The United Arab Emirates (UAE) has continuously utilized its potential to expand its business horizons. The business incorporation concept has radically transformed under the Emirati Government’s visionary leadership. The UAE has established specialized segments and dedicated regions nationwide to cater to specific business industries. While petroleum remains a significant source of revenue, the country has long been striving to diversify its economy. Oil exports contribute up to 85 percent of the UAE’s economy. Thus, let’s learn more about the top 10 industries in UAE for establishing a business.
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The UAE has made significant progress in pursuing foreign direct Investment (FDI), climbing three positions to rank 27th globally in 2018. The country is actively diversifying its market and attracting more international investments.
we will explore the benefits of incorporating Enterprise Resource Planning (ERP) software in various sectors to significantly improve efficiency and streamline operations.
Here are the top 10 industries in UAE with a promising future:
UAE Oil and Gas Industry:
The most vital sector in the UAE’s economy is its oil and gas Industry. It contributes to 34% of the total GDP. As per the International Trade Administration, the UAE is one of the top 10 worldwide crude oil producers, producing approximately 3.2 million daily barrels.
Various factors have played a substantial role in drawing investments in the oil and gas industry in the UAE. These include advantageous low taxes on corporate profits, absence of currency restrictions, well-developed infrastructure, and access to advanced technology. As a result, multinational oil companies have heavily invested in this sector in recent years. Additionally, the government’s substantial investment in research and development (R&D) has been instrumental in ensuring sustained growth in the industry.
Despite the continued dominance of the oil and gas sectors in the UAE’s economy, the country has taken a noteworthy step towards environmental responsibility. It became the first Arab state to set a net-zero emission target by 2050.
UAE Construction Industry:
The construction industry in the UAE holds a prominent position in the Emirates region, playing a crucial role in driving economic growth. It takes place second in the top 10 industries in UAE. With steady growth in recent years, the market size of this industry reached $81 billion in 2021. Analysts predict a 3% Compound Annual Growth Rate (CAGR) from 2023 to 2026, indicating its ongoing expansion.
The ambitious development projects have primarily fueled the UAE’s construction boom, including iconic landmarks like Burj Khalifa, Palm Jumeirah, Dubai Marina, Abu Dhabi International Airport, and others throughout the country. In addition to grand projects, the construction industry also caters to the demand for residential housing from local and international investors seeking properties in this region.
The growth of the construction industry can be attributed to several factors, such as a strong government emphasis on infrastructure development and the availability of a large pool of skilled labor to support these ambitious projects.
UAE Real Estate Industry:
In recent years, the UAE’s real estate industry has experienced remarkable growth, characterized by its dynamic nature. The government has actively introduced various initiatives to attract investments in this sector. Consequently, it makes it an appealing option for foreign investors.
The strong demand from buyers and investors has increased property prices in major cities like Dubai and Abu Dhabi. The construction of real estate projects, like malls, residences, offices, commercial complexes, and hotels, significantly contributes to the country’s economic activity.
UAE Tourism Industry:
The UAE is a prominent tourist destination renowned for its stunning beaches, luxurious hotels and resorts, captivating theme parks, and rich cultural attractions. In recent years, the country has experienced a notable influx of tourists, with 12.82 million visitors traveling to Dubai and other Emirates from January to November 2022. Overall, it shows substantial growth compared to 7.28 million international visitors in 2021.
This tourism growth is attributed to increased investments in tourism-related infrastructure, such as airports and transportation systems. The sector also benefits from more than 400 airlines operating to various destinations worldwide. Moreover, numerous Dubai-based tour operators offer tours across the UAE and other countries in the region. Further, they help boost the tourism industry.
UAE Logistics and Transportation Industry:
The logistics and transportation sector has grown significantly, including cargo shipping, air freight companies, port operators, and ground transportation providers. Rising international trade demands and efficient goods movement in the region, particularly in Dubai, drive this growth. By 2026, the UAE logistics market is projected to exceed $16 billion.
Strong government support for infrastructure development, technological advancements, and the flourishing of international trade activities have been credited to the rise of the UAE logistics and transportation industry. Finally, with the development of ports as crucial trans-shipment hubs connecting Europe and Asia, the UAE has emerged as a pivotal global shipping center.
UAE Financial Services Industry:
The UAE’s financial services industry has experienced rapid growth fueled by foreign and domestic investments. Among the key components of this industry, the banking sector stands out, with over 50 banks providing a diverse range of products and services to local and international customers. Moreover, investment funds have gained popularity among investors seeking reliable means to diversify their portfolios and safeguard their wealth. This trend has attracted an influx of private equity firms, venture capital companies, and investment banks to the country. As a result, it creates an environment supportive of diverse business ideas for entrepreneurs in Dubai.
UAE Healthcare Industry:
Because of a growing influx of foreign visitors and expatriates, the healthcare sector in the UAE boasts advanced medical facilities in the region. It is also equipped with state-of-the-art technology and services. The government’s dedication to healthcare reform initiatives has spurred investments, significantly increasing private hospital beds across various emirates. Additionally, Dubai Healthcare City, a free zone exclusively dedicated to healthcare development, has attracted several large international companies. Also, it fosters innovation and delivers quality treatments to all residents. Dubai Healthcare City is home to 10 hospitals and 168 clinical facilities.
The implementation of Healthcare ERP enables the seamless management of patient records, appointment scheduling, inventory, and billing processes. This streamlined approach fosters efficient healthcare delivery, leading to improved patient care outcomes.
UAE Retail Industry:
The UAE retail industry has witnessed steady growth in recent times. Consumers have shifted their focus from price to product quality and lifestyle, leading to substantial increases in their spending levels. The first quarter of 2022 saw consumer spending rise by 14%, indicating the potential for sustained growth. The country boasts some of the world’s most iconic shopping malls, with the Dubai Mall, one of the largest malls globally, serving as a prime example.
ERP software streamlines inventory management, order processing, and CRM while facilitating seamless omnichannel operations and personalized customer experiences. Real-time tracking, route optimization, fleet management, and warehouse oversight enhance supply chain efficiency and customer satisfaction.
Fashion Products and Jewelry:
The Middle East is renowned for its abundant supply of precious metals. Thus, this feature makes it an ideal market for luxury goods like beauty products and perfumes. The UAE offers an excellent opportunity to thrive, whether launching a new business or expanding an existing one.
Hotel Chains and Restaurants:
Investing in the UAE for opening a new restaurant or hotel branch is a lucrative choice. The hospitality sector, including hotel chains and restaurants, is experiencing a significant boom due to growing investor interest and additional tourism investments by the UAE government. This industry is projected to be one of the booming sectors to watch in Dubai in 2022.
The Bottom Line
The UAE hosts a diverse range of vibrant and dynamic industries within the MENA region. All these sectors hold significant importance in the country’s economy, from oil and gas to construction, tourism, real estate, logistics and transportation, financial services, healthcare, and retail. Together, they foster a thriving business environment that appeals to investors worldwide.
The UAE is an aspiring destination for entrepreneurs seeking to establish a new business or expand their operations in the Middle East. It presents highly attractive investment opportunities and a multitude of versatile business ideas. Study the list of the top 10 industries in UAE for acquiring knowledge on UAE Market.
Emerald comprises a team of highly experienced professionals with cutting-edge expertise in various fields, including management consulting with over two decades of experience. We specialize in offering business setup services for locations in Dubai, UAE. If you are considering starting a business in the UAE, don’t hesitate to contact us now for assistance.
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