In Dubai, the most common and in-demand businesses always are Restaurants, Real estate, and car rentals. It is mainly due to the large ex-pat population here who have relocated for jobs from their home country.

Hence, there are immense opportunities for businesses while catering to the basic requirements of the Expat population in the UAE.

Type of Industry Sectors for Setting Up a Company in UAE

With growing digital adoption and internet penetration in the region, there are certain booming businesses in the digital space like eCommerce, Edu-Tech, Digital Marketing Agencies, etc.

Then there are Essential & Lifestyle Services businesses that receive great traction and demand which are Cleaning Services, Logistics Services, Technical Services, Equipment Leasing, etc.

Setting up an innovative business establishment in such niche areas will help achieve Significant market growth and stability easily as there would be very limited competition among the niche.

Let have a detailed look at each of the niche segments. The list is not exhaustive. There are numerous innovative business ideas and niche segments in Dubai that provide immense business opportunities and have a growing demand requirement from the consumers in the region.

Business Opportunities meeting Basic Consumer Needs

1. Restaurant

The Food and Beverages Segment in UAE is highly fragmented and includes a wide range of offerings starting from roadside stalls to 7-star hotels. So, identifying a niche with significant demand is important to succeed in the restaurant business. Dubai is home to more than 200 nationalities.

Hence, there is a sure shot demand for native cuisines of all these nationalities. Setting up a hotel that serves authentic cuisines of a specific national would make you stand out from the competition.

Things to Know for Setting Up a Restaurant in the UAE

Important aspects to consider here are the following:

1. There are certain Approvals from the Food Safety Department, Dubai Municipality for the floor space

3. Get the required Food Safety Certificates – ISO 20000:2018, HACCP, HALAL, etc.,

4. Choose the location close to a residential, office, or easily accessible tourist location, have ample parking facility, etc.

5. Finalize on the Space required and get the Tenancy Contract

5. Get all the kitchen equipment from trusted partners, with approved quality checks

6. Submit the documents to the Department of Economic Development (DED) to obtain the Restaurant License.

7. Choose the right company structure (LLC Company /Professional License) depending on the number of Shareholders.

Prepare the Shareholding Agreement accordingly and submit to the DED along with other documents and fee for obtaining the restaurant license.

2. Real Estate

The Real Estate sector is always an on-demand business in Dubai due to the growing demand from the ex-pat population and foreign investors.

There are various subcategories in real estate where you can start a company like the real estate agency, real estate brokerage, real estate funding & investment, real estate development, real estate consultancy, and more.

Though the real estate market like all other sectors is witnessing a downturn due to the Pandemic, the overall demand for businesses in this field is never going to lower. Property Management Companies are always in demand for providing property deals and real estate information to consumers intending to find new apartments in UAE.

3. Car Rentals

Car Rentals in Dubai are yet another essential service for foreigners, tourists, and the ex-pat population. Most of the residents in the UAE are short term residents or are here for less than five years.

Car Rentals are the most convenient option for the ex-pat population as they can avoid the risk of owning a depreciating asset and the allied costs of registration, renewals, and insurance.

The Car Rental business is lucrative in the UAE. However, there is a relatively significant investment (when considering the cost of the fleet – mostly leased). There is a requirement of having a physical office (150 Sq.m) with a parking facility for cars.

Having an Online Platform to facilitate booking, a GPS tracking facility for car tracking, a service agreement with maintenance shops for repairs, insurance coverage, etc., are overheads to be considered. There is an approval (No Objection Certificate) from RTA required for setting up a car rental service in Dubai.

Business Opportunities in the Digital Sector in Dubai

With the growing digital adoption by consumers in UAE, there are numerous online-based businesses available now in the region. Ecommerce based businesses are the most common one seen in UAE that is on a rise in recent years.

Followed by eCommerce, is the Education Technology-based businesses that develop intelligent applications, video tutorials, online classes, etc., focused on children, college students, and professional training students.

Another most popular business category is the Digital Advertising and Marketing Agency that has grown over years in Dubai. These are relatively low-cost business setup where professionals in the field of Digital Marketing join together to start a company.

