn't Know That!

00:09:29: You

00:09:29: Didn't Know.

00:09:30: But That Law Exists.

00:09:31: Okay It Exists.

00:09:33: You have To Educate Yourself Or You Need Those People Who Can Tell You.

00:09:37: Again, coming back to the right advisor.

00:09:39: Yeah So

00:09:40: if you have that right as visor so that's why I tell you at The Right Time said this is a time when You Have To go and you have to register yourself.

00:09:47: yeah But you know i think the UAE in total When it comes to Texas Is so custom orientated?

00:09:55: I Think It's Such A wonderful Thing And I Feel Here in such a pleasure to deal with taxes, where I was in Germany always felt like being robbed.

00:10:06: You know?

00:10:07: Like kind of because also whenever you wanted to put something and you've been treated like an unrobber yourself... ...like a criminal person who has done something forbidden to claim.... And here it's totally different!

00:10:26: polite and nice invitation to educate yourself in a tax portal via WhatsApp or SMS.

00:10:34: You get reminders, please you only have fifteen days.

00:10:37: so put your feelings in something like that!

00:10:40: And even I had the client who came after they haven't gotten any kind of reminder from the Tax Authority.

00:10:50: They found it out when they wanted actually renew their business license.

00:10:55: they was totally blocked because the tax authority blocked all and everything.

00:11:00: Yeah, then it just only found out that the whole emails from the Tax Department has went to spam.

00:11:09: They were able to prove this.

00:11:11: yeah And

00:11:12: The Whole Files Were Waved.

00:11:16: now I'm very I'm very amazed about this humbleness.

00:11:21: Exactly, that's UAE.

00:11:22: it is very much supportive if you want to do any kind of business so It provides you with the environment.

00:11:27: or just a small example like if i am an expat and coming newbie here And I wanna grow my network.

00:11:35: So If To Grow That Network If That Takes You Five Years In Any Other Country That might take only one month.

00:11:44: One months here, coming to network.

00:11:45: this is one of your things.

00:11:47: how important you think it's networking.

00:11:50: we are in the desert.

00:11:51: We need much more water To send our entrepreneurial caravan out there.

00:11:56: So let me know You have a golf Network?

00:11:59: You have other networks.

00:12:01: How do you build your networks and what?

00:12:04: What isn't total about your networks?

00:12:06: Let me know.

00:12:07: Yeah I'm part Of different networks.

00:12:09: yes golf is one of them, bike riders paddle just you know like some kind of business networks.

00:12:21: So when I started my business and I said that I was going to start it all off a certain score with complete lockdown.

00:12:27: so now at that time nobody knew me in the market and what kind of value I can add in anybody's business.

00:12:39: So nobody knew about me, And that when I realized how important it is to have a network That not just for business owners, entrepreneurs Even if you are employed person You're working with any company so even for you It's important to have the network.

00:13:03: Then i started exploring different networks And I started loving at that meeting different people, learning from their perspectives.

00:13:10: Learning from there point of views and that has actually helped me a lot in growing my business because you meet people like they're sometimes complaining about their businesses or sometime discussing the challenges.

00:13:25: So you learn from their experiences, and that's where you don't make mistakes in your own business.

00:13:31: Every network taught me something different And obviously this is what I say to a lot of people You have to spare some time If you have that right team who is allowing you to go out and meet these people, And thats where your build all of the network.

00:13:52: That's what you're doing business development Right?

00:13:55: if any businesses coming through Any referral So Thats The Business Which Is Staying With You The Most Because The Trust Has Already Been Built By Being With That Person giving that person, kind of a trust.

00:14:17: That you are the right person to be referred and You're The Right Person To Deliver That Particular Service.

00:14:23: Or I Would Say That You Are The Right person To Provide A Solution Of That Problem Because Selling Services Is All About Selling Solutions.

00:14:32: That's True.

00:14:34: Selling solutions And Not Even Selling But You

00:14:39: Know

00:14:40: Providing

00:14:41: Those Solutions.

00:14:44: It's just that if you are facing any kind of problem, so I'm the cure for that.

00:14:49: You know what?

00:14:50: I always also find as a really big misunderstanding in Dubai about networking That lot of people think If i have to network and jump from one event To The Other Event And they don't look into the right way Of Networking They only like What We Say Sell Into The Room.

00:15:10: I was Like Trying the most money out of it.

00:15:14: But, It is rather a situation where you make connections that build trust not only for you to be known but also people who know about yourself and those people.

00:15:36: Then they can spread the word themselves.

00:15:39: So it's the best thing if somebody says, I heard of this Kaleem?

00:15:43: I heard off this Angela?

00:15:44: You don't know them personally but i heard from him and that is the best things.

00:15:49: you're doing something really right in part on network.

00:15:55: Very

00:15:56: true!

00:15:56: I have seen a lot people who would say...I didn't get any business.

00:16:00: so now im not going back.

00:16:03: Exactly, that's

00:16:03: the mistake.

00:16:04: There is a very big mistake here.

00:16:06: exactly.

00:16:07: so you You cannot just go anywhere and you expect any kind of business because those people they don't really know you.

