Entrepreneurs from different parts of the globe flock to Dubai to expand their business year in and year out for good reason.
Dubai is one of the top investor-friendly and busiest commercial hubs in the world. The city has low tax rates, with the value added tax or VAT set at only 5%.
Import duties for raw materials are low as well.
Additionally, the city provides free trade agreements to companies and state-of-the-art infrastructures for companies. Dubai’s strategic location and availability of natural and human resources also make it one of the top business destinations in the world.
As an entrepreneur, these benefits are too good to pass up. However, you still have to do some research and make the right decisions to ensure you steer your business toward success.
One of the important decisions you have to make before pursuing your entrepreneurial dreams in Dubai is choosing what type of business to open if you don’t plan on expanding your company here.
Deciding on what business to open is a critical part of a new company formation in Dubai. It plays a massive role in the long-term profitability and success of your venture.
Although there are numerous business sectors or types to choose from, narrowing down your options to these six can make it easier for you to break into a new market and achieve success in Dubai:
Although the COVID-19 pandemic put a damper on Dubai’s (and nearly all places’) food scene, it is now experiencing a surge again.
Taking approval from the Planning section of Dubai municipality will be the next and the most important step for setting up a business in Dubai, further get approval from Health and Safety Division.Because of this, opening a restaurant, café, and any other food service business is something you can consider.
A previous report stated that 35% of survey respondents eat out two to three times a week. Seventeen percent of the same group say they eat out or order takeaway nearly every day.
With a ready market to tap into, you won’t go wrong with starting a food service business in Dubai.
Opening a restaurant or cafe isn't your only option if you want to break into the Dubai food scene. You can open a food truck, cafeteria, small bakery, or a stall in a mall food court.
You can even consider starting a catering company that prepares home-cooked meals that you can deliver to offices or homes. The outlay for this type of business isn’t too substantial, but you can enjoy excellent profits once it takes off.
Health and Wellness
The majority of Dubai’s population is health- and beauty-conscious. Because of this reason, the city is the largest contributor to the United Arab Emirates’ healthcare and wellness market.
This also means that Dubai has an open market for different types of health and wellness businesses.
Your options include:
01 Online health consultation services
02 Dental clinic
04 Yoga or Pilates studio
06 Massage centre
07 Wellness retreats or retreat centre
08 Beauty salon
09 Online and physical store for health and fitness products
If you decide to enter the health and wellness sector, the opportunities are endless.
Since Dubai is home to thousands of expats and expects to receive more every year, starting a business that helps them find a home can prove to be lucrative.
Aside from home-finding services, the real estate market in Dubai has a wide scope of opportunities. This includes real estate development, property management, and brokerage.
Additionally, you can also choose to specialise in providing real estate services in the commercial, residential or industrial market, or all three.
Many people in Dubai are busy working or running their business every day and sometimes even during weekends. As such, they often have no time to do their usual household chores, including cleaning their home or doing the laundry.
With a ready customer base, you can tap into this market by starting a business that offers a variety of home services.
A specific business idea you can consider is cleaning services. This offering is already popular among the locals and expats in Dubai and will continue to be highly sought-after in the years to come.
You can also consider starting a company specialising in plumbing, HVAC servicing, and other repair and maintenance services to help residents and commercial property owners with these needs.
Information technology or IT is another sector you can consider entering.
For years, Dubai has been attracting international tech-based businesses. The local government continues to roll out policies and initiatives that drive tech innovation and attract IT entrepreneurs to reach their goal of becoming a smart city.
Because of this, providing IT and e-commerce solutions is a business idea worth pursuing.
The IT-themed free zones in Dubai also make the ideal setting for a start-up if you want to take this route.
Free zone company formation in the UAE is also fairly straightforward, which means you can skip the usual hassles that come with setting up an IT start-up or SME.
Travel and Tourism
Lastly, Dubai is already one of the top tourism destinations in the world.
Tourism is also one of the city’s primary sources of income and largest industry.
With a constant goal of attracting more tourists, you will do well to try your hand in the travel and tourism sector.
Some of the tourism services you can consider for your first business in Dubai include tour operations, visa processing, holiday home rentals, and souvenir shops.
You can start your entrepreneurial journey in Dubai by narrowing down your business ideas to the ones on this list that interest you and are familiar to you. You can also streamline your company’s formation process by working with our expert consultants.
Speak with our staff to know more about our Dubai business setup services.