What are the growing sectors to target with your new UAE business?KWSME
The UAE has witnessed dramatic growth in industry over the past 15 years and has established itself as a global industry hub. UAE economy is going strong as ever and World Bank analysts have forecast 2% real GDP growth for UAE in 2018 which will jump to 3% in 2019 and 3.2% in 2020.
This has been achieved due to the country’s reputation of being a fertile ground for company formation Dubai, progressive-minded government, higher infrastructure spending, business-friendly reforms and liberal corporate policies that boost investor confidence and support higher FDI inflows.
If you are going for new business setup in Dubai, we comb through some of the most popular sectors in the country that present immense opportunity and potential returns in the near future.
With many young and affluent customers, deep internet penetration and advanced networks for logistics, the UAE’s e-commerce sector is growing faster than anywhere else in the world. According to a report by Fitch Solutions Macro Research, UAE e-commerce spending in the country was 9.7billion$ in 2017 and it is expected to increase 170 per cent to $27.1bn in 2022.
This expenditure offers a new segment of expansion for e-commerce players such as online grocery delivery service. As shoppers’ demand for convenience this prompts the growth of other consumer sectors and delivery services.
There is relatively new and different consumer base who like to pay for convenience services related to their food purchases. They are more receptive to convenience store formats, meal deliveries and online grocery delivery. Moreover, consumers are demanding higher quality food as well as organic food which tend to be priced higher. So there is good business opportunity in grocery sector which is one of the highest consumer spending segments in the UAE.
Construction and Real Estate
Construction sector is the main pillar of UAE’s economic diversification strategy. The sector recorded remarkable growth at 7.7% year on year in the second quarter and 7.5% year on year in the third quarter of 2017, the fastest growth rates since the financial crisis.
The growth in the construction industry is due to the rapid investment inflows as Expo 2020 is getting nearer. An increase of 47% in allocation for infrastructure in 2018 budget by Dubai government ahead of Expo 2020 is a step in this direction. The infrastructure distribution will cover the development of the main expo building and supporting service projects such as roads, bridges, sewage, transport and metro lines as well as organizing the area for post-expo events. So we can expect a huge inflow of investments prior to the expo and beyond,
- According to MEED Projects, UAE construction market valued at $US805 billion.
- According to Dubai’s 3D Printing Strategy, 25% of all buildings in Dubai will be 3D printed by 2030,
- US$42.5 Billion of Expo 2020 Dubai related infrastructure projects have being delivered.
- Dubai forecast to deliver 163,000 new homes by 2021.
In the retail sector, staggering investments have been made into the ongoing developments that include malls, restaurants, and theme parks – especially in Dubai. Of course, UAE residents are not the ones who are driving this growth. In 2017, for example, some 15.8 million tourists visited, and by 2020 those numbers are expected to hit 20 million. And we all know how tourists like to spend.
There is a considerably rapid development in UAE healthcare sector that attracted major international companies in the market. Dubai has best-in class hospitals and clinic s and due to growing and aging population, Dubai and other emirates are seeking credible and world-famous health care providers.
Key facts and figures
- The UAE is in the world’s Top 20 in healthcare spending per capita i.e. average of US$1200
- Alpen Capital Consulting Services said that the UAE’s healthcare market is expected to reach $19.5 billion in 2020
- The UAE is also world’s fastest growing medical tourism hub, with total health expenditure allocation jumping from the current $23 billion to $28 billion by 2021
- The annual revenue goal Dubai is aiming to achieve from medical tourism by 2020 is US$708 million
UAE government is encouraging private players to setup health-care facilities. Dubai is also home to the world’s largest medical free zone, Dubai Healthcare City (DHCC). It has world-class infrastructure and excellent clinical services.
UAE healthcare sector is undergoing a structural shift- younger population is more health-conscious. They are going for preventive care rather than curative one. Furthermore, there is an increased demand for qualified professions in aesthetic surgery, dentistry and rejuvenation treatment. In plastic surgery market alone, there are various opportunities such as hair transplantation, liposuction, face lift etc.
Increase in elderly population has led an increase in chronic diseases; therefore long-term healthcare units are in continuous demand by the UAE market. But, as treatments are quite costly, this paves the way for investments in home care services and private providers.
If you are planning to start new business in UAE in any sector, please contact our Dubai business setup consultants at KWSME. We provide complete company formation and support services. Call us now at 00971-(04) 871 4313 or e-mail your query at email@example.com.