Top Emerging Businesses in the UAE in 2023
The UAE is at the forefront of global transformation, strategically located between Africa and Asia. It is a key player in the emerging world order because of its trade and investment between two expanding continents.
Over the last 50 years, the country has joined an elite group of global trade hubs. It has accomplished more than building skyscrapers in five decades. To diversify its economy, the UAE has established itself on a solid foundation of transportation, trade, and tourism.
The UAE has been the top choice for entrepreneurs to establish businesses. The country's regulations have been steadily bent to cater to such startups. As the first quarter of 2023 ends, it is an excellent time to see what businesses emerge in the UAE. These businesses have the potential to grow in the coming months. This article will discuss some of the top emerging business opportunities in the UAE in 2023. It will also provide an overview of how these businesses can succeed and what investors should consider when investing in them.
1. E-commerce Solutions
As one of the world's most accessible places for launching an e-commerce business, the UAE offers excellent internet connectivity. The largest B2C e-commerce market is in the United Arab Emirates. It is also the e-commerce leader in the Gulf Cooperation Council (GCC), accounting for more than 60% of online buyers.
Another factor for the region's quick rise in e-commerce is the UAE government's ambition to transition to a cashless society, dependent on growing digitization and online purchasing. Furthermore, e-commerce enterprises have much lower initial costs versus traditional brick-and-mortar stores, making it easier to pivot, expand, and scale as needed. Businesses can start small and expand as they see fit.
2. IT Solutions
Due to its flourishing tech industry and designated zones such as Dubai Internet City and Dubai Techno Park, the UAE is a popular destination for IT enterprises.
The country is also a hotspot for freelancers and overseas expats, making it easier for company owners to identify and hire top personnel. It also provides international exposure because enterprises operating here can enter the global market and reach a wider audience. Millions of investors are drawn to investor-friendly standards, making it a great opportunity to build an IT business here.
3. Food and beverage industry
The United Arab Emirates (UAE) is the Middle East's top food and beverage sales market, owing to expanding tourism and a growing population. Over the last five years, the sector has grown steadily, expanding by 22%.
Because of government initiatives, foreign investment, and a diverse population, the food services sector has grown into a significant industry with strong demand for a wide range of brands. Emerging industry trends include food safety, sustainability, and health awareness.
4. Tourism and travel
With approximately 16 million visitors yearly, the UAE attracts individuals worldwide for business, recreation, and health.
The UAE provides architectural marvels, world-class shopping, luxurious accommodation options, and a vibrant cultural experience, making it an appealing place to launch a travel and tourist company. Moreover, the UAE government has made significant investments in tourist infrastructure to ensure visitors have an outstanding experience when visiting the nation.
5. Real estate business
The UAE real estate industry is rapidly expanding and emerging as one of the region's primary economic sectors. Real estate holdings in the UAE are popular due to their high returns on investment and tax regulations. They have a projected value of $2.7 trillion.
Developing creative business models such as co-working places, smart cities, and affordable real estate has fueled this trend to a significant extent. Furthermore, the UAE government has strongly supported the expansion of this sector by enacting policies and rules and regulations that benefit foreign financiers.
6. Health and wellness
With a growing population and an increased need for high-quality medical services, the UAE has emerged as a desirable location for investors wishing to create healthcare facility organizations. The UAE government has also established public-private partnerships (PPPs) to assist the developing wellness sector.
Furthermore, the UAE's fast-increasing tourist industry has produced an enormous market for medical tourism, in which people from all over the world travel to the UAE to receive excellent medical treatment. It has increased healthcare industry profitability. These measures have helped create new job opportunities and allowed businesses to expand their operations and provide high-quality healthcare services.
Any country growing as fast as the UAE will indeed have an excellent education infrastructure, and the need for quality education only keeps rising. The UAE government has made education its top priority and has invested enormously in building world-class educational institutions to provide high-quality education for the masses.
In 2023, the sector will likely see rapid vocational training, online learning, and experiential learning. Furthermore, the UAE is home to many immigrants, many of whom have elementary school kids, creating a huge opportunity for private education providers.
8. Advertising and Marketing Business
With its expanding economy, the United Arab Emirates (UAE) has grown into an increasingly appealing market for foreign businesses, which has directly led to advertising businesses thriving in the country. Companies seek more effective ways to contact customers, and advertising has become a vital strategy.
Local and international businesses heavily engage in marketing campaigns via digital channels like social media, search engines, display advertisements, native ads, etc., making it an ideal location for advertising enterprises to develop.
9. Financial Services
The financial services industry in the UAE is lucrative, with the country's robust economy and expanding financial services industry giving a plethora of chances for entrepreneurs. The UAE's financial services sector is predicted to grow further in 2023, driven by rising demand for banking, insurance, and investment goods and services.
Statistics show the UAE's financial services industry has grown steadily over the last decade. According to a KPMG report, the industry will grow at a compound annual growth rate of 7.4% between 2021 and 2025. Banking services constitute the largest proportion of the overall market. Insurance and investment options will increase rapidly in the near future.
As the country's economy continues to grow and diversify, firms in every industry seek consultants' guidance to navigate through the market's intricacies and gain a competitive advantage.
UAE is a strategically located, business-friendly hub for international trade that provides access to a worldwide network of clients and prospects.
In conclusion, the UAE is a vibrant business and entrepreneurial centre, with various developing industries that offer lucrative prospects for entrepreneurs and investors.
Entrepreneurs can capitalize on these trends and develop successful enterprises in the UAE by combining experience, strategy, and execution.
How can Ascent Partners help?
Ascent Partners is a boutique consultancy providing bespoke, end-to-end corporate services ranging from company formation to accounting, bookkeeping, and compliance services for entrepreneurs looking to set up their next venture in the UAE. We work alongside to strategise, startup, and scale businesses in the UAE and the broader region.