Partnership Proposal · Joint Venture
LB Lab. Middle East
A proposed joint venture between Naxsis and LB Lab to bring the professional skincare portfolio to the Gulf and Egypt — equal partners, starting in the UAE.
A proposed joint venture between Naxsis and LB Lab to bring the professional skincare portfolio to the Gulf and Egypt — equal partners, starting in the UAE.
A new Free Zone Establishment would unite LB Lab's products and know-how with Naxsis's in-market operations — sharing the launch cost, the revenue, and the upside equally as the venture scales across the region.
The partnership would be established as a UAE Free Zone Establishment — suggested name LB Lab. Middle East — giving both sides one clean vehicle to contract, invoice and grow from, market by market.
A Free Zone entity gives the venture a recognised regional base with straightforward foreign ownership, a clear contracting and invoicing structure, and a foundation that extends naturally from the UAE into Saudi Arabia, Egypt and the wider Gulf as each market opens.
Both partners hold the venture equally — a true 50/50 joint venture.
Two simple principles govern the UAE phase — an equal split of both the early investment and the income it generates.
Net revenue is split equally between Naxsis and LB Lab. This applies to the UAE for now; the economics for Saudi Arabia, Egypt and the remaining markets follow the same logic and are agreed market by market, referencing the forecasts in the main business plan.
Each partner funds half of the venture's expenditure for the first twelve months, paid on a monthly basis — sharing the cost of the launch year until the business begins to carry itself.
Neither side is a vendor to the other. LB Lab and Naxsis put in complementary contributions — product and operations — and take out an equal share of what the venture earns. The structure keeps incentives aligned: both partners win only when the venture sells.
Figures and forecasts referenced here live in the main business plan ›
The joint-venture model sizes both the prize and the launch cost. Revenue is shared equally as it grows; the first twelve months of expenditure are funded equally to get there.
| Product Category | Price (AED) | Mix | Y1 Rev | Y1 Units | Y2 Rev | Y2 Units | Y3 Rev | Y3 Units | 3-Yr Rev |
|---|---|---|---|---|---|---|---|---|---|
| Hydrodermabrasion SerumsLB Fusion · 3 SKUs | 900 | 25% | 252,281 | 280 | 454,106 | 504 | 635,748 | 706 | 1,342,135 |
| Microneedling Ampoules6 SKUs · 5×10 ml | 850 | 35% | 353,194 | 416 | 635,749 | 749 | 890,049 | 1,048 | 1,878,992 |
| Chemical Peelings7 SKUs incl. AZELA, GLYC, SAL… | 580 | 25% | 252,281 | 435 | 454,106 | 783 | 635,748 | 1,096 | 1,342,135 |
| Peel-Off Masques8 SKUs · 180 gr | 210 | 15% | 151,369 | 721 | 272,464 | 1,298 | 381,450 | 1,817 | 805,283 |
| Total — all categories | — | 100% | 1,009,125 | 1,852 | 1,816,425 | 3,334 | 2,542,995 | 4,667 | 5,368,545 |
| Operating Expenses | Y1 · 2026 | Y2 · 2027 | Y3 · 2028 | 3-Year |
|---|---|---|---|---|
| Sales Team · 6 reps × 84K | 810,000 | 810,000 | 810,000 | 2,430,000 |
| Marketing & Sampling | 100,000 | 150,000 | 200,000 | 450,000 |
| G&A / Logistics | 40,000 | 50,000 | 60,000 | 150,000 |
| Total OpEx | 950,000 | 1,010,000 | 1,070,000 | 3,030,000 |
Both partners fund the venture's first twelve months of expenditure equally — roughly AED 950K of launch outlay (a full year of operating cost), split 50/50.
Paid monthly. After the launch window, the venture is funded from its own revenue.
Source: LB joint-venture model. This forecast is intentionally more ambitious than the standalone UAE business plan base case (3-yr AED 4.89M). Figures are management projections in AED, not guarantees of future performance.
Because LB Lab supplies the goods free as part of the partnership, the venture carries only its operating costs — so it is profitable from the first year, and operating margins expand toward ~58% by Year 3. Every dirham of profit is shared 50/50.
| Profit & Loss (AED) | Y1 · 2026 | Y2 · 2027 | Y3 · 2028 | 3-Year |
|---|---|---|---|---|
| Net Revenue | 1,009,125 | 1,816,425 | 2,542,995 | 5,368,545 |
| Cost of GoodsSupplied free by LB Lab — in-kind | — | — | — | — |
| Operating Expenses | (950,000) | (1,010,000) | (1,070,000) | (3,030,000) |
| Operating Profit (EBIT) | 59,125 | 806,425 | 1,472,995 | 2,338,545 |
| EBIT margin | 5.9% | 44.4% | 57.9% | 43.6% |
Operating profit is split equally, just like revenue. With the goods supplied free, the venture profits from Year 1 — and each partner's share grows quickly as revenue scales on a largely fixed cost base.
Both partners co-fund the first twelve months of operating cost; thereafter the venture is funded from its own revenue.
Under the partnership, LB Lab supplies the goods at no cost to the venture as its in-kind contribution, so the venture carries only operating expenses. Operating profit (EBIT) = net revenue − operating expenses, shared 50/50 between the partners. Revenue and operating-expense figures are taken from the joint-venture model; all are management projections in AED, not guarantees of future performance.
The work divides cleanly. LB Lab supplies the portfolio, the materials and its share of the funding; Naxsis runs everything on the ground in the UAE.
The UAE is the proving ground, with terms defined here. The remaining markets open in sequence, each on terms agreed as it comes into scope.
Launch market. Revenue split and responsibilities defined in this proposal.
Next priority market, on terms agreed when it opens.
Follows Saudi Arabia, referencing the main-plan forecasts.
Wider Gulf countries phased in thereafter.
For the UAE, the split and responsibilities are defined. Economics for the remaining markets follow the same partnership logic and are agreed as each market comes into scope, referencing the expected revenues in the main business plan.