Why Fujairah is the Best Location for Warehouse Business

Why Fujairah is the Best Location for Warehouse Business

by Zaara 10, Dec 2019

The most common and profitable business to establish is the import and export business. With an increasing trend of using branded and foreign products and the varied tastes of the people due to the increasing globalization, the import and export business has become an integral part of the lives of the people. This has opened up new investment opportunities for businessmen and entrepreneurs all over the world.

Not only this, when a business is setup it requires warehouses to house both raw materials, Work-In-Progress (WIP) and finished goods and the increasing number of companies has led to an increase in the need for warehouses. This makes UAE as one of the best places to setup a warehouse business.

Why should you invest in a Warehouse?

The various reasons which make setting up a warehouse in the country a very lucrative prospect are given below:

1. Less to No Risk

Building a warehouse requires very minimum investment but the demand for such property is huge and is still on the rise. Depending upon the activity conducted in the warehouse, it simply requires a fenced area and a roof on top. With the increasing use of open spaces and the increase in the ecommerce sector, the need for such warehouses are increasing.

2. A versatile use of space

A warehouse can be used for various purposes and provide a very high degree of flexibility. It can very easily be turned into a storage space and if needed can be converted into office space. A warehouse can even be used as a manufacturing base for the production of various goods.

3. Varied use of Warehouses

Warehouses are required by a various sectors ranging from the food and beverage sector, textile and retail sector to the industrial and manufacturing sector. Due to its use in the various sectors of business, establishing a warehouse is a very profitable move on the part of the business.

4. Better Return on Investment

The increase in the setting up of the companies has helped in the boom of warehouse industry in the UAE. As each and every business requires a warehouse to keep their work in progress and also their finished goods (except the service industry), there has been a rise in the use of warehouses. On an average, a warehouse will provide a return of 8 to 10 percent.

The increasing number of production and manufacturing companies registering themselves in the UAE is a logical and a very profitable option as UAE is located at a very strategic location and acts as the confluence of three different continents namely Asia, Africa and Europe. Let us see how Fujairah, which is an emirate in the UAE, has become one of the best locations to setup a warehouse.

Reasons for the booming warehouse industry in Fujairah

Fujairah is considered as one of the best places to setup a warehouse industry because of the following reasons:

1. Strategic location

The location of Fujairah is a very important deciding factor for making it a suitable place for setting up warehouses in the area. UAE is slowly becoming the logistic hub of the world and is located on route to many of the important trade routes in the world. The place is also in close proximity to major population centres and markets.

2. Infrastructure in the nearby area

According to reports, UAE is ranked third in the world in terms of the presence of infrastructure. The place is in close proximity to sea ports and airports so that there it is easy for transportation of goods. Having state of the art infrastructure will allow the goods and products to move in quick and orderly fashion.

3. Availability of Workforce

There is a need of workforce in the maintaining of a warehouse. It will require many works, forklift drivers and security personnel. These workers can to be both educated and uneducated depending upon the type of activity done in the free zone. With presence of free zones, there is an abundant availability of educated and dependable labour force.   

4. Government Intervention

The government welcomes new companies to the country with open arms. According to the Ease of Doing Business report by the World Bank, UAE ranks 11th for the year 2019. In the previous year, the country was ranked 21st.

Seeing this growth of the warehouse industry, Fujairah Free Zone Authority (FFZA) has commenced its very own logistics park. This logistics park is made with the aim to provide assistance to the various companies which would require help related to the logistics. This logistic park will provide all the necessary permits and business licenses to the various companies for the warehousing and distribution facilities. With direct competition to the Dubai Logistics City, this logistics city will offer terms and conditions at a lower and cheaper rate.

For setting up a business in Fujairah is beneficial across sectors, you will need a warehouse where you can store your inventory. We at Commitbiz, will help you to obtain a warehouse and other infrastructural facilities for  your business in Fujairah. We also provide various other business advisory services. For more details on the services provided, contact us – we'd be glad to assist.

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