The United Arab Emirates is the land of opportunities, rewarding anyone who dares to set up a business here. Due to its massive appeal for up and coming start-ups and established corporations, the UAE is enjoying an economic boom like never before. As everyone knows, the manufacturing sector requires a separate space where the company can store its stock, raw materials, unfinished products and the end product. The manufacturing industry cannot function without a warehouse. Not only the manufacture and production sector but the retail and import-export industry, as well as many other business division, require a warehouse for their operations.
It can easily be observed that the rapid increase of business setups in UAE has created a secondary demand for warehouses, which has resulted in an exceptional boost for the warehouse industry. In the coming future, the Middle East will have an immense influx of foreign investors, with many multi-national organizations opting to relocate their headquarters here, and subsidiary companies will also become the norm. That will further increase the demand for warehouses.
Read More: How to Open A Warehouse Business in Dubai.
Fujairah as a hot spot for Warehousing Sector:
The UAE has anticipated the rise of the warehouse sector and planned accordingly. First and foremost the Fujairah Free Zone Authority (FFZA) which is 100,000-meter sq. in size will offer exclusive tax relaxations and exemptions to companies interested in the logistics division as FFZA is transforming itself into a logistics park. They will also provide lowered terms and conditions. And are rapidly becoming the preferred location for business setups looking for warehousing facilities.
Following are six things to consider before setting up a warehouse business in UAE:
1. Conduct Market Research:
- Always conduct market research before starting a business of any kind. Your prime focus should be analysing the playing field, its key players and most importantly, the opponents. It will also assist you in figuring out the current market trends and what makes the customers tick?
- Make sure your investment is not entirely wasted; it is recommended that you should strike up an alliance with a local business that has qualities and resources that will help your business setup.
2. Check Out The Competition:
- A close eye on your competition is something businesses have always done. It is an excellent way of knowing what others in the game are doing to get ahead. And what is lacking in your strategy? The direct competition will also confirm that your chosen area of business is indeed a profitable one.
3. Identify the Target Market:
- Thorough market research and assessment of direct competition you will be able to assess which particular sector will be most profitable for your setup after finalizing the, sector. Your company can then focus on providing absolute best service to said sector alone. That will, in return, boost your profit margin.
4. Hiring Skilled Employees:
- The success of any business depends utterly on the kind of employees it has. Because an employee that knows exactly what their job entails is an asset to the company, especially if that employee can quickly adapt to the changing business landscape. The employees should be loyal to the company as they will be a party to many secrets that are critical for the success of the setup.
5. Captivating Customers:
- Marketing of your warehouse business will make or break all your previous hard work. A proper marketing campaign can give you a head start that will surely pique the customer’s interest. If you think you are not capable of doing it yourself, then it is advisable that you hire a marketing company that will do it for you.
- Another way to capture customer is to provide the best service to all that will leave your client satisfied and content. A satisfied customer will spread your name all around the town, thus providing you free publicity!
6. Long-Term Planning:
- The company should always set their long- term goals so that they don’t become stagnant and stuck in the past and hence, miss out on opportunities because they were too content or too scared of taking a calculated risk which would have definitely generated a profit.
If you are planning on setting up a business in the warehouse division, Hiring of business setup consultants like KWS Middle East is advised for a smooth business incorporation experience. KWS Middle East is the one-stop-shop for all your business needs.
Contact us today and book your commitment-free consultation call with the team!