Dubai stands among st the few nations of the world whose growth rate figure is positive every consecutive year. This is because the government has regulated its economy by undertaking correct strategies at correct time. One such decision is less reliability on oil production and shifting towards trade of high quality commodities as well as providing foreign entrepreneurs with investment opportunity in Dubai to prove their mettle.
Key Economic Indicators:
Gross Domestic Product (GDP)
Dubai delivered a strong economic performance in the year 2016 and its’ GDP growth rate was 2.9%. IMF statistics forecast for Dubai for year 2017 and 2018 are 3.3% and 3.5% respectively. These figures show a steady growth of Dubai’s economy. The fastest growing sector in 2016 was hospitality (restaurants and hotels) showing 10.6% growth rate. This is followed by real estate services with growth of 6.5%, transport 4.7%, wholesale and retail trade 1.3% and lastly construction sector showing negative growth of 0.7% but otherwise for whole UAE, construction sector growth was 3%.
Foreign Direct Investment (FDI)
Government is continuously putting its efforts to improve their business environment and create more opportunities for foreign investment. According to Statistics by FDI Agency Dubai, Dubai attracted FDI capital of AED 25.5 billion in 2016 and has global ranking of 7th city in terms of total FDI cash inflows. Top 5 sectors which generated FDI capital in 2016 are,
- Non-residential building construction 34%
- Accommodation and food services 26%
- Scientific research and development services 6%
- Real-estate, rental and leasing 5%
- Retail and wholesale trade 5%
These figures give us an idea of the sectors which can promise an entrepreneur a high Return on Investment (ROI). If you are looking to start business in Dubai, we have listed down top 10 business investments in Dubai which can be profitable for you.
Dubai is well known for its modern buildings and state of the art infrastructure. Many more developments are in progress which assures you that construction of buildings and skyscrapers will not slow down. This sector provides immense opportunities for engineers, construction companies, architects, real estate developers and professionals related to this field. You as a foreign investor can set your own manufacturing firm or you can sell materials which are used for construction.
Whether you go to Dubai or any other place, hospitality sector thrives everywhere. People love to travel and eat and Dubai has attracted millions of tourists in recent years which have raised the demand for restaurants and hotels. You can make a lot of money by investing in food business or build your own hotel for people to stay. Expo 2020 is on its way and Dubai is going to host it. This event is expected to attract over 25 million foreigners from all over the world so there is quite potential in hospitality sector for growth.
3. Real Estate
The population of Dubai is 2.9 million and approximately 90% are expatriates, the numbers of which are increasing day by day. This has given rise to buying, selling and renting of properties in Dubai. Residents often ask for trustworthy agents for their smooth property dealings. There are various consultant agencies that provide these services.
Trade is the cornerstone of Dubai’s economy. Dubai has an immensely vital position in world map and serves as gateway for three continents i.e. Asia, Africa and Middle East. Imports and Exports are very common here as majority of people earn through this profession. You have plenty of options to import or export such as dry fruits, clothing, jewelry, fashion material, plastic goods, vehicles etc.
5. Financial Services
Many large scale companies in Dubai require professionals who provide financial services like accountants, book keepers and auditors. If you have knowledge experience in this field, you can make huge profit by establishing a business which offers these services.
Healthcare centers are on the rise in Dubai and demand for professional and highly skilled doctors and related staff is high. Also, people from Asia and Africa are preferring to come to UAE for their treatment rather than going to Europe or USA which is quite costly.
Even though crime rate in Dubai is very low and it is quite safe place to live, however individuals and businesses do want to put their assets on a risk and demand for safeguards as well as high tech security devices is high.
If you lack resources to start your security business, you can still get benefit from it by selling security devices such as alarm systems or security cameras.
Dubai is one of the most popular tourist destinations. It is known as world’s “shopping hub”. There are many five start hotels and resorts in Dubai. Tourism can be of various categories; shopping tourism, business, sports, cultural or medical tourism. Also with this sector, other areas are also linked like food, transport and hotels. If you are looking to setup a business in this sector, you have many options. This sector is gaining popularity day by day with annual economic impact of 6.5 trillion US dollars worldwide.
There is huge demand for transport services in Dubai, so investors have option to start their local taxi service or develop their own trans-city transport service company.
Webpreneurs are those entrepreneurs who have businesses related to World Wide Web. This is currently most trendy business which includes e-commerce, web development, mobile and internet marketing and online businesses. This sector is expected to grow as people are more inclined towards online purchase of goods.
If you are looking to start your business in Dubai in one of these sectors or any area that you find suitable for yourself, contact KWSME for our company formation services. We provide complete business setup solution to our clients and help them for a successful start under a competitive environment.