Business Services

Factors To Consider When Investing In A Foreign Country

Most countries would warmly welcome foreign investors as increases the foreign income of the country. However, as a foreigner we have more to lose than the country invested in case the investment does not go as anticipated. Hence much thought should be given before you choose the country you like to invest in.

Economic stability

This is one of the main factors you should consider. It is not a good idea to invest in country that is heavily in debt. Needless to say that a Dubai business setup in a country with a stable economy is a wiser choice than one that is not.

Political stability

This is sometimes referred to as the country’s willingness to pay back its debts. Sometimes a country with a strong stable economy may not be very hospitable to foreign investors. Even if you are successful there might be laws that prevent the growth of your business or prevent you from reaping the full benefits of your effort.


Another factor that will define the success of your business is whether the country of your choice has a sufficient market for your product or service. You can easily find a solution to this problem by doing sufficient research and going through statistics. If you are serious about your plans, perhaps an extended visit to the country will give you better insight to the actual proceedings.


The scope of your business and everyone included in your venture must be comfortable under the circumstances they need to work in. You may choose to employ nationals from your home country or give opportunities to local employees. In the former case your employees must be able to adjust to the culture. For an instance if they are unable to adhere to the cultural norms then they will either become frustrated or perhaps get caught to local authorities performing illegal activities.

You must also consider the product or service your hope to supply. There is a better opportunity for development if your product or service is socially acceptable. For an instance, if you are interested in opening a distillery or brewery then setting up a business in Dubai may not be your best option.

Capital investment

The cost of living and the cost of setting up a business will vary greatly depending on the country you choose. Some countries encourage foreign investors by proving loan schemes some have very rigid rules that must be followed. You will have to consider the cost of living as well as other expenses before you officiate anything. Foreign investment is a huge risk, but if done with care it will offer a massive payback.