E-Commerce to Drive the Warehouse Industry in Dubai

by Zaara 03, Mar 2020

The evolution of the e-commerce industry stands as a complete 360 paradigm shift for the corporate world. Starting from small retail business to global giants, the way of doing business has inclined towards the digital platforms to capture a wider audience. This move has although changed the buying pattern of a company, but also has created new ways for other business industries. One such ground is the warehouse business that stands as an inseparable part of the e-commerce firms. The growth of warehouse business has been continuously rising, and the growing demand for the e-commerce business has opened up multiple gateways to the ground. This guide will help you to understand how the warehouse business stands as a lucrative business segment to invest in.

Link Between E-Commerce and Warehouse

The e-commerce platform has brought a unique experience to its users. Recently, the Government of Emirates have launched a dedicated e-commerce free zone to boost the e-commerce industry. On-time delivery and fast processing have created a flexible option for the users as it removes the element of distance. While front-end serves to be simple as the tasks get carried out with the help of a button, the back-end operations turn out to be equally tedious. The proper network needs to be built to carry out hassle-free business operations. The e-commerce business does require the warehouse managed effectively to store the relevant products to carry out hassle-free business operations.

Over the growing years, e-commerce has contributed a lot in molding the warehouse facilities. There are numerous types of new warehouses that focus on the following business aspects:

  • Centralized return centres
  • Customer Facing
  • Flow Warehouses
  • High Ceiling Facilities
  • On-demand Warehouses etc.

The Lootah Real Estate Development in Dubai has launched the UAE’s first lease-to-own industrial warehouses with a projection of an increase in the e-commerce business in the future. UAE stands as a ground that is expected to attract more businesses by the end of 2020 as the World Expo 2020 is on its way to drive the business collaborations. The UAE stands as the largest e-commerce platform among the GCC states, and it projects to hold a value of $20 billion by the year 2020. This highlights the essentials and the scope that lies for the business investors to come forward and invest in the warehouse industry. Setting up a business in Dubai has been made much easier by the Emirati government as they are looking forward to grabbing the attention of global investors.

Ranging from a large e-commerce company to a small retail business, there exists a need for the retail business to a great extent. If you are looking forward to investing in Dubai, then you can opt for the warehouse segment as it holds enormous potential and can fetch you high profits. Now, before you make a decision, let’s take a step ahead and understand why deep-diving into the warehouse business is a profitable one in Dubai. Some of the top locations where you can focus on incorporating a warehouse business are stated below:

Benefits of Investing in the UAE

Some of the benefits that you will be able to avail by establishing a warehouse business in the UAE are as follows:

1.Tax-Free Exemption

One of the critical points that attract global investors to come ahead and invest in the UAE is that the region provides complete tax-free exemption on the income earned. Recently, the region has adopted VAT charges that get applied to the corporate industries at a rate of 5%.

2.Multiple Target Markets

Since you will be dealing with the warehouse business, you have a wide range of customers on the list. Ranging from hospitals, e-commerce platforms dealing in different businesses, retailers, you can target each of the segments to provide them the relevant services.

3.High Revenue Generating Business

The warehouse business stands as a high profit-generating business as it provides you multiple options to earn better revenue either through rent or lease options. Targeting various customers dealing with different industries can fetch your business to uplift the business revenue.

4.Easy Expansion

Once you have set your foot on the ground of UAE, you can easily look for the expansion options in the neighbouring countries like Oman, Qatar, Bahrain etc. This also helps you to understand the international market and excel in generating more customers for your business.

By now, you must have got an overall idea regarding the growth opportunities that the warehouse industry holds. Deep-diving into this business turns out to be a smart option as you can see that there exist numerous opportunities ahead to comply with. Now, moving forward alone turns out to be a bit complex task as the process involves documentation and legal scenarios that need to be abiding by. Having a guide who is well-versed with the legal and incorporation processes turns out to be beneficial as the complete process is carried out in a hassle-free manner.

Commitbiz Consultants stands as one of the top business consultants in the UAE who has been helping numerous entrepreneurs and professionals to incorporate their business grounds. Ranging from incorporation to the establishment of core pillars like accounting, taxation, legal, VAT, we take care of all the essentials. Our business experts are well-experienced and do provide tailored solutions meeting the business essentials to start a business in the UAE. If you want to set up a warehouse in Dubai, do contact us-we’d be glad to assist.