Mohammed Lutfi Kalfoot: Yemeni Honey Business Project in UAE (Sharjah)

This project analyzes a business plan for exporting Yemeni honey to Sharjah, UAE. It begins with an abstract and introduction, outlining the product's appeal and the importance of a solid plan in international business. The project details the target market, marketing strategies, and project plan, emphasizing integrated marketing techniques, market needs, and trends. It explores marketing techniques, packaging, and relevant business agreements between Yemen and the UAE. A SWOT analysis highlights the project's strengths, weaknesses, opportunities, and threats, followed by an in-depth discussion of the challenges of doing business in the UAE, including company ownership, local sponsorship, VAT implications, funding, cultural considerations, and people management. The project concludes by summarizing the benefits of honey and providing references. The project serves as a comprehensive guide for establishing a successful honey business in the UAE.

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Yemeni Honey Business Project in UAE (Sharjah city)
(International Business Management)
Mohammed Lutfi Kalfoot
Lebanese International University
January16th 2021
Table of Contents
Abstract …………………………………………………………………………. 3
Introduction ………………………………………………………………………4
Target Market …………………………………………………………………….4
Project plan ………………………………………………………………………5
Marketing plan …………………………………………………………………. .5
Marketing Strategy ………………………………………………………5
Market needs& Trends …………………………………………………5-6
Marketing techniques …………………………………………………….6

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Packaging ………………………………………………………………………..7
Business Agreements between Yemen and UAE ………………………………. 8
SWAT of Honey's business project in UAE (Sharjah) ……………………… 8
Challenges that might be faced for doing business in UAE ……………………9-11
The benefits of Honey …………………………………………………….12-15
Conclusion ……………………………………………………………………….16
References ……………………………………………………………………….17
Abstract
International trade needs to study and analyze all aspects of business and laws in the host
country. To make a successful investment, you have to choose the right product, the right
target country, the right time, the right marketing method and prepare to face the challenges
and threats that you may face. Yemeni honey is a desirable product in the UAE (Al Sharjah).
This project will analyze the local product and how we can use effective integrated marketing
to make a business project in the Emirates (Sharjah City).

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Honey project in UAE in (Sharjah city)
Introduction
The most important thing in international business is a good plan and good decision.
Starting a small business does not have to require a lot of money, but it will involve some
initial investment as well as the ability to cover ongoing expenses before you are turning a
profit. My business product is The Honey ; this product is chosen due its available resources
in Yemen, its high quality, its benefits, and its high demand in many Arab and foreign
countries. Yemen is well known for its high quality vegetables, fruits, fish, coffee, honey, and
many other products. The Yemeni Honey is known for its high quality and has a reasonable
price, which helps very much to export it to other countries and sell it with good profit.
Target Market
The target market for this business project will be the Yemeni people who live in Sharjah city
and UAE in general as well as attracting other Arab and foreigners who live in UAE to this
product. This place is chosen due to several reasons such as the huge Yemeni community
there and the huge demand for this product. There is also the short destination for
transporting the product from Yemen to UAE.

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Project plan
The UAE business venture will have a small store selling Yemeni honey already packed in
different sizes from plastic bottles. We will import canned and ready-to-use honey from
Yemen, if we want packaging in the UAE, the cost will increase because of the plastic and
packaging prices in the UAE.
Marketing Plan
When opening a new business project in another country you need to come up with good
ways to market your product and make it easy to attract the targeted customers. Integrated
marketing can effectively market your product with a minimal cost. You need to analyze the
market situation in the targeted country, know what effective way to use your marketing,
understand your target's needs and attitudes and finally do not expect that everything will go
as planned because anything can happen especially when you are new in the market.
 Marketing Strategy
The marketing strategy centers on creating and developing an identity that clearly
defines your market niche in terms that benefit our customers.
 Market needs and trends.Since our target, market includes two major segments
Yemeni community, and Arab and Foreigners that are located inside of Sharjah city or
UAE in general. Their most important needs are product quality, price, and delivery
(will be for a specific radios and will have extra charges) in that order.

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 Trends are in this business' favor: the recent study shows that Yemeni people who live
Sharjah city are in constant request for the Yemeni Honey and always complain due
to hardship of finding it in UAE due to the poor quality of the existing products and
high price.
 Through recent research shows that sometimes-advertising costs can easily
overwhelm a start-up company, so keeping marketing simple, creative and cost-
efficient will be challenging. Cost-effective use of marketing is one of our keys to
success.
 Marketing techniques
To reach our potential customers, a combination of marketing techniques will be utilized:
1- Internet marketing: By using social media (Facebook, Watsapp, twitter, instagram…) as
well as creating the Shop's own website, that has all the information about the product and its
benefits. Social media is the most effective tool for marketing this project because almost all
the people in UAE use it and effected by it unlike here in Yemen although we use it but most
of time we ignore its advertisements. By using social media, we can easily reach many
customers and these customers will become our marketers to reach others.
2- Word of mouth: by making conversations anywhere and telling the people about the shops'
product and its benefits. This technique is very effective because the people are easily
effected of what they hear especially if it is about something they are looking for or want to
try it for any reason.

