United Arab Emirates: Business Dynamics & Market Analysis UAE
During the last few years, one of the most open and successful economies in the world has been that of the UAE. And due to its thriving and growing business environment, many entrepreneurs from many countries have set up their companies here. But what makes the UAE’s economy strong? The best way to answer this question is by conducting a UAE market analysis. In this article, you will learn about the current UAE business environment, dynamics, and economy that benefits entrepreneurs and companies. Besides, you will also be able to find useful information about investment in the UAE, essential regulatory considerations, and more. As a result, you will get an idea of how profitable it can be to set up your business in this country. Brief overview of the UAE’s thriving business environment By having business-friendly free zones and flexible regulations, the UAE continues to be one of the most strategic business hubs. Besides, the country’s rich natural resources, which include oil and gas reserves, have a significant impact on the economy too. Therefore, most of the UAE’s wealth comes from oil experts (30% of the total UAE gross domestic product). As a result, the business environment in the UAE is benefited by its stable economy. Furthermore, the United Arab Emirates is also known for being a country that develops and diversifies its economy very quickly. As a matter of fact, it is developing a program that allows the reduction of reliance on oil and gas. In other words, the UAE looks forward to transforming its economy from labor-intensive to one based on technology and knowledge. So, according to recent a UAE market analysis, it will improve the UAE business environment exponentially. Importance of small businesses in UAE’s diverse economy Both foreigners and UAE citizens can easily set up their small businesses in the country and get benefits from it. And the government has established a business-friendly environment to allow businesses and every small investment in the UAE to succeed. But what is the importance of small businesses in the economy of this successful country? Below, we will mention some of the most remarkable aspects that illustrate their importance: Their contribution to the UAE’s Gross Domestic Product (GDP): in the UAE, around 94 percent of the total number of firms consists of small and medium enterprises (SMEs). And according to the UAE market analysis, that plays a critical role in the UAE’s economic growth and diversity. In Dubai alone, SMEs contribute 40 percent of the emirate’s GDP. SMEs provide job opportunities: apart from contributing significantly to the country’s GDP, SMEs can also provide job opportunities. As a matter of fact, they provide jobs for 86 percent of the private sector’s workforce approximately. Their impact on the UAE’s economic diversification: as we mentioned before, one of the goals of the UAE government is to reduce the country’s dependence on oil and gas. And by supporting SMEs, it is possible to diversify the UAE’s economy and improve the technology, retail, manufacturing, and services sectors. Competitiveness and innovation: most of the time, small businesses are capable of leading the way when it comes to innovation and competitiveness. Therefore, SMEs are essential for the country’s development and leadership in the era of digitization. Criteria for Successful Business Ventures in the UAE Although the UAE is a perfect place to establish a business, considering the UAE market analysis is fundamental. Besides, certain criteria can determine the success of a business venture in the UAE. So, whether you are a foreign or local entrepreneur, you should consider the following criteria: Acquire market knowledge: before setting up your business, conducting a UAE market analysis will be your priority. This way, you will be able to understand how the market flows in this country. Besides, you will also learn how to invest money in the UAE and benefit from it. Have a solid business plan: the success of your company will also depend on the business plan you design. And make sure to include all necessary details to complete the setup process and set your business goals. For example, you need to define your company’s value proposition, market strategy, business model, financial plan, etc. Be financially stable: apart from having a plan, it is crucial to have the ability to finance your business and keep a healthy cash flow. As a result, it will be easier to make your company grow steadily. Comply with all UAE regulations: as you may know, each location in the UAE has its own rules. And, depending on the jurisdiction you choose, you must be aware of these regulations and comply with them. Get a qualified Human Resources team: whether you decide to have an in-house department or outsource your HR duties, it is essential to count on a qualified team. Adapt and innovate: there is a changing business environment in the UAE. Therefore, all companies must be able to innovate and adapt to the most recent market trends and demands. In fact, you should keep in mind that these elements can be a decisive factor for your business success. Economic Foundations Before discovering the vast oil fields in the 1960s, the UAE’s economic foundations used to be fishing and pearl trade. But then, oil and natural gas became the mainstays of the country’s economy as these contributed significantly to the government’s revenue. However, it is no longer possible to keep depending on these natural resources to make the UAE’s economy strong. Therefore, the government has set a new goal consisting of embarking on economic diversification strategies to reduce oil revenue dependency. And now, there have been huge investments in the UAE to develop and boost other economic sectors in the country. For example, among the best investments in the UAE that the government has made you can find the development of these sectors: Tourism. Construction. Finance. Renewable energy. On the other hand, the government has also made another good investment in the UAE, which is related to business. Abu Dhabi Free
