Tim Elliott
Welcome to the UAE’s first regular legal podcast. My name is Tim Elliott, and I’m here with the managing partner of Yamalova & Plewka, Ludmila Yamalova. Good to see you.
Ludmila Yamalova
Good to see you too, Tim.
Tim Elliott
This time, we’re going to dive into the most common mistakes businesses make when they start up in the UAE. I’m looking forward to this—what it truly takes to build a successful venture. Let’s set the stage, Ludmila. Share some of your own experiences starting your practice. I know it was wonderfully professional from day one, don’t get me wrong, but how did it compare to others building their businesses around the same time?
Ludmila Yamalova
Yes, today’s topic, as you said, is about startups. It’s less about businesses coming into the UAE—established businesses from outside—and more about someone having a new or novel idea and trying to launch their own startup. This is a topic close to my heart because I’m not just a lawyer with over, my goodness gracious, more than 25 years of experience, but also someone who has built and run my own law practice for more than 16 years now.
The insights I’ll share today come not only from my own experiences and challenges but also through those of my clients. It’s a fascinating topic, and much of what I want to discuss today comes from starting my own practice and comparing it to the various experiences of my clients over the years.
Tim Elliott
Let’s walk back to when you first set up. When you first decided, “Right, this is what I’m going to do,” what were the steps? What led to those initial moments?
Ludmila Yamalova
It was back in 2009. I had been in the UAE for about a year, but I didn’t have many friends or connections. At that time, the country was still in the financial boom—just before the global financial crash. There was a lot of excitement and optimism in the UAE about businesses and ideas. Everyone seemed to have a novel idea and was convinced their business would succeed.
At the time, it was fairly easy to make money if you were in the right industry. Many of my peers who were also starting out appeared to be building successful businesses. However, most of them had been in the UAE much longer than I had. They were more connected and often funded by those connections, which meant they were building businesses with other people’s money.
I didn’t come to the UAE planning to set up a business—it sort of happened organically. But as I went through the process, I knew I wanted to build a business within my means—one that I could fund myself without relying on external investment.
This approach made my struggles unique. Operating within your means means you know exactly what you have and what you can’t afford. There’s no cushion, so you can’t exceed your limits. At the time, it was interesting to see some of my peers growing rapidly with flashy facades, but I chose to scale only as much as I could afford.
Tim Elliott
How did that decision affect your business in the long run?
Ludmila Yamalova
It kept my business more sustainable and grounded. But it was also challenging because every dirham I spent, I felt. I still feel it today. Whatever I wanted to invest in—whether a website, IT infrastructure, or an office—required funding that came directly from what I was generating monthly.
Sixteen years later, I’ve seen many of those flashy ventures, which were set up with big PR campaigns, fade away or close down. This doesn’t just apply to my personal peers but also to clients I’ve worked with over the years.
I’m glad I’ve done things the way I have. My business hasn’t grown as quickly as others might have in my place or under investor-driven strategies, but it’s been sustainable. It has allowed me to weather storms like COVID because we’ve remained financially grounded—no loans, no liabilities, just measured growth.
Tim Elliott
You’re not someone who goes for extravagance, are you? I’ve known you for what—12, maybe 13 years?
Ludmila Yamalova
Yes, it’s been about 13 years. I think we met shortly after I arrived here, at Dubai Eye, in the corridors of a radio station.
You’re right, though—I’ve never been about extravagance. We’re not the type of team to quadruple our office space, buy expensive art, or drive flashy cars. Our approach has always been measured.
Tim Elliott
That common-sense approach—living within your means—is a really sensible way to build a business. But it’s not easy, is it?
Ludmila Yamalova
Not at all. Trust me, I’ve had my lows—plenty of them. When you see other businesses making significant investments, it’s hard not to feel the pinch. Even something as basic as building a website seemed monumental 16 years ago.
Back then, there weren’t as many affordable, ready-made solutions as there are today. Everything had to come from scratch, and I wanted the website to reflect who I was and what my firm stood for. That meant doing everything myself—from writing about the firm to creating profiles for team members and outlining our services.
At the same time, others had the budgets to hire copywriters, developers, marketers, and branding experts. They had the financial flexibility to scale quickly, while I was carefully allocating every dirham.
Tim Elliott
Why do so many entrepreneurs overlook due diligence?
Ludmila Yamalova
It’s one of the most fundamental mistakes startups make. Many founders rely on superficial promises and representations—especially from persuasive individuals. People want to believe in the potential of an idea and get swept up in the excitement.
In the UAE, this tendency is amplified by the overall atmosphere of optimism and rapid success. The country’s growth and opportunities create a “gold rush” mentality, making it easier for people to overlook the crucial checks and research they should do before diving in.
Tim Elliott
What are the red flags investors should look out for?
Ludmila Yamalova
Some common patterns include founders who dodge questions, provide vague answers, or maintain a shroud of secrecy. Another red flag is when everything sounds too perfect, masking potential issues beneath the surface.
Startups that focus heavily on appearances—lavish offices, grand marketing campaigns, or large-scale hiring—without a strong foundation are another warning sign. These behaviors often divert attention from deeper issues and create an illusion of control or success.
Tim Elliott
So what’s the takeaway for founders and investors?
Ludmila Yamalova
For founders, know your limits and seek professional advice. Build thoughtfully, prioritize substance over appearances, and avoid cutting corners. For investors, ask the right questions, verify details, and ensure transparency. Building a business isn’t about shortcuts—it’s about doing the work and being prepared for challenges.
Tim Elliott
Great advice. Ludmila Yamalova is the managing partner of Yamalova & Plewka, a legal firm here in Dubai. Ludmila, thank you for sharing your insights on Lawgical.
Ludmila Yamalova
Thank you, Tim.
Tim Elliott
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