The UAE has a thriving economy, and technological advances are creating exciting new opportunities for entrepreneurs. Of course, some industries are hotter than others. Therefore, entrepreneurs and investors must be aware of booming sectors to target with your new UAE startup.
In this article, we will discuss booming fields to target with your new UAE startup. We will look at three industries that are becoming highly demanded both globally and in the UAE. We will look at why they are so popular and how you can capitalize on them with your own startup business:
- Technology for beauty
- Artificial intelligence (AI)
- Real estate
- Immense opportunities to support financial services
- Video gaming marketing is growing at a faster rate than the global average
- Interior design is a profitable investment
- Restaurants and hotel chains
- Any type of consulting service is available
- Construction and related services are booming in Dubai
- How can Connect FZ help you?
1. Technology for beauty
In 2016, consumers spent more than USD 9 billion on beauty and personal care products, indicating that beauty is a big business in the UAE. According to research, this spending is expected to rise in the coming years. The top five categories are:
- Color cosmetics.
- Men’s grooming.
- Hair care.
The underlying growth, combined with new technologies and global trends, creates massive opportunities for UAE startup businesses and can result in large returns. Let us take a look at what is going on right now.
The underlying growth, combined with new technologies and global trends, creates massive opportunities for UAE startup businesses; and can result in large returns.
According to Forbes, global beauty consumers (primarily women) enjoy discovering new brands and seeking out locally made products. There is a clear trend toward natural and “free-from” products, particularly in skincare, as well as young, creative brands. Other major trends include the desire for quick fixes and the personalization of products.
1.1. How you can benefit from participating
The key is to incorporate modern technology, tools, and apps into your offering, which should be supported by beauty influencers on social media. Instagram is especially popular. Consider the following examples:
- “Hello Ava”, a young New York company, uses artificial intelligence and big data to help customers find the best skincare products. You take a quick online quiz (“chat with Ava”), and an algorithm generates personalized recommendations. A skin advisor will contact you two weeks after you place your order to see how you are doing.
- Another company (Patchology) makes skincare products using transdermal patch technology. The technology is derived from the pharmaceutical industry and is more effective than lotions or creams in delivering active ingredients to the skin. Patchology has over 68,000 Instagram followers.
Both companies place a premium on technology – Hello Ava bills itself as “the brains behind your beauty” – which appeals to tech-savvy millennial and Gen Y customers. Almost everyone wants to look beautiful, and a new technology-driven beauty startup can help you do just that.
2. Artificial intelligence (AI)
AI is a global game-changer that offers enormous opportunities for UAE entrepreneurs. According to PwC, it could contribute USD 15.7 trillion to the global economy by 2030, with the UAE accounting for USD 96 billion of that. The UAE government recognizes the importance of AI and launched an AI development strategy in October 2017.
Health, technology, and education are among the sectors covered by the strategy.
But what exactly is artificial intelligence (AI)?. It is a term used to describe computer systems that can sense their surroundings, learn, and act in response to their surroundings and other inputs. Examples include the Hello Ava chatbot mentioned above, as well as digital assistants like Alexa and Siri.
AI is causing market disruption in two ways. It enables the automation of processes, resulting in massive productivity gains, particularly in labor-intensive industries. And, as seen with Hello Ava, it can be used to improve products, such as by providing more personalization or saving customers time.
2.1. How you can benefit from participating
AI will have a significant impact on all industries and organizations. One way to benefit is to develop and sell AI technologies around the world with government assistance. Another option is to become an AI expert and offer technology consulting services to businesses.
They understand that AI will provide significant benefits, but they may lack the time or expertise to learn the technology themselves.
Another option is to examine your own industry or sector and identify ways in which AI could reduce costs, increase productivity, and/or improve products and services. Then, take your knowledge and start your own business. There are numerous global examples of AI to assist you on your path to success.
E-commerce is a massive global industry, with global sales of USD 1.86 trillion in 2016. They expect that figure to more than double by 2021. This year, online sales in the UAE are expected to reach USD 10 billion, up from USD 2.5 billion in 2015.
Also, e-commerce is a great option for investors. As previously stated, consumers are becoming more technologically savvy. They feel at ease using social media and apps to learn about products and interact with brands. The products can then be purchased online in very short steps – perhaps with just one click.
3.1. How you can benefit from participating
Start an e-commerce business in the UAE to be a part of this revolution. From there, you can focus on specific local markets or go global. You can also sell a diverse range of products or specialize in a specific industry. Software, electronics, beauty, clothing, and fashion accessories are all popular e-commerce product categories.