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3- Posters and cards: by sticking posters in busy streets and houses (if allowed) as well as
giving card numbers to the people.
4- Radio: doing advertisement for this business project on the radio can be very effective and
will attract many new customers because most of the people living in the UAE especially
women and elderly men always listen to the radio.
Mention benefits of Yemeni honey and can be used for many family things such as
cosmetics, diet and health issues and many other benefits that will last later in this report is
very important to say in every marketing technology can be very helpful to attract many new
customers. Marketing decisions for the specific, frequency, volume and cost-effectiveness
will be held on a continuous basis with consideration of the results (generated returns).
Packaging
The packaging is very important in every business to safeguard the product as well as giving
off a good appearance with information to the customers. Good packaging has to be
attractive, easy to use/carry and convenience for the customers.
Our product will be in plastic bottles with different sizes to choose (depends on the need and
purchasing power of the customers) with a sticker on the bottles that contains the name, logo,
expiry date, nutrition's benefits and the imported country.
Business Agreements between Yemen and UAE
Yemen has already signed significant international trade agreements and is a member of
numerous regional and international trade bodies. The country’s participation and openness to

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lower trade barriers, both bilateral and multilateral, is indicative of its macroeconomic
philosophy towards fluid business relations. Investors exporting and importing goods for their
businesses will find comfort in the fact that Yemen is a participating member of the World
Trade Organization and has, in its short history, signed investment agreements with countries
including the United States, France, Germany, and much of the Middle East
SWAT of Honey business project in UAE (Sharjah)
Strengths Weaknesses Opportunities Threats
Low cost
production
Lack of seasons for
honey production
Familiar and many
demands of the
product in UAE
(Sharjah)
Needs a local
sponsor
Good for health bad reputation of
Yemeni
Many Yemenis live
in Sharjah who
desire this product
High taxes
Can be used for
body
Similarities of
cultures of Yemenis
and Emiratis
The unstable
political situation in
Yemen
Can be used in
cooking
Easy to market
The best quality of
Honey product
Challenges that might be faced for doing business in UAE
The United Arab Emirates is well known for having a business-friendly environment,
favorable tax structure, and a straightforward legal framework. However, the UAE, like any

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other country, also goes through a set of problems which potentially results in some
challenges while investing in the country. But if you are a career-driven, dedicated individual
who is enthusiastic about the wider scope and outreach this country has to offer then make
sure you build yourself up for these common challenges that come your way while forming a
business in the UAE.
Let’s have a look at few of the most common challenges that are likely to be faced by an
entrepreneur or firm in the UAE:
1. UAE Company Ownership
If an individual wants to start an onshore or LLC (Limited Liability Company) in the UAE,
they’d mandatorily require a local sponsor. This compels an individual to have a UAE
national as a partner who shall own 51% of the ownership. While there are few businessmen
who agree on this criterion; it can be tedious for others to develop trust and reliability.
2. Finding a Local Sponsor
The challenge for an investor is to find a sponsor who is trustworthy as for the most of the
legal business, having a local sponsor is a must. Thus, finding a local partner in the UAE who
would own the major stake in the company and give you the liberty to deal with business on
your terms could be a daunting task.
3. Implications of VAT
In January 2018 the UAE introduced 5% value-added tax, imposed throughout the Gulf
Cooperation Council (GCC). This tax is applied to almost all goods and services except basic
food items, education, and healthcare. Registering for VAT and going further through the
process can prove to be challenging.
4. Project Funding
In case your business is in its commencement phase, it can be a difficult task to obtain funds
from the UAE bank. Because the main requirement for any application for business loans is

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the provision of at least 3 years of audited balances with positive figures and growth
indicators.
5. Cultural Tenets
Islamic culture needs to be addressed before you set up a business in Dubai or the UAE. It
plays a crucial role in people’s everyday lives, in the office and outside. Islamic customs
should be observed and the effects of the Islamic religion on business interactions must be
respected when doing business in the UAE.
6. Communication Style
An individual setting up a business in the UAE must be aware of some of the niceties in
communication they might be expected to know. Men and women are also communicated
with at different tones. The level of formality in the UAE may also be hard to adapt for some
of the expats.
7. Job Market
Once you start a company, you have to hire employees to run a business and the UAE has
certain rules and procedures for the same. This includes the obligation of a company to
provide visas to its employees; an employee is not permitted to work in the company until
they get their visa. Once you get the basic ideas of the regulations followed in the UAE, there
might not be many surprises.
8. Managing Revenue
Even though the UAE can provide a lot of opportunities for widening your business, it can be
equally risky. It was reported by the Association of Chartered Certified Accountants that 82%
of the startups fail as a result of poor cash flow management. Therefore, cost of business
setup and your initial capital requirements need to be managed and then applied.
9. Business Specifics