The major cost overhead here would be the skilled employee salary, technology platform investment, and digital resource availability for the employees.

Business Opportunities in the Essentials Services

The essential and lifestyle category in UAE is another high demand sector where there is a lot of business opportunities for new entrepreneurs. Under the essential services is the most popular one is the cleaning services and followed by logistics support services.

There is a huge demand from the residential and commercial establishments in the UAE for Cleaning Services. With most of the households run by working people, the availability of cleaning services is on a rise always.

Similarly, the organizations in the UAE require a Cleaning Service Management Company to handle the facility cleaning and maintenance periodically to keep the surrounding apt for business ambiance.

On the logistics Front, courier companies, document clearing services, document handling companies, consumer courier drop-offs services, etc., are in much demand always in the UAE. 

Also, for general trading companies in UAE having assistance for International Trade, providing financial support, a Letter of Credit, equipment leasing, etc., is a must-wanted service.

Hence, in a nutshell, there are a lot of niche business opportunities in UAE that entrepreneurs can tap into by setting up a Free Zone or Mainland Company in the UAE.

To know more about Business Opportunities in UAE, talk to our expert team right away!

Read more about “5 Strategic Industry Sectors Ideal for Foreign Direct Investment in the UAE“.

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Cleaning Services License in UAE is gaining popularity as there is a growing demand for the service from newly constructions and existing large organizations. Also, the modern homes of the working class are also looking for professional cleaning companies for home cleaning requirements.

Cleaning Services Company in UAE – Demand from Residential and Commercial Consumers

Real Estate Analysts in the UAE estimate that almost 50000 new residential units are to be added to the property market in the year 2020. This will further raise the demands for cleaning services companies as there would be growing requirements for maintaining and carry out regular cleaning activities in these apartments.

On the corporate side, the demand is driven by large numbers of hotel apartments, hotels, office spaces, manufacturing facilities, hospitals, and many more. The Scope of Cleaning services Companies are extensive; It can be classified into specific services depending on the exact customer requirements.

Main Categories of Cleaning Services in UAE:

• Residential Apartments (Flats, Town Houses, Villas)
• Commercial Cleaning (Offices/Manufacturing/Hospitals)
• Industrial Cleaning (Equipment/Machinery)

Sub-Categories in Cleaning Services

Cleaning Services Companies can be categorized based on their exact business activity. Following are a few Sub-categories where Cleaning Services Companies facilitate their operations.

1. Streets Cleaning Services

There are special contracts for cleaning streets, footpaths, and markets by manual or mechanical tools. Dubai Municipality regulates the activity and the business license is subject to the approval of the Dubai Municipality.

2. Sea & Shore Cleaning Services – This activity enables companies to collect and dispose of marine waste and pollutants.

3. Building Cleaning Services – Residential, Government, and Professional premises

For example, Cleaning and maintaining huge office blocks such as the Dubai Airport Free Zone. It requires an administration team to handle the operations such as washing each floor, external glass cleaning, restroom & laundry cleaning, and more.

4. Advertising Signboards Cleaning – Cleaning of the large signboards fixed on streets and road cleaning.

5. Runways & Roads Cleaning Services – Manual and mechanical cleaning of runways and roads.

6. Yacht Cleaning Services – Yacht interior and exterior cleaning, polishing, restoration, brightening, interior cleaning, vinyl treatment, etc.

7. Car Cleaning License – Car Cleaning Service activity includes car wash using automatic or manual washing station activities.

How to Start a Residential Cleaning Services Company in Dubai?

To start a Residential Cleaning Services Company in Dubai, the business must register with the Department of Economic Development (DED) to obtain the required cleaning services license.

Based on the Shareholding pattern, the investor can decide on the company structure and license types. For Mainland Companies in UAE, there are two Business License categories that are right fit for the Cleaning Services Companies:

1. Professional License, or,

2. Commercial License

Alternatively, Cleaning Services License in UAE can be easily obtained from the Free Trade Zone also. However, for Cleaning companies aiming to employee a number of ground level staffs, take a warehouse, etc., mainland of UAE will be the right choice to keep the overall cost low and easily expand the market reach.

