2021 is the year of recovery for Dubai and the UAE, the global economy has suffered a major setback due to the COVID-19 pandemic, and many countries around the world are still under lockdown, at the time of writing. However, thanks to the bold decisions and timely measures taken by the UAE government to curb the spread of panic caused by the pandemic, almost all businesses were back in business at the beginning of May 2020, contributing to the creation of thousands of jobs, the continuation of the SME sectors and the avoidance of permanent damage to the The economy and business continuity, and the government of the United Arab Emirates quickly opened the door to travel to various parts of the world, while adhering to the application of the necessary precautionary measures, which had a great impact in facilitating the return of people to their homes and being with their families.
The Dubai government has raced against time to advance the digital transformation of the majority of government services so that they are done digitally so that companies and commercial establishments can conduct their business smoothly and smoothly, and during this time, the government has taken major decisions to implement smart systems in all departments.
This pandemic has been a lesson learned from people and businesses that we can say has forced them to deal digitally with most if not all aspects of life and businesses. Technology has become the lifeblood of companies and governments around the world, and those countries and the most technologically advanced businesses have once again thrived with more strength and flexibility.
Meanwhile, Expo 2020 in Dubai has also been postponed due to COVID-19 and is now scheduled to take place in 2021. With such a major event approaching, a massive influx of tourists is expected during the year, and preparations are now in full swing at the Expo site. 2020 to make the highly anticipated event that Dubai is famous for.
The government of Dubai and the United Arab Emirates have also taken historic decisions in the field of international relations and extended bridges of cooperation with the countries of Israel and Qatar in the field of trade relations. Undoubtedly, these steps will create opportunities for huge commercial investments for companies located in the United Arab Emirates.
Recently, the government of the United Arab Emirates announced the granting of Emirati citizenship to expatriates, an unprecedented decision that paves the way for many individuals to make the Emirates a permanent home for them, their families and future generations, and this step will surely lead to injecting billions of dollars into the economy and keeping them in the UAE, Thus increasing the number of permanent population in the UAE and reducing the unstable population rate, and eventually increasing the demand for all goods and services needed to enhance the livelihoods of the people.
The Financial Times recently announced that Dubai ranks third globally and second in the category of megacities as part of the “Global Cities for FDI in the Future 2021/2022” report, consolidating its position as the best city for investment and business growth, and confirming its resilience even during the global economy. troubled.
The UAE government has also approved vaccines against the COVID-19 virus to limit its spread, and people residing in the UAE have already started receiving the vaccine, and the government has made huge arrangements to make this process as fast and simple as possible.
Dubai’s economy is expected to grow by 4% in 2021, recovering from last year’s downturn (according to Dubai Statistics Center forecasts).
Helps businesses establish commercial services provided by the Flying Color GroupInstitutions and individuals have been in the business of setting up businesses in the UAE since 2004, and we are now proud to have a team of 60 experienced professionals thanks to which our organization provides superior quality and seamless services in the field of business setup and corporate structuring across all UAE jurisdictions. , whether it is mainland companies, free zone or offshore company, our organization also provides shareholder / UAE National Service Agent service for mainland companies and our organization advises on structuring, using funds, foundations, special purpose companies and others in the financial districts Freelancers such as the Dubai International Financial Center and the Abu Dhabi Global Market, our organization also helps in opening bank accounts and registering trademarks; It provides accounting and VAT related services throughout the United Arab Emirates.
We are fully aware of the difficulties and hassles that an entrepreneur goes through in order to establish the right type of company without falling into the trap of wrong advice which leads to wasted time, money and other business opportunities, and based on our current observations dealing with the local market in the UAE, we have come up with an analysis It is based on facts and figures about the business sectors that can thrive during 2021 and beyond in Dubai-UAE.
The information provided in this research is our feedback only and anyone should make use of this information after discussing the specific business plan with us.