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One has to have a complete knowledge related to business setup in Dubai or the UAE. Since
there are different regions to set up a business, each one has its certain particulars regarding
business habits and lifestyle. Business in Dubai, unquestionably, has its specifics, and you
need to be aware of them to smoothly proceed with your company setup.
10. People Management
Managing people will have a huge bearing on one’s success in anywhere in the world.
Perhaps the most notable aspect is the level of diversity present in most workforces across the
emirate. As you will be working with people who come from different diversities, people
management can take some learning to be carried out elegantly.
Finding a local sponsor, managing your finances, and getting a clear idea about the various
rules and regulations can be unnerving. And many a time, business requirements that you
come across can be misleading and incomplete. We at Commitbiz not only offer to answer
your questions on the various challenges in starting a business in Dubai but also help you get
through it. Our staff will study your requirements and cater to your needs. What’s more, we
even provide services that can assist you in having your business grow further.
The benefits of Honey :
1. A good source of antioxidants
Raw honey contains an array of plant chemicals that act as antioxidants. Some types of honey
have as many antioxidants as fruits and vegetables. Antioxidants help to protect your body
from cell damage due to free radicals.
Free radicals contribute to the aging process and may also contribute to the development of
chronic diseases such as cancer and heart disease. Research shows that antioxidant
compounds in honey called polyphenols may play a role in preventing heart disease.

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2. Antibacterial and antifungal properties
Research has shown that raw honey can kill unwanted bacteria and fungus. It naturally
contains hydrogen peroxide, an antiseptic. Its effectiveness as an antibacterial or antifungal
varies depending on the honey, but it’s clearly more than a folk remedy for these kinds of
infections.
3. Heal wounds
Manuka honey is used in medical settings to treat wounds because it’s been found to be an
effective germ killer and also aids in tissue regeneration.
Studies show that Manuka honey can boost healing time and reduce infection. Keep in mind
that the honey used in hospital settings is medical grade, meaning it’s inspected and sterile.
It’s not a good idea to treat cuts with honey you buy from a store.
4. Phytonutrient powerhouse
Phytonutrients are compounds found in plants that help protect the plant from harm. For
example, some keep insects away or shield the plant from ultraviolet radiation.
The phytonutrients in honey are responsible for its antioxidant properties, as well as its
antibacterial and antifungal power. They’re also thought to be the reason raw honey has
shown immune-boosting and anticancer benefits. Heavy processing destroys these valuable
nutrients.

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5. Help for digestive issues
Honey is sometimes used to treat digestive issues such as diarrhea, though there isn’t much
research to show that it works. It’s proven to be effective as a treatment for Helicobacter
pylori (H. pylori) bacteria, though, a common cause of stomach ulcers.
It’s also a potent prebiotic, meaning it nourishes the good bacteria that live in the intestines,
which are crucial not only for digestion but overall health.
6. Soothe a sore throat
Have a cold? Try a spoonful of honey. Honey is an old sore throat remedy. Add it to hot tea
with lemon when a cold virus hits you.
It also works as a cough suppressant. Research has suggested that honey is as effective as
dextromethorphan, a common ingredient in over-the-counter cough medication. Just take one
or two teaspoonfuls, straight.

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Conclusion
International business is challenging and risky without good planning and
researching. Nowadays international business became easy to open due to the advanced
technology and economies. UAE is one of the most invested countries in the world. Honey is
a good investment in UAE if it is done in smart way by targeting the right people and done
the marketing in a way that attract other people from different nationalities.
References
https://www.healthline.com/health/food-nutrition/top-raw-honey-benefits

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https://ar.m.wikipedia.org/wiki/%D8%B9%D8%B3%D9%84
https://www.google.com/url?sa=t&source=web&rct=j&url=http://www.dji.gov.ae/Lists/DJIBooks/
Attachments/
45/10.pdf&ved=2ahUKEwjGofbs0aHuAhUD3KQKHWwKA5YQFjAAegQIARAB&usg=AOvVaw05fEmiZA
duWW4HSxuIKWRs
https://www.google.com/url?sa=t&source=web&rct=j&url=https://honey-yemen.com/
&ved=2ahUKEwiiof370aHuAhUWH-wKHVqSBKUQFjAGegQIEBAB&usg=AOvVaw2-
JxhkxrNYaU9M52hOldeV