Professional License in Dubai – Things to Know

• 100% Ownership of your business
• Register as Sole Proprietorship or a Civil Company
• Appoint a UAE national as a Local Service Agent (LSA)

Commercial License in Dubai – Things to Know

• Must appoint a UAE national or Local Sponsor
• Local sponsors will own 51% of company shares and the rest 49% by the foreign investor
• The company will be registered as a Limited Liability Company

Documents Required for Setting Up a Cleaning Services Company in UAE

• Completed business application form for the Cleaning Services company setup
• Trade name for approval- 3 names
• Passport copies of shareholders
• Entry Stamp/Visa page/residence visa of the investor
• NOC from the current sponsor if the shareholder has a residence visa
• Any additional approval required if any

Step by Step Procedures: How to register a Cleaning Services Company in UAE

The Process of Registering the Cleaning Services Company with the Department of Economic Development (DED) is as follows:

• Choose the required business activity from the activity list
• Select the company structure (Sole Proprietor/ Civil Company/LLC Company)
• Get the tradename approval
• Get initial approval from the DED, Dubai.
• Prepare and sign the LSA Agreement (for Professional License) or the Memorandum of Association (MOA) for Commercial License
• Rent a physical office and submit the Tenancy Contract & Ejari. A mainland company must have a physical office as a mandatory requirement for obtaining a business license.
• Submit any additional approval if any
• Pay the fee and get the Business License

Things to Look for Before Setting Up a Cleaning Services Company in UAE

Cleaning Services Company Setup in Dubai is relatively easy but there are various costs and process to be in place to continue in business such as the following:

• Competition from other similar players
• Workforce requirements and logistics support
• Equipment and supplies
• Expertise in the Sub-Categories to expand business services

1. Highly Fragmented Market and Intense Competiton

The investor must be well aware of the market scenario in the UAE. The cleaning Services sector is a highly fragmented industry with a lot of small and large players intensifying the competition.

2. Large Office Space and Warehouse Facility Requirements for Cleaning Services Company

Cleaning companies would require heavy equipment, machinery, disinfectants, and related cleaning essentials in large volumes to cater to their clientele accordingly.

Hence, Investors have to account for huge upfront expenses and set up a support system to effectively procure, manage, and consume, the required essentials. It must achieve consistent profitability to continue business operations.

3. Heavy Investment and Operational Cost of Cleaning Service Company

The Cleaning Services business requires a lot of investment in logistics, essentials, labor, warehouse facility, office space, etc.

The operational costs are to be on a higher side always, investors must have a solid business plan to sustain the operations.

Why Choose Dubai Mainland for Setting Up Cleaning Services Company?

For Cleaning Services Company mainland company formation is the ideal choice than a Free Zone due to the requirement of region-wise operational flexibility and setting up branch offices anywhere in UAE.

1. Flexibility to Employee More Staff

Also, Cleaning Services is a heavy labor-intensive sector that requires employing a huge number of contract staff, in-house staff, part-time workers, etc.

So, for obtaining work-permits, applying for employee visas, gaining more visa quotas, a mainland company would be the right fit.

2. Easily Scale-up the Business Operations

There would be a requirement of having large office spaces or a warehouse to store the cleaning essentials and other required support systems. Again, locating an ideal warehouse would be more cost-effective in the mainland of Dubai.

3. Identify your Niche Area in Cleaning Services Sector

The scope of a Cleaning Services Company varies depending on the list of business activities that will be included in the business license while setting up the business.  

There is an all-time demand for various types of Cleaning Services in Dubai due to the ever-growing infrastructure and real estate investments in the region. So, investors can choose their niche area of cleaning services and set up their cleaning services company to scale up easily.

To know more about the procedures to open a Cleaning Services Company in the UAE, Connect with our expert Business Consultants right away!

Read more >> “How to Start a Manpower Supply Company in the UAE?“.

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