When you think about starting a business, there are umpteen opportunities around. Also, depending on the location the popularity of certain businesses varies.
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
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“.