Unprecedented circumstances and the once-in-a-lifetime experience of the COVID-19 pandemic have fundamentally changed the way we live and work, however, entrepreneurs will surely reap the rewards of the opportunities created by these unprecedented circumstances that otherwise would not have existed.
As a culmination of the aforementioned, here are the twelve business sectors that could thrive during 2021 and beyond:
E-commerce industry – online sales of products/services
During the year 2020, people were surprised to be confined to their homes for weeks and months in some places; A situation many thought far-fetched, businesses, schools, parks, entertainment venues, and daily utilities shops were closed.
During this time, online business was a great convenience and in many cases, almost a necessity for people to purchase products or services necessary for daily life, and this has pushed the current e-commerce companies towards facing new challenges, coinciding with achieving new levels of success. And growth, as people have now abandoned the traditional mindset of touching, testing, trying or smelling products before buying them, a tradition that can now be considered outdated and somewhat unhealthy due to Covid-19 precautions, and the e-commerce model has also proven to be profitable for business, as It allows entrepreneurs to keep startup costs low.
Consumers also find it convenient to use e-commerce platforms, which saves time and cost of going to real stores. E-commerce has also made it easier to scale business at a lower cost unlike real stores. Many new e-commerce ideas are circulating in people’s minds. Which enjoys the support of investors, as it is no secret that e-commerce is the future.
Tourism and hospitality industry – yacht rentals, hotels of all categories, hotel apartments, cloud kitchens, restaurants, online booking platforms, car rentals, etc., the demand for businesses will increase
Dubai, as a global hub for tourism, has been seeing an influx of tourists since December 2020. Dubai has also recently hosted successful trade fairs such as GITEX which allowed people to visit the exhibition stands for themselves, and all these successful experiences led to the rise in tourism and hotel bookings once again.
As the Expo 2020 becomes imminent, the possibility of achieving a stable population rate increases due to the announcement of the granting of Emirati citizenship, and all work related to the hospitality sectors is expected to operate during 2021. According to a CNBC report issued on December 17, 2020, Expo 2020 organizers expect to visit more than 25 million visitors during the 6-month period of this event, despite concerns about the impact of the pandemic on global travel and tourism, which is a huge number and could lead to increased demand for the hospitality industry.
Establishing international trade relations with Israel and Qatar will also increase hospitality demands in the UAE, moreover, in 2022 Qatar will host the FIFA World Cup, which is expected to attract many visitors not only in Qatar, but also in the UAE. United
Real Estate and Construction – Real estate development, real estate brokerage, civil construction and other engineering works, infrastructure such as road and bridge development, construction work and building materials trading
The real estate market has already started to witness a rise in demand in the first month of 2021. The Real Estate Regulatory Agency (RERA) in Dubai has already implemented many strict rules protecting the business interests of developers and buyers. Since 2007, all real estate brokers and brokerage firms have been licensed by the Real Estate Regulatory Agency. All real estate development companies are licensed by the Real Estate Regulatory Agency, and no off-plan project can be sold until after opening an escrow account. Law No. (13) of 2008 regulates the off-plan sale of real estate and protects the interests of the buyer and developer. A lot of construction activity is underway because of the Expo 2020 event as well.
Real estate transactions in January and mid-February 2021 were already higher than in the same period in 2020, according to the Dubai Land Department website.
The above factors, in addition to government policies regarding citizenship benefits and investment in real estate, can increase the demand for real estate transactions, and thus industries related to development, consulting, engineering consultancy firms, contracting and trading.
Electronic cigarettes, smoking devices (vaping) and e-liquids trade
The Dubai government has allowed the sale of e-cigarettes, smoking devices (vaping) and e-liquids in the local market, and the new legislation came into effect in April 2019 known as UAE S 5030, and it had been banned before, this opened the door for manufacturers and traders from all over the world to enter To an untapped market, but with high potential, and to get the maximum share of the business in the early stages, all these products must be approved by the Emirates Authority for Standardization and Metrology in Dubai, and this business is expected to flourish in 2021 and beyond, as the market for this grows Products globally and within the UAE.