00:16:13: And then the services you provide?

00:16:15: I'm not just alone in this market Because we have a lot of suppliers who are providing similar kinds of services similar kind of products.

00:16:23: So i have to build that kind of trust or show them why how am different and Why should work with me.

00:16:32: So that's the most important aspect, a lot of people they actually neglect and I'm always there going in for some kind of benefit.

00:16:39: Yeah sometimes it said if you give You get not to get And then you give giveers gain kind of philosophies.

00:16:49: so yeah A Lot Of People They Have To Understand That If i am Going Into Any Kind Of Networks or have to build those bonds first?

00:16:56: So If You Have Those Bonds and Those Bons Those Connections Will Automatically Convert into Money.

00:17:02: That's true.

00:17:04: No, that's also an investment?

00:17:06: Yeah it is the

00:17:09: development.

00:17:10: so you're investing your time and that time will definitely build something for you in the future.

00:17:15: Kalim what Is The Best Business Advice You Ever Got?

00:17:24: I got So many devices because thats What i used to do.

00:17:28: Obviously every business owner, he needs or she needs an advisor.

00:17:32: Or somebody who and that person trust this is the person.

00:17:36: if I go to that person And i'll definitely get the right advice.

00:17:41: So maybe for me it was don't rush

00:17:45: Don't rush?

00:17:46: Yeah If you're making any kind of decisions so You have think about decision.

00:17:50: That's

00:17:51: wise because I had philosophy slowest than new expensive.

00:17:57: This is what I'm saying.

00:17:58: Don't rush does not mean that delay it for a year

00:18:02: or two years, okay?

00:18:03: Take your time think about that.

00:18:06: You have to bring in different probabilities That if i am taking this decision and this could be the result And If Im Taking This Decision This could be the result.

00:18:15: Like in golf,

00:18:16: you

00:18:17: give every ball this same attention and you have to make an empty dry one.

00:18:26: It's not always

00:18:26: the same results

00:18:27: but I'll try it for me.

00:18:29: Golf is

00:18:30: unpredictable though.

00:18:31: so yeah that's one of things.

00:18:33: if you want take any conversations obviously how do think about them?

00:18:37: Give us a second thought once you reach your conclusion.

00:18:39: like that reserve or conclusion just go Right.

00:18:44: So I think that could be one of them, otherwise there's a huge list and lot things out there which entrepreneur they should take care off when running the business.

00:18:53: but yeah this is going to be

00:18:55: on of them.

00:18:56: this question for all my guests.

00:19:00: I wanted to know, you are a father and the husband?

00:19:04: And when you're so successful in your entrepreneurial life it's important that we take our partner along these journeys somehow.

00:19:14: otherwise if you grow apart on some places how do you manage to have the same mindset or understand that you hear in the podcast, and this is something that you also put into your network or to your business.

00:19:35: How do you manage to stick together?

00:19:39: And be on the same level not to crawl apart?

00:19:43: I'm very interested.

00:19:46: it's always Very much important.

00:19:49: Your personal life has an impact on your professional life?

00:19:53: Absolutely, I think divorce and loss of a person in the family is the most impactful part where business can totally be upside down or even getting into bankruptcies.

00:20:09: because

00:20:10: if you have a disturbed personal life that obviously has an effect on your thinking on your mindset, and positivity.

00:20:18: And if you're not taking that mind set or positivity into business That's definitely going to impact badly onto your business.

00:20:25: So yeah it is always said You can do all of these things If you know how.

00:20:30: time management Right?

00:20:33: Time management is the essence Of a work-life balance.

00:20:37: so this Is when you have to work On Your Business.

00:20:40: This The Time Which You Have To Give To Your Family To Your Children To Your Spouse And that's how things, they work in a positive way.

00:20:50: That's how the work properly.

00:20:52: I found this always very difficult to coming for example from my training or form an event where i learned so much and My partner was not with me that is so difficult To bring him to the same level of growth that you are getting out of this event, for example or training course whatsoever.

00:21:16: And this is the one point where I think a lot of things growing apart not necessarily to have time with each other towards that movie but and grow the same kind of mindset.

00:21:35: Because sometimes you are fast, your partner cannot be that fast because one or two people has to maybe have another schedule staying at home.

00:21:50: Matching the pace is important And I think it's understanding as well.

00:21:55: So when other person definitely has take lead See, I'm leading the and these are my responsibilities.

00:22:00: And that's how i have to fulfill your responsibility.

00:22:02: is another person understand that?

00:22:04: yes To fulfil this responsibilities you have to do some certain things and those certain things require Your attention?

00:22:11: Your time your effort uh...and then This all about understanding.

00:22:16: so if you're understanding like sometimes I used to call people That see You Have to come in You have to turn this even.

00:22:20: it's really hard for us because we have to go and, you know like... We have to spend some time with the family obviously.

00:22:26: Yes!

00:22:26: You have to spent your time with a family but if you feel same.. Like I said this is an opportunity cost But obviously....You don't have do anything at the cost of leaving your family behind.

00:22:43: So its always about that compromise so that Your partner has to understand what exactly is happening.

