Dubai is regarded as a home of business industries. Regardless of the size and nature of the business idea that an investor holds, the region tops the list. Sheikh Rashid bin Al Maktoum has left no stone unturned to convert the city of the desert to a landscape of business, giving equal opportunities to different kinds of business.
Multiple steps have been taken by the government to provoke business investors to come forward and start a business in Dubai. However, there might be confusion regarding which industries to choose from and how to begin. This guide gives you complete information regarding the top business industries prevailing in Dubai, which will help you select an industry to invest in and understand the current scenario and future growth perspective.
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Top Business Sectors of Dubai
The growing business sectors that grab the attention of worldwide visitors are mentioned below. Let’s proceed and have a look at the sectors.
1. Automotive and Aerospace
Dubai is known as a business podium which has a space for every type of business. The automotive industry stands as no exception and has become one of the key drivers to boost the economy. Even police cars in Dubai turned out to be luxury vehicles that performed well. The region has a mass market for the automotive sector, and it is expected to grow even more by the end of 2020. The number of passengers is expected to increase at a compound annual growth rate (CAGR) of 5 percent, holding 13.2 million counts by 2020.
The aerospace sector is one of the top six focused areas in Dubai's industrial strategy for 2030, with an expected contribution of 2.3 percent towards the country's GDP. The industry prevailing in the region currently contributes USD 80 billion to the region’s economy, paving the way for employment for more than 2, 50,000 direct and 2,25,000 indirect jobs. The major players in the industry include Emirates Airlines and Etihad Airlines. By the year 2020, the sector is expected to contribute Dh 200 billion, which will hold 7,50,000 job opportunities. Dubai Car and Automotive City Free Zone (DUCMAZ) serves as a dedicated free zone for the car and automotive industry, and there exists an enormous opportunity for business investors to come forward and invest in the aerospace industry.
2. Oil and Gas
The next industry that attracts investors' attention is the oil and gas industry. The UAE stands as a member of the Organization of Petroleum Exporting Countries (OPEC) and Gas Exporting Countries Forum (GECF) and has been a prominent player in the international market. The UAE stands as the world’s seventh-largest provider of oil reserves and stands as one of the key drivers contributing to the growth of the economy. Abu Dhabi, the capital of the UAE, attracts business investors to come forward and set up their oil and gas company in the region.
3. Manufacturing
The manufacturing industry in the UAE is growing as it contributes greatly to the economy. According to a report, 7 percent of Abu Dhabi’s GDP is expected to generate from the manufacturing sector, exceeding the output by 22.8 percent, and building an employment pipeline for more than 21.7 billion. The manufacturing industry has different sections under its umbrella that cover the manufacturing of:
- Metals.
- Building Materials.
- Petrochemicals and Chemicals.
- Pharmaceuticals.
- Food, Beverage and Consumer Goods.
- Aerospace and Defense Equipment.
- Industrial Equipment.
4. Food and Beverages
The food and beverage industry falls under the booming business industries of the UAE. At the international level, the F&B industry stands as the second largest industry in the world. The UAE F&B has extended its arms at the national as well as the global level and is expected to hold a higher value by the year 2020, as the demand will grow during Expo 2020. By the end of 2021, the fresh food count would increase in the region by 8.3 percent.
A strategy that the UAE adopts to bring more players into the market is conducting different trade show events like Gulfood, a world food fest that takes place every year in the UAE, attracting more than 5000 exhibitors to showcase their food items. Parallelly, it also provokes entrepreneurs to come forward and start their businesses in the food industry. To start a restaurant, the business owner must hold a restaurant license. Similarly, the cafeteria license and food truck license need to be held by the owners who are planning to start a cafeteria or food truck business in the UAE.
5. Marketing and Advertising
As we know, the number of business entities established in the UAE has been increasing day by day. It is expected to grow more after Expo 2020, as it will build more business relationships. In such a scenario, companies will require marketing, branding and advertising services to create brand awareness. Currently, more than USD 1 Billion per year is spent on advertising by the UAE companies, and they are going directly to Silicon Valley.
The demand is high, and it turns out to be a niche market in the region, which is an excellent opportunity for business owners, marketing professionals, and even freelancers who are looking forward to setting up a marketing or advertising consultancy business. To leverage the industry growth, a dedicated free zone like Dubai Media City has been developed, dedicated to the media industry, that provides office space services to the media, advertising and marketing companies to set up their business. You can quickly start your business after obtaining the advertising agency license, which will be issued by the UAE Government Authorities.
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Conclusion
In a nutshell, we can say that the region of UAE has been accepted as an international business hub that has been excelling in all possible grounds to hold numerous business industries. “Think business, think UAE” turns out to be the ultimate motive of the region that it has been trying to infuse in the minds of worldwide business investors, entrepreneurs, and freelancers.
Please stay connected with us to check Part II of Top Business Industries Prevailing in Dubai, 2019 to find the next set of seven industries on which you can focus to start your own business. To ease your process, Commitbiz LLC consultants can be at your side to guide you at every step of the business incorporation process. If you have any queries, contact us, we will be glad to assist you.
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