Although some industries could not increase their number during the COVID-19 pandemic, some others could. And the best example of this is the UAE retail business. In other words, this industry boosted its sales despite the global pandemic situation. Therefore, if you are planning to establish a retail business, here you’ll find the information you need.

In this article, you will learn everything you need to know about the UAE retail business. For instance, here you can discover the elements that made it boost its sales during the Coronavirus emergency. Besides, you’ll also find relevant information in case you want to open a retail business in the UAE. Let’s observe:

1. What is the retail industry in the UAE?
2. Types of businesses that are considered retail.
3. What is the importance of the retail sector in the UAE?
4. How did the retail business owners increase their sales despite Coronavirus?
5. What is the future of the retail business in the UAE?
6. Why should retail business owners take their businesses into the digital markets?
7. How can you set up a retail shop in Dubai?
8. Requirements to set up a retail business in the UAE.
9. How can Connectfz help you set up a retail business in the UAE?

1. What is the retail industry in the UAE?

This kind of business is probably the most common one in the world. The retail business is about selling finished products to consumers in exchange for money. Consumers are usually end-users and they can buy products or services through multiple distribution channels. For instance, retailing occurs usually in retail stores or service establishments. However, it could also occur through electronic channels, vending machines, and more.

Even though the term “retail” is usually related to the purchase of goods, it also involves service providers. For instance, some retail service providers could be related to banking, private education or healthcare, tourism, insurance, etc. Besides, some of these providers could have retail or wholesale divisions.

However, during the COVID-19 pandemic situation, many businesses were affected by it, either for better or for worse. In the case of the UAE retail business, it was not affected for worse. On the contrary, it increased its numbers despite the emergency situation. Keep reading this article to find out how it did it.

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2. Types of businesses that are considered retail.

First, it is important to identify the most common retail-related businesses in the UAE. For example, supermarkets and grocery stores are some of them. These stores sell a wide variety of food and non-food products. Also, their sizes could vary from small family markets to large establishments.

Besides supermarkets and grocery stores, general merchandise stores are also retail businesses. Consumers can purchase a variety of goods in these stores. For example, they can buy clothing, toys, auto parts, sporting goods, and many other products. Restaurants and dining establishments are also retail businesses.

Although the pandemic situation affected many industries, these stores never stopped operating. However, the way in which it used to operate changed a lot during the last few months. Electronic channels were the most convenient purchasing method for consumers to acquire products. During the last years, e-commerce has been growing exponentially, but it reached its peak during the Coronavirus pandemic.

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3. What is the importance of the retail sector in the UAE?

The UAE retail business involves all selling and resale activities of new or used products. Retail stores can benefit both the investors and the consumers. For instance, consumers can have access to a variety of goods that are necessary for them. On the other hand, investors can build a sustainable business with profits that are worth it.

Besides, this business has an immense impact on the economy. Firstly, this industry involves high annual sales and employment. Secondly, the retail business is crucial in the supply chain, which also involves customers, manufacturers, etc. Thirdly, it provides scope for expansion in other countries, allowing investors to grow internationally. Also, retailing has always been an integral part of modern society and people highly depend on it.

Although some things have changed, the UAE retail business made it and survived the COVID-19 crisis. We could say that it evolved during the emergency situation from retail to eTail. However, we will now focus on how it boosted its sales during the pandemic situation. Let’s keep moving forward to the next section.

4. How did the retail business owners increase their sales despite Coronavirus?

Although the Coronavirus crisis deeply affected some businesses, the UAE retail business did not stop growing. However, there were indeed some challenging situations in which the investors had to adapt to survive. Last year, the UAE Retail and Malls Think Tank made a report in which it highlights these challenges. According to it, the retail business had to face them to make it a more sustainable sector.

These challenges that the industry had to face include increasing the collaboration between retailers and mall owners. Also, it was essential to accelerating the digitalization of the retail sector. And lastly, it was necessary to legislate to safeguard workers and businesses from future disruptions.

However, the most important element that helped retailers to survive this crisis was digitalization. Moving their operations to the digital platforms helped them to keep operating without taking risks. Most importantly, it was a better way to keep selling goods without contributing to spreading the virus.

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5. What is the future of the retail business in the UAE?