Healthcare industry – specialty clinics, pharmacies and hospitals
The existing medical infrastructure in Dubai and the UAE has played an important role in successfully combating COVID-19, and doctors and healthcare staff along with the Dubai Health Authority (DHA) and the Ministry of Health (Ministry of Health) have played an extraordinary role in protecting the lives of people in The United Arab Emirates, making Dubai and the United Arab Emirates on the world map a safe place to live.
Revenues from the UAE healthcare industry are expected to grow at a rate of 7.5% (CAGR) for the next five years, and sales in Dubai are expected to reach US$10.7 billion in 2021 due to the high demand for preventive medicines, she said. It was reported by the Dubai Chamber of Commerce and Industry and reported by Arabian Business.
Medical tourism revenues are expected to reach AED 8.4 billion in 2021 and grow at a compound annual growth rate of 17.1% for the next five years. According to the International Center for Healthcare Research, Dubai is ranked sixth out of 46 global destinations according to the Global Medical Tourism Index 2020-2021.
The government has also taken an approach to develop healthcare infrastructure to a level where the country is able to recover from any similar potential shocks such as COVID-19.
All these standards will increase the demand for clinics, hospitals and pharmacies in Dubai and all over the UAE.
IT Industry – Software Development, Cyber Security, Artificial Intelligence, Internet of Things, Blockchain, Digital Transformation
Technology has become an integral part of any business, and business will not be able to thrive and grow anymore without the application of technology, and in a highly interconnected world, no sector of the economy will be untouched by technology and only those who adapt quickly to technological change will survive.
Dubai and the federal government have also adopted a fast-moving approach to harness all available technological developments and thus change their policies. The Dubai government has launched the Smart Dubai Initiative 2021 to prepare Dubai to embrace the future, under the guidance of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai The Smart Dubai Office has transformed the city by revolutionizing how government services are accomplished by linking several government departments and adding 1,000 smart services, in order to achieve the goal of making Dubai the happiest and smartest city on earth. Ahead of the government to bring happiness to people using the best of technology will surely enhance the implementation of technology in businesses from the smallest to the largest across all their business operations in the city.
Regardless of any short-term benefits of Expo 2020, any company that provides IT services, be it software development using all modern AI technologies, Blockchain, Internet of Things, and data analytics will continue to thrive according to its ability to also keep pace and attract assets Humanity is equipped with this modern technological knowledge and in the internet economy, it is certain that cybersecurity companies will have to play a major role in protecting people from any cybercrime threats.
Retail stores such as hypermarkets, supermarkets, grocery stores, exclusive stores, specialty stores, department stores, general merchandise stores, and businesses such as the trading of specific products or general trading and related logistics
Dubai is expected to become the largest mall in 2021.
Retail and trading activities drive the overall economy of Dubai, Dubai ranks first in the presence of global retail stores as 62% of global brands have a footprint here, and the retail sector is expected to thrive even in light of the growing digital transformation during COVID-19, as well as The progress and growth of e-commerce platforms.
It appears that there is an increasing coexistence between e-commerce platforms and the retail industry, and while the retail industry has taken a global hit, especially during the pandemic, this industry is expected to continue and coexist alongside e-commerce platforms, as the retail sectors should be. Retail is now more innovative and technologically advanced.
Retail stores still offer a wide range of merchandise from various international brands that may not be available on online platforms.
International retailers also release special edition products in Dubai only which creates special demand from tourists, retailers should also keep in mind that people living in Dubai and tourists are familiar with the brand.
Dubai is strategically located between Asia, Africa and Europe, making it convenient for air and sea trade and logistics services that boost commercial activities, this strategic advantage along with the influx of tourism will help the prosperity and brilliance of retail stores and shops in Dubai.
