It is widely known that one of the most booming sectors in the United Arab Emirates (UAE) is the real estate. Due to numerous business and growth opportunities, many foreign investors, business persons, and entrepreneurs are attracted to the UAE, which results in the growth of demand for real estate. This thriving real estate sector has helped boost other businesses and industries as well.
One such business is the Furniture business in the UAE. Due to the growth in the lifestyle of the people living in the UAE has seen tremendous growth in the furniture market. If you are planning to set up a furniture business in Dubai, you will first need to understand the industry and analyze the market to be targeted.
UAE Furniture Market
The furniture market in the UAE region is highly competitive, owing to the rising demand for furniture and furnishing products. This increase in demand has led to the growing domestic demand and the emergence of multiple players catering to the similar target audience in the space. Manufacturers and retailers operating in the region compete on almost the same grounds of quality of the product and the material used to manufacture the product.
In the UAE alone 55,000 homes and 40,000 new hotel rooms were constructed in the year 2017-18. It has been observed that 70% of the wood and timber products are used for construction purposes while the remaining 30% is used in interiors, real estate, furniture and other industrial applications. The demand for furniture is likely to go up shortly as Dubai will add 40,000 new hotel rooms and service apartments to meet the growing demand of tourists following the "Expo 2020" in Dubai, which initially was for a period of 1 year from 2020 to 2021. It now has been postponed to the year 2021-22.
UAE Furniture market is expected to register positive CAGR of around 5.6% during the period 2018-2022. A rise in the number of online market players catering to the demand for wooden products and accessories are expected to have a positive impact on the overall revenue of the UAE furniture market.
If you are planning to set up your furniture business in the UAE, here's all you must know.
How to Start a Furniture Store in the UAE?
The process is as under -
- Get a local sponsor if you want to start your business in the UAE mainland
- Choose the location depending on the market for the demand for furniture
- Obtain a business license and register your business with the relevant authorities
- Complete the paperwork to start operating your business
Benefits of Setting up a Business in the UAE
- Taxation benefits
- There is no minimum capital requirement
- No restrictions on trading locations
- Dubai is the fastest-growing economy
- Free zone benefits
- First-class infrastructure
- Work along with government bodies
- There is no restriction in currency limitation
- Low import duty
- More options for business activities
Why must you Choose UAE for starting your Furniture Store?
In case you have doubts about setting up a furniture business in the UAE, these are some of the reasons why entrepreneurs and investors are interested in operating their business in the UAE.
- The booming real estate industry give rise to the real estate needs
- UAE is a global business destination and setting up any office does require furnishing equipment
- The lifestyle of the people living in the UAE is changing drastically, and it demands new interior decorations
- The furnishing industry contributes to the import-export sector as well
- Dubai has a robust network with the neighbouring countries which will help you expand your business easily
The UAE is still considered to be the number one business location in the Middle East. Because of its banking and real estate sector, the UAE has managed to stabilize itself financially and increased its economy. The legal proceedings are fast-tracked, there is minimal paperwork, and the registration process is simple. Companies from all over the world, are willing to open their business in the UAE due to a massive inflow of foreign capital, hence making the economy of the UAE even more robust.
We at Commitbiz can help you start your business in the UAE. Our consultants can help you with the process in a hassle-free manner. Contact us today for more information.