Retail Business in Dubai

by Zaara 23, Jul 2019

The retail industry holds a significant market in the United Arab Emirates as it has been significantly growing in the last decade. Saudi Arabia and the United Arab Emirates capture the highest market capitalization compared to the other GCC countries.

With this, you can understand that UAE has a humongous platform for investors and entrepreneurs who want to kick-start their retail businesses.

This guide will give you the ultimate details you should know before starting a retail business in Dubai.

Retail Business in Dubai

Some of the world's largest retail markets, malls, grocery outlets, and shopping festivals are situated in Dubai. In the retail market of Dubai, there is no shortage of business opportunities; the city is the best place in the Middle East to embark on any retail business therapy, making it a shopper's paradise worldwide.

Dubai is the only city after London considered to be the city for many top international brands with the most critical business opportunities. The city has many global brands in its retail sector, including high-end European brands for mainstream and local shopping outlets. 

There are over 100 malls in the area, each with a unique and attractive designs and facilities. As the shopping industry in Dubai significantly contributes to the economy of the UAE, the malls serve many clients every day; business investors do exceptionally well in the country's retail industry.

Trends in Retail Business in Dubai

  • Retailers in the GCC are pursuing omnichannel market models with increased acceptance of smartphones, internet penetration and other digitised services.
  • The GCC retail sector is expected to experience a significant change with the probable shift introducing Augmented Reality, Virtual Reality, Image Recognition, and Computer Vision Technology for Artificial Intelligence.
  • This technology enhancement will increase margins and customer-centricity and, with data analytics, allow for a deeper understanding of evolving consumer preferences.
  • For supermarkets and hypermarkets, private labels are gaining popularity and have emerged as an essential revenue source. Furthermore, due to shifts in consumption habits, the recent downturn in economic activity in the GCC has emerged as a driver for distributors to push private labels. This makes many people want to open a retail shop in Dubai

Benefits of Starting a Retail Business in Dubai

UAE has proven to be one of the region's most desirable marketplaces for all retailers and offers good growth opportunities in all sectors. This makes ex-pats from all over the world get drawn to extend their retail business in Dubai, considered the UAE’s business capital.

The driving forces that boost the retail industry in the region are highlighted below:

 1. High Population

One of the most targeted tourist destinations, Dubai, UAE attracts millions of visitors annually. The increasing number of tourists and residents in the region of UAE has demanded more presence of retail outlets focusing on multiple domains. This is an excellent opportunity for business investors seeking to invest in the retail market. 

 2. Highly Competitive Market

The retail industry has reached a fierce competition when it comes to the ground of the UAE. Business investors get to explore the different tactics implemented at an international level to boost the retail industry to the next level.

 3. Infusion of Technology

Technology has become a compulsion in every possible business segment, and the retail industry doesn’t stand out of the box. New initiatives and strategies get implemented every minute to enhance the sector to its best. 

Recently, the UAE tech industry has developed an AI robot dedicated to improving the quality of the retail business by keeping a record of the available stocks. 

The core aims of infusing AI into the retail industry were to improve the quality of work, enhance productivity, and effectively utilize the available time.

 4. Complete Repatriation of Capital Invested and Profits Earned

In the case of company liquidation, the business owners don’t need to worry about any tax payments. The United Arab Emirates allows business owners to repatriate the capital invested and profits earned during the business cycle.

 5. Complete Tax Exemption

The United Arab Emirates provides a relaxing environment for business investors to free themselves from the fear of paying taxes by implementing the tax-exemption rule in the nation.

 6. Robust Connectivity

The high-quality network allows a smooth flow of business operations between the supply chain touchpoints. It also plays an important role in the right product production at the right time. 

The government has taken the necessary steps to build robust connectivity and help the business entity move its goods smoothly.

 7. Gateway to International Market

Surrounded by Saudi Arabia, Oman, Qatar, etc., the region of UAE provides a secure gateway for business investors to enter the international market regarding business expansion.

To provide a more favorable climate, the UAE government has numerous Double Tax Treaties Agreements (DTTA), allowing business profe. ssionals to carry out business cross-borders without paying double taxes during the import and export process.

 8. Profitable Segment

The retail sector is one of global investors' highly chosen business investment decisions. Investing in the retail segment in the UAE market paves out multiple opportunities as the market itself has got multiple bifurcations to focus on. Be it medical, pharmaceutical, food, or clothing, the retail segment turns out to be a profitable business in each of the domains.

Choose Commitbiz to Open a Retail Business in Dubai

Commitbiz Consultants is holding the position of one of the best business consultants in the UAE. Our professional experts are well-versed with the incorporation procedures and maintain a vision to accelerate your business. If you want to start a retail business in Dubai, we are the right people to guide you. Contact us today.


Which are the top-performing sectors for the retail stores in UAE?

The top 3 performing sectors in the retail business -

  • Food 
  • Apparel
  • Pharmaceutical

What is the expected growth in the retail business in Dubai?

It is expected that sales growth will be $40.47 billion by 2025.

Is starting a retail business in Dubai profitable?

Yes, the retail sector is constantly growing and has a huge demand, so it is profitable.

How to start a retail business in Dubai?

You need to get a license and relevant approval from the authorities.