Trade brokers from all over the world prefer to buy and sell large quantities of products through traders based in Dubai to benefit from the access to the basic level of the global community of traders.
Business owners also have to innovate and innovate in the experience they will provide to the customer through their physical stores and they will have to provide an experience that will keep the customer and keep them coming back again and again.
In general, any commerce-related business will continue to reap the benefits through 2021, and any retail store will function well if the store location is carefully completed with a consumer mindset and the products to be offered.
Courier, courier, transportation and logistics services
Complementing the growth of tourism and e-commerce, the areas of delivery and transportation services are naturally expected to grow.
The effects of Covid-19 were the main reason for the consolidation of the growing areas of food delivery, product delivery and courier services 19, and more permanent markets could have existed for the same reason.
The courier market in the UAE is expected to grow 7.5% annually according to an article by CBN ME.
The transportation and logistics business has been at the heart of the UAE market for decades as the UAE’s location on the world map, along with global ports, marine facilities, aviation and roads, ensures that the industry remains a growing sector.
The field of education such as e-learning, training institutes and nurseries
The COVID-19 pandemic has changed the fundamentals of physical education systems in the classroom. Most schools and universities have implemented online lessons.
Any field of education that would provide an extraordinary consumer experience in delivering high-quality study content through computer screens/mobile phones/tablets is likely to become a profitable field, and this will require the good integration of technology with the development of intelligent study content that can contribute to Develop students’ overall personality along with subject knowledge, while staying home and away from physical interaction, and such challenges will reveal huge job opportunities for early entrants to the digital educational business.
Cleaning and sterilization services
The Corona virus caused a sudden revival in the cleaning services business in 2020 and is expected to continue in 2021, as disinfection and cleaning become more important as people flock to shopping malls, cafes and workplaces, but with the precautionary measures imposed by the government, which include continued sterilization.
Globally, hotels, restaurants, cafes and public transportation are required to comply with the new cleaning guidelines, all hospitality companies must ensure the highest level of cleanliness to rebuild consumer confidence, and the demand for business related to cleaning services will increase for many years to come.
Professional services such as management consulting, human resource consulting, event management, auditing and accounting services
Dubai and the UAE will continue to be an attractive place to do business and the postponement of Expo 2020 will provide great enthusiasm for new business to continue to thrive in 2021.
The signing of the “Abraham” agreement in September 2020 and the subsequent normal relations between the UAE and Israel represent a new dimension in the UAE economy, and the demand for all kinds of consulting services will remain high, however, consulting firms have to implement advanced digital capabilities and quality customer services Consulting firms will also need to provide specialized advisory services to price-conscious clients.
Dubai and the UAE have a very high potential for all kinds of consultancy services, considering that thousands of Expo 2020 visitors will be looking for such services as they look to consider the UAE as their next business destination.
Manufacturing and agricultural facilities
Industrial activities are increasing in the UAE to achieve sustainable diversification under the UAE Economic Vision 2030, and the government has set a target for the manufacturing sector to contribute to the total GDP to increase from 10% currently to 25% by 2025.
The manufacturing sector will grow very quickly under the government’s self-sustainability and diversification plan. The Dubai Industrial Park occupies an area of 55 square kilometers and is the best testimony to the government’s bold policy and support for the development of the manufacturing sector.
The agricultural industry in the United Arab Emirates is expected to grow, with the support and incentives of the government to develop this industry and make it a sustainable agricultural industry in general.
We have previously outlined 12 sectors that are expected to thrive in 2021 and beyond, so if you are looking to invest or start any new business in any of the mentioned sectors, please come back to us for personalized advice.
This article was written by Mitt Joshi – CEO of Flying Color Business Startup Services
For any inquiries related to setting up a business in Dubai and all over the UAE, please inquire via this link
*Note: This article was published on February 17, 2021. The information in the article is based on the policies and rules in force at the time of writing. This article is provided as information only and should not be treated as advice