The UAE has long remained an ideal ground for new businesses. After recovering from the post-covid slump, the country is now enjoying near-term economic growth. Further, the country is also expected to have diversified and inclusive growth under the UAE 2050 Strategy, which will open up better economic prospects as global decarbonization efforts are underway.
As the face of the UAE market changes for the better, many existing businesses may find it hard to keep up with the pace and struggle for a variety of reasons. Businesses will have specific factors that contribute to their difficulties, which can vary depending on the industry, market conditions, and other factors. By taking timely decisions and actions to understand and address these issues proactively, businesses can avoid or overcome difficulties. This is where legal consultants can help support your business.
A lot of times, businesses face challenges that can be easily solved with sound legal advice. As a result, legal departments can play a vital role in assisting struggling businesses by providing various types of support and guidance. In a country like the UAE, with its location and dynamic markets, working closely with legal consultants is the rational way to keep your business afloat in the worst-case scenarios. By outsourcing legal services from a reputed law firm, businesses can access legal expertise and support while freeing up internal resources for other critical tasks cost-effectively.
Here are some ways in which legal departments can assist struggling businesses:
Assess the legal and regulatory landscape
Over the past few years, the UAE’s business landscape has evolved rapidly, which has presented certain challenges. Many business innovations that have found its root in the global market have contributed to local challenges, which can be considered as certain nuances that cropped up due to the country’s position as an innovator, especially in the MENA region.
Thankfully, the UAE’s legal system is agile and able to quickly mend and mold its ways to meet the needs of the dynamic global market. At the same time, new and existing businesses in the country may find it hard to navigate the waters without the assistance of expert legal consultants.
Legal departments can help struggling businesses assess their legal and regulatory compliance obligations. Corporate lawyers have the right skills and expertise to review the business’s operations to identify areas where legal or regulatory issues may arise, and guide how to address those issues.
Negotiate with creditors
Businesses require capital for keeping the show running. Often, loans help keep things on track when cash is running low. But, if the business hits a snag along the way and finds it hard to settle its debts or acquire more funds, what is the best way to go about it?
While negotiating a debt settlement on your own is not easy, working with a law firm can save you a lot of time and money and give you feasible settlement solutions.
Law firms can also help struggling businesses negotiate with creditors and lenders to restructure debt, modify payment terms, or obtain forbearance agreements. Financial lawyers also assist the business to explore alternative financing options.
Provide employment law guidance
The UAE’s labor laws are in place to effectively balance the power between the employer and employee, ensuring that both parties are equal partners in workplace negotiations. The laws, if followed correctly, can safeguard both employees and businesses during a challenging phase.
This is where legal consultation can help. Corporate lawyers in Dubai are also equipped to guide the HR team on employment law issues, such as layoffs, furloughs, and employee benefit reductions, to help struggling businesses navigate these challenging situations while minimizing legal risk. This helps the companies run and retain their operations without taking a hard blow during tough times.
Advice on contracts and agreements
Entering into legally binding contracts and agreements is part of running a business. To safeguard your business priorities, it’s important to manage your contracts and relationships cautiously. A lot of times, contracts prove to be complex, requiring legal and professional advice to help you fully understand their terms. Hiring legal consultants can help you handle these situations better and take the needful steps.
Legal teams work closely with the business development teams to review and advise on existing contracts and agreements to determine whether there are any opportunities to renegotiate or terminate agreements that are no longer viable for the business.
Manage legal disputes
Disputes can arise in business at any point. Presently, the UAE has strong and stable laws and institutions in place to resolve disputes for both foreign and domestic investors. The country’s courts are well-adjusted to dealing with foreign party disputes, with quick proceedings and a high degree of privacy.
If your company has come across a legal dispute and is struggling because of the same, working with a reputed law firm can help you resolve the situation in the best possible way.
Law firms can assist struggling businesses in managing legal disputes, whether they are related to contractual disputes, employment law, or other matters. They can help the business evaluate the merits of the dispute, develop a legal strategy, and work with outside counsel to achieve a resolution.
There are many reasons why investors from across the globe consider the UAE a great place to run their business. The political stability and economical buoyancy have long helped the country attract business and provide the necessary ground for it to flourish.
At the same time, there are supportive institutions, both private and public that can help businesses traverse through tough times. At Fichte & Co, our legal consultants can help struggling businesses manage legal risks, improve their financial position, and emerge from difficult times stronger and more resilient. If you are a business in need of assistance, reach out to our law firm today to consult with our corporate lawyers.