The middle east is rife with business opportunities, and this makes it a desirable location for setting up a business. In the case of manufacturing and production business, it is necessary that the company has space so that they can keep the inventory, Work-in-Progress (WIP) and finished goods. The increasing number of companies that are being set up has created a supplementary demand for warehouses. So, we can say that there is not only an increase in the production and manufacturing sector but also a substantial uplift in the warehouse industry.
Not only the production and the manufacturing industry but many other sectors such as import and export industries, handloom industries, retail industries and many others require a warehouse. In the case of branch companies or subsidiary companies, a single sector may need many different warehouses at different locations.
In the UAE, the logistics and the warehouse sector will be a very important sector to look out for!
As the country is placed at a very strategic location and more and more companies from all over the world are setting up their business in the country, the need for warehouses is gradually increasing. With a rise in online shopping and demand for a quicker delivery, the need for warehouses which are full of features and are easily accessible is rising at a fast pace.
Factors to be Considered Before Setting up a Warehouse Company
Before setting up a warehousing company, there are certain elements which should be considered. The various factors which should be considered before setting up a warehouse company in UAE are mentioned below:
1.Identify Your Market
Before starting any business of any kind, it is very necessary to conduct market research. Proper market research will allow you to understand the requirement of the current players in the market and will also help you figure out the trends in the market.
To enter into a market, it is always advisable that the company collaborates with a local business. Proper market research will assist the management in figuring out a local business which has the required resources and will be suitable for the company.
2.Know About Your Competitors
Every business has rivals in the market. Having an understanding of the competitors will allow the management to plan the future of the company. Moreover, you will be able to gather an understanding of how to plan your warehousing business properly.
3.Figure out Industries to Cater
After doing the research, you will know which industries will require the services of the warehouses. The company can focus on these industries and their requirements, and this is a huge boost for the warehouses. When you have established the company, you can start thinking about expanding to other niches.
Finding the right type of employees is very important for any business. An employee should be skilled and have a knack to learn new things. Because of technological advancements, an employee should be ready to learn new technologies.
Also, the employee should be trustworthy as there will be goods of value which will be ready to be shipped off to various places. It is expected that the people working there should not tamper with the products that are stored.
After making a proper business plan now, it is time to start acting upon it. Start marketing your company as much as possible. It should always be kept in mind that the business should provide every possible service to the present clients and keep them happy. When they are happy, they will spread word of mouth.
6.Plan for the Future
The management should be ready to take decisions which will result in some major changes in the company at certain periods. No company should get rigid and stick to only the services it provides. One should keep on finding new avenues and opportunities to develop. Such a move will allow the company to delve deeper into the markets and in certain cases will assist in entering new markets.
By properly following the above mentioned six steps, it will be very easy to open and run a warehousing business setup in the Fujairah.
The Future for Warehousing Industry in Fujairah
Seeing the increased need for warehouses, The Fujairah Free Zone Authority (FFZA) has started its own logistics park. This park will be in direct competition with Dubai Logistics City and will offer standard tax exemptions and lower and cheaper terms and conditions. It will also provide services such as one-stop-shop for all warehousing and distributing facilities. This zone consists of around 100,000-meter sq. of a plot which is enough land to accommodate 200 business units.
This logistics hub will be a very important addition to the various business zones in the area and will attract businesses from all over the world.
If you have plans to set up a company in the warehouse industry, we at Commitbiz will help you in the business incorporation process. There are also offer many other services which will assist the company for a better and sturdy future. For more details on the services provided, contact us – we'd be happy to answer your query.