E-commerce Driving Demand for Warehouses in UAE

September 14, 2023

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The evolution of the e-commerce sector has turned out to be a complete paradigm shift for the business world. The way of doing business has utterly changed as nowadays, people –customers as well as sellers and distributors– are inclining towards the digital platforms for capturing the attention of a wider audience.

From small businesses to international conglomerates everyone is jumping on this bandwagon to gain more customers,

This shift in the way of doing business has not only changed the buying patterns of the company but has also created new ways of making a profit for other, less-obvious business industries.

An example of such an obscure industry is the warehouse business industry that currently is an integral and inseparable part of the e-commerce sector.

The demand for warehouses is increasing proportionally with the growing demand and growth of the e-commerce business.

Correlation Between Warehouse and E-commerce

Demand for warehouses in the UAE is set to increase, bolstered by the growing popularity of e-commerce and online shopping.

The e-commerce division of business provides a unique and unparalleled experience for its users that has led to many entrepreneurs, foreign and local investment in this sector. Because of this, the government of the UAE has recently launched a free zone that is exclusively designed for the e-commerce industry.

On-time delivery, fast processing, and quality products all are the perks of online shopping that provide the customers with flexibility in their daily errands that were unimaginable even a decade ago.

As said earlier, the e-commerce industry is lifting the warehouse industry with it, and it has contributed a lot in molding this industry. The e-commerce business requires warehouses to store their raw materials, finished merchandise, and everything in between. Therefore, the warehouses need to be managed effectively so that business operations can run smoothly.

Over the years, several types of new warehouses have been created. Each of the newly created warehouse focus on a different business aspect, namely:

  • Centralized return centers
  • Customer Facing
  • Flow Warehouses
  • High Ceiling Facilities
  • On-demand Warehouses etc.

In light of these developments Lootah Real Estate Development in Dubai – one of the largest realtors of the city– have launched the first-ever lease-to-own project in the UAE. Through this entrepreneurs can easily lease an industrial warehouse thus, increasing the formation of e-commerce business in the UAE in the future.

This is excellent news for foreign investors as well as the UAE as a whole because the country is expected to attract more businesses by the end of 2020 as the World Expo 2020 is on its way armed with a wealth of business and investment opportunities.

Moreover, the UAE is the largest e-commerce arena in the MENA region and among the GCC states. In addition to that, the e-commerce sector is currently valued at $16 billion which is projected to increase to an impressive $20 billion by the end of 2020!

Having said all that, it is clear that the scope that lies for business investors and entrepreneurs to come forth and invest in the warehouse industry is indeed a profitable ploy. Setting up a business in Dubai has been made much easier and straight forward by the UAE government as they are very keen on grabbing the attention of foreign investors.

Ranging from a large business setup to a small retail business, there lies a great opportunity for investors to invest in the retail business. If you are looking into setting up a business in Dubai, then you can select the warehouse industry as your next grounds of investment as it holds immense potential and can prove to be quite a fruitful venture because of the high return on investment.

The Top Locations for Starting a Warehouse Business

The top locations for warehouse business in Dubai are:

  • Al Quoz
  • Ras Al Khor
  • Dubai Investment Park (DIP)
  • Al Qusais
  • Jebel Ali

Benefits of Investing in the UAE

A few of the advantages that you can benefit by setting up a warehouse business in the UAE are listed below:

1. Tax-Free Environment

One of the reasons why so many global investors are attracted to come to the UAE and invest in this region is its tax-free policies. These policies are especially suitable for entrepreneurs as there are no taxes on personal income earned.

Recently, the country has implemented VAT but it is at far-lower prices then its counterparts, which is a mere 5% as compared to 20%.

2. Multiple Markets

Since you will be in the warehouse business, you will have a wide range of customers from which you can choose from.

Ranging from hospitals to cafes to daycares, e-commerce platforms dealing in different businesses, retailers, you can target each of the segments to provide them the requisite services.

3. Low Cost ,High Revenue Generating Business

The warehouse business is one of the few low cast, high revenue generating businesses that you can start in Dubai. It provides you with multiple options to earn better revenue. By targeting various customers in different industries can help you in fetch your business to uplift your business revenue.

4. Easy Growth

Once you have started a business in the UAE and established your roots there, you can easily expand your business here in the UAE or other neighbouring countries of the UAE like Oman, Bahrain and Qatar etc.

Which will make it easier for you to tap into the international market and help you in understanding the stakes involved in dealing with international clientele and you can also excel in generating more customers for your business.

By now, we are sure that you must have got an overall understanding regarding the growth and investment opportunities that the warehouse industry holds.Choosing this business as your next business venture turns out to be a smart option as you can see that there are multiple opportunities for you to enjoy.

Now, moving forward alone turns out to be a bit of a complex task as the process involves documentation and legal scenarios with legal jargon that is impossible for a layman to fathom.Hence, Having a guide i.e., a business setup consultant who is well-versed with the business incorporation processes turns out to be fruitful as the complete process is carried out in a hassle-free way.

Setting up your own business in Dubai, or the rest of the UAE has never been more straightforward or easier. KWS Middle East takes care of all the tedious details so that you can focus on what really matters – making your business dream into