The Conversations Business Partners Must Have Before Entering a Venture in the UAE

When two people come together to start a business, the excitement often overshadows the difficult conversations. The energy is high, the vision feels aligned, and there is trust in the room. Yet, the strongest partnerships I have seen in the UAE were not those built only on shared ambition, but on clarity and honesty about the uncomfortable questions.

I once sat with two entrepreneurs who had known each other for over a decade. They were best friends, ready to launch a new venture. Within six months, they were in dispute. The reason was not bad faith, it was silence. They had never asked each other how profits would be drawn, what would happen if one could not meet a capital call, or who would be responsible for signing the cheques. Their friendship was strong, but their partnership was undefined.

In the UAE, where structuring options vary between mainland, free zones, and offshore jurisdictions, clarity becomes even more critical. The most successful partners begin by asking the hardest questions.

Who really owns what percentage and on what basis. If more investors are brought in, how will that dilute existing ownership. If one partner invests skills while another invests capital, how will that be valued.

What happens if one partner cannot inject further money when the business requires it. Will the other carry the weight or will the defaulting partner’s shareholding be reduced.

Who is responsible for day to day operations, and who takes the lead in strategy. Are partners drawing a salary for their work, or are they only to benefit from profit distributions.

When will profits be distributed and how. Will they be reinvested for growth or paid out to fund personal lifestyles.

How will decisions be made. Which matters can be decided by a majority, and which require unanimous consent. What happens when there is deadlock.

How can one partner exit. Can shares be sold freely, or do the others have a right of first refusal. What if one wishes to bring in a buyer while the other wants to continue building.

What happens if life takes an unexpected turn. If a partner dies or is incapacitated, will heirs inherit the shares, or will there be a buyout mechanism.

And perhaps most overlooked, who owns the intellectual property and brand if the partnership dissolves.

These are not theoretical questions. They are the very issues that have broken partnerships and destroyed otherwise promising businesses. Discussing them early and recording them in a shareholders’ agreement is not a sign of mistrust. It is the foundation of trust. It ensures that both partners are building with their eyes open, not with assumptions.

In my experience, the ventures that survive are those where partners are not shy to ask the hard questions before signing the first document. Conversations about money, control, exit, and succession are never easy. But they are the difference between a partnership that flourishes and one that collapses at the first storm.

If you think, you need to have a third person as a neutral party to finalize these awkward conversations - reach out to our team ASK Consultancy . We handle the most complex situation in simplest manner.