Using the most up-to-date tools, apps, and mobile technologies to connect with customers is critical. According to a recent survey, mobile devices, specifically smartphones, accounted for nearly 60% (USD 1.3 trillion) of global e-commerce sales in 2017. If you get your offering right, you have a huge opportunity.
Alternatively, you could go further back in the value chain and create these mobile technologies and apps to sell to e-commerce businesses all over the world. The possibilities are limitless.
4. Real estate
Sanjeevv Bhatia, chairman of SB Group and CEO of Netix Global BV, says that the year 2022 will have more:
- Market-driven developments.
- Increased proptech adoption.
- Retrofitting activities.
They predict that the real estate sector in the UAE will grow. They estimate that it will be 111 percent faster than the current market in the next five years. In addition, the increased interest in foreign investment and tourist attraction opens up more opportunities in this field.
Thus, the UAE economy is expected to grow in 2022. According to history, the country that hosts the Expo experiences steady growth in the months that follow. 93% of the UAE’s population is vaccinated, making the country a safer place to visit. This is why people are looking forward to visiting the country.
As the country’s culture is a perfect blend of East and West, this will provide a significant boost to the economy; which will be fueled by increased tourism and investment. All of this is due, in large part, to the UAE Government’s exemplary initiatives,” said Anis Sajan, vice-chairman of Danube Group.
5. Immense opportunities to support financial services
The UAE is densely populated by businesspeople. As a result, there is an ongoing demand for various supporting services. It provides numerous opportunities for auditors, accountants, bookkeepers, and others to make their mark in the region. With the proliferation of smartphones, a whole new sector of sites and apps has emerged.
These apps and websites are solely for smartphones. Innovators, such as Free Zone Company Setup in Dubai; who create financial services accessible via smartphones are aware of the sector’s rapid adoption. As a result, they create apps and websites.
On the other hand, Connect FZ can provide you with amazing ideas for your business in the UAE. Plus, if you want to learn more about free zones, we can provide you with the right assistance.
6. Video gaming marketing is growing at a faster rate than the global average
There are two types of areas that stand out for startups in the video game industry. The first is the need for content for well-known video game series. The other one, on the other hand, is the ability to create relevant games. The latter is an approach that has resulted in a cultural genre of video games.
Furthermore, traffic is an important consideration. The startups hope to make a name for themselves by including amazing animations and game designs.
7. Interior design is a profitable investment
Startups specializing in interior design will find fertile ground in the UAE. One of the most fertile markets is that of interior design. The interior design market is a competitive one. As a result, multiple startups carve out a niche.
The UAE offers a diverse range of business opportunities to entrepreneurs. As a result, this brings the process to a close-by encompassing the various sectors in which startups are making a significant impact in the UAE.
8. Restaurants and hotel chains
If you want to open a new restaurant or a new branch of a hotel, the UAE is a good place to invest. The business of hotel chains and restaurants is popular among booming sectors to target with your new UAE startup. This is because of increased investor interest and the UAE government’s additional investment in the field of tourism.
Plus, it is one of the booming fields to target with your new UAE startup in 2022. In addition to this, we can help you to obtain a restaurant license in Dubai.
9. Any type of consulting service is available
You may have the necessary knowledge about something; thus, you may want to start a consultancy service about it. And of course, the UAE is the place to do so. Over the years, there has been an increase in interest in this field, which can be a good business opportunity.
10. Construction and Related Services are booming in Dubai
The UAE has made great investments in order to improve its outstanding infrastructure. They desire to have the most impressive infrastructure in the entire Middle East. Hence, if you know about the construction industry and want to start a business in this field, the UAE is the right place to be.
The country offers many opportunities for good expansion and establishment. Dubai had over 3,200 active projects worth a total of USD 245 billion as of early 2017. This figure is expected to rise as we approach Expo 2021, which is expected to contribute USD 42.5 billion in construction projects.
Additionally, we can help you to obtain a construction license in Dubai. You will be able to establish a successful business in this field.
11. How can Connect FZ help you?
The UAE is an excellent place to start a business, especially if it is in a high-growth industry. In this article, we looked at some hot sectors and discussed how technology is shaping and developing them. We have also suggested ways for you to get involved – to take advantage of the opportunities and be a part of the success story.
Connect FZ is an experienced company formation firm. Hence, if you want to get some assistance in booming sectors to target with your new UAE startup, feel free to contact us.
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