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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Global Trade and Supply Chain is reviving fast from the COVID-19 Pandemic effect. Businesses are getting back to normal. Shipping and Logistic companies are always on demand as it supports global trade and economic growth.

7 Tips to Know Before Setting Up a Trading, Logistics, or Supply Chain Company in UAE

There are certain parameters export companies must be aware of and must consider having a smooth business operation.

1. Studying the Market Well

US is a major export market for the UAE. Also, a lot of US companies would choose UAE for setting up their base to actively trade in the Middle East, Africa and Asian Markets. Hence partnership with US Companies and setting up a base in UAE will result in profitable business.

UAE – A Major Trade Hub

Goods ranging from Commercial Aircrafts, Power Generating Equipment, Defence Equipment, Computers & Electronics, transportation, etc., are majorly involved in the exporting business. Oil and gas production remains critical to the UAE economy, contributing to about one-third of GDP. UAE is being actively involved in Oil exploration, Crude Oil processing, Storage, transport, etc.

Off late, UAE is diversifying into other sectors to raise the economy and lower the dependence on oil and move to other core sectors like technology, real-estate, smart transportation, digital computing, etc.

2. Market Entry Strategy

For doing business in UAE companies must be having a local distributor or office in the UAE. Being a trade hub of the world, UAE is all set to support international trading and business activities.

The well-connected transport links and geographic location of the UAE make it a perfect place for the logistics business and setting up an export hub.

3. Doing Business in the UAE

The exporters aiming to set up business in UAE must be doing a thorough market study before they sign up for any contract. Conducting business operations in the UAE has its onset of opportunities and challenges similar to any global marketplace.

UAE is a commercial and trade hub of the world and has emerged as a popular logistics & transport hub connecting Asia with Europe and beyond.

Awareness on Trade Regulations, Financing Terms, Customs Clearance

The regulations, credit terms, financing, legal aspects, customs clearance, etc., must be studied in detail. There are certain restrictions in place for shipping to de-listed countries as well as commodities. So the investor must be well aware of the regulations to be met to sustain in the long run.

Experienced business consultants like Aurion will guide you in the right direction to launch your trading business successfully and 100% full proof and hassle-free. Our expert team will work with you throughout and beyond company formation in the UAE. Talk to our team right away!

4. Financial Barriers Faced by Exporters

The exporters must be aware of the financial requirements and the various options available to conduct trade. In some instances, financial trade would not be possible through banks due to compliance issues, or any regulation in place.

In such cases, alternate financing options and credit insurance must be of choice for the investor.

5. Export Credit Facility and Insurance

Exporters are always at the risk of offering credit facilities to their suppliers and they defaulting or performing any fraudulent activities.

Hence, having credit insurance will save the exporter in such cases of default payments. It is an insurance solution that will mitigate geopolitical and commercial risks in export transactions.

Importance of Credit Facility and Insurance for Exporters

When suppliers are spread across geographies, there is always a risk of unprecedented circumstances occurring. Export Credit Insurance is a solution for the peaceful execution of export business transactions.

Also, entrepreneurs must be well aware of the long payment cycles, associate financial terms with export contracts, and take calculated risks.

6. Trading in International Markets

Trading in the international markets will have a direct impact on the market conditions and changes in the dollar and global oil prices. These are the two major market drivers in international trade.

As hedging for managing the losses due to currency downfall, trading in a single currency the US dollar is advisable for large sipping companies operating large-scale businesses. Also for small-scale logistics export companies exporting to the US, the best option is to trade in US dollars.

7. Company Formation Structure

Before starting an export company, the investors must be aware of the company formation structure in the UAE as well as the Free zones and Mainland Business Setup and benefits. UAE business infrastructure offers the perfect platform for foreign owners and UAE nationals to coexist, coordinate, and conduct business.

There are various partnership options such as forming a Limited Liability Company with shareholders where the major shareholder (51%) will be a UAE national. Then there is a 100% foreign-owned company in the Free zones of UAE.

Investors can choose from a wide range of company formation packages available in the UAE based on the exact business requirements.

To know more about import export company setup & details of getting a license for importing gold from Ghana to UAE, talk to our experts right away!

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