The UAE and its countless malls and retail shops have attracted millions of consumers from all around the world. The country has dedicated its resources and thousands of square feet in retail space. In the case of Dubai, it has 55.7% of international retailers. In other words, the UAE retail business is probably the most important sector in the country.

During the last decades, this sector has experienced a massive transformation in the UAE. This country is known for being the biggest trader in GCC and the world. Although there’s active competition globally, it’ll keep holding this title if it continues with its retail growth. Also, it’s important to mention that it is home to some of the biggest brands in the world.

However, the development of e-commerce has helped it to continue growing. The retail business in the UAE can carry out its operations more efficiently by using electronic platforms. Besides, it’s an extremely effective way for investors to expand their retail business. Also, if the Coronavirus situation continues, eTail will be the best way to survive and succeed.

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6. Why should retail business owners take their businesses into the digital markets?

Since the modern era is about digitalization, the UAE retail business will not be an exception. The best in which this industry can survive the Coronavirus situation is using electronic platforms. Besides, changing from retail to eTail can bring many advantages, including business growth and expansion.

Taking your retail business to a digital platform is essential to entering B2C markets. Besides, it also has the advantage of being a simple and straightforward way of selling goods and services. Moreover, an online presence can also improve your company’s image and increase its visibility. Building a closer relationship with customers is also possible if your business has an online presence.

Having an online presence will allow you to attract more customers from everywhere. Besides, no virus emergency will interrupt your business activities. However, it is important to know all concepts before moving your retail shop to a web store. Also, you must consider every detail that you want to include.

After taking into account every detail, you need to consider the necessary investment and available options. Then you’ll be able to develop a marketing strategy and plan the content that you desire to share. However, you can always ask for professional help to develop this stage of your retail business.

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7. How can you set up a retail shop in Dubai?

If you have decided to start up a retail business in Dubai, here’s what you need to know. The UAE company registration is essential to set up any type of business. Therefore, we will explain the steps you must take to complete the process. If you follow these instructions, you’ll be able to start operating your retail business soon:

• Learn about the retail sector in the location you want to set up your business. You must consider every detail in order to establish a successful company. For instance, you need to consider the location, demand for the goods or services you will offer, etc. Also, finding relevant information about these elements will help you make a business plan.
• In case you want to operate in Dubai Mainland, you must find a local partner or sponsor. Your partner must hold 51% of shares. The owner of the company will hold the remaining 49%.
• After these steps, you must prove your financial capability to the Ministry of Commerce. Therefore, you must prepare your financial resources before you start building up your business.
• You must also apply for a business license and obtain the necessary approvals from the DED. In the case of the retail sector, investors must apply for a trade license.
• Select your location or jurisdiction. In Dubai, you can choose between free zones, mainland, and offshore.
• And lastly, choose a business name for your company and submit the required documents to finish the process.

Here you can find the information you need regarding the company formation process in Ras Al Khaimah.

8. Requirements to set up a retail business in the UAE.

In order to complete the company registration in UAE free zone, you must gather and submit certain documents. For example, these are the main documents you will need:

• Passport copies of all managers and shareholders.
• No Objection Certificate (NOC).
• Proof of address of each shareholder.
• A copy of the UAE residence visa, if applicable.
• The lease agreement or title deed for the business site.

9. How can Connectfz help you set up a retail business in the UAE?

In case you desire to establish a UAE retail business, ask for the help you need. With Connectfz by your side, the setup process will be more efficient and faster. Besides, our specialty is to give professional advice and offer the packages you need. Also, we can help you select the most suitable free zone and the licenses you require.

We offer a variety of packages that include visas and licenses to fulfill your requirements. Besides, you can choose between many available free zones in different emirates. Although all of them are ideal locations for retailing, Dubai is usually the best of them. Take your time to examine each option or ask for our advice.

On the other hand, we can also offer the services you need to make improvements in your company. For example, if you need high-qualified employees for your business, you can request our recruitment services. Or in case you need to enter the local market quickly, try using our UAE market entry services.

Would you like to contact Connectfz to know more about the retail industry in the UAE and the process to build a company related to it? If you have any questions, call us on +97143316688. You can email us at info@connectfz.ae, and you will talk to one of our representatives who will answer your questions.