00:22:51: And if somebody's out and you see those results, then why not?

00:22:57: I think it's always a good solution to just take your partner along at these events that grow you or networking events, but you are having the same level.

00:23:05: You spend time with each other and grow also the same way together.

00:23:09: And this is something that i really love about Dubai because you have the opportunities of nannies support family support in it out of all kind of regions That you wanted to be supported in.

00:23:24: even So, yeah.

00:23:28: Everything is here everything even those professions you don't really get in other countries?

00:23:32: Yeah exactly so that's one of the parts That You Can Actually Implement Here In Dubai.

00:23:38: I think this Is A Beautiful Thing.

00:23:40: Where In Germany i see in Europe You Stretch Yourself Apart What You Would Give As Advice To Somebody Who Says I Have Problems With My Private Life to Manage my Business to actually have a good time management and to have help in the background.

00:24:00: And too, of course maybe take yourself together in this event or whatever is responsible for business?

00:24:08: I think that's a very good point That sometimes you have to engage your partner into your activities at... This what i'm doing right?

00:24:16: I am not just wasting any time so whatever time spending outside the home obviously has

00:24:23: It's something for the family.

00:24:26: There is a ROI in that, right?

00:24:27: So this everybody has to understand.

00:24:29: so it's from both sides.

00:24:31: This one thing is from both side.

00:24:33: I cannot just say if i'm putting more efforts into both sides like In my professional life and personal life And other person not putting similar kind of effort even then doesn't really work.

00:24:42: So yeah its all about understanding between partners.

00:24:44: Both have to understand What kind of support and to what extent I have to go on how to support the other person, obviously then things will work for you.

00:24:54: Otherwise if your not supporting eachother thing would fall apart.

00:25:01: That's very true Kaleem And let me know a little bit more as in preparation this interview i had actually also found out that looking for the one or other investment, what do you think?

00:25:18: For our listeners out of a tax point-of-view.

00:25:21: What is basically good thing to invest at this moment?

00:25:26: Again very subjective matter because different people they have different interests and for me nowadays I can say like my interest is e-commerce.

00:25:36: And i want to invest in e-commerce , i wanna build an e-Commerce platform because I've felt e-commerce if any kind of situation is happening.

00:25:49: So still you need something, right?

00:25:54: You just pick up your phone or whatever you want and that will be delivered to you in no time especially within UE.

00:26:02: so... That's one thing which i'm definitely exploring.

00:26:06: Apart from that, nowadays I know a lot of people are exploring F&B.

00:26:11: So restaurants and hospitality side.

00:26:13: they want to explore that.

00:26:15: And then garments.

00:26:18: probably That's why there should be a lot more people exploring garments because everybody has to wear clothes especially in Dubai.

00:26:25: this kind of competition which will look good

00:26:28: Interesting.

00:26:29: so we see you investing on one of the other pillars?

00:26:33: Yeah most likely

00:26:34: Oh, okay.

00:26:34: And

00:26:35: yeah if you're there and looking for any kind of partners reach out to me then we can explode some energy.

00:26:39: Okay To bring my audience where would he find you?

00:26:44: Let us know a little bit about how to get in contact with you.

00:26:48: certainly We put everything into show notes but it's also good to know from your side.

00:26:55: So if you want really know about me.

00:26:57: so LinkedIn is the platform You should go look up.

00:26:59: I'll look for me and maybe you will find My whole journey.

00:27:04: Okay, it's there like right from the beginning.

00:27:06: What exactly I've been doing?

00:27:07: so everything is there.

00:27:09: So you would be powerful nowadays, right?

00:27:12: That's

00:27:13: what I say to most of people that you have to work on your LinkedIn profile especially and because that LinkedIn profile gives away the message like what kind of person you are.

00:27:22: Yeah, yeah

00:27:23: if we have those similar interests obviously a lot people they will come now uh People that know I play golf so they approach me And just want to play golf with me.

00:27:32: That's where our connections are building.

00:27:35: Then some other people They know i'm motorbike rider as well because I'm a lot of people they connect with me, like let's go for a bike ride and we made a lot good connections.

00:27:46: So different kind of interests.

00:27:47: so if you know that you have similar kinds of interest in swimming or hiking If there are some people who start approaching you That is what i am giving on my profile.

00:28:01: This person this person these are my interests And thats how can actually help build your business, your network and how it can help you.

00:28:11: And everybody can get to know about you from that platform.

00:28:15: so

00:28:17: Very good.

00:28:18: So I'm looking forward to play a round of golf with you at one day and seeing where it goes, what kind of business advice we are making as a ping-pong ball there?

00:28:32: Thank you for being in my podcast.

00:28:34: It

00:28:35: was lovely to be here on this platform cleaner!

00:28:39: And i wish you good luck.

00:28:41: thank you so much

00:28:42: pleasure.

00:28:45: That was Mohammed Kaleem.

00:28:46: If you wanted to get it, know more about him You find everything in the show notes In the info box and please share this episode if you like It And maybe you can help even with this episode somebody To find a right advisor here in The Text Matters.

00:29:02: So we are looking forward for you to support This channel.

00:29:05: Have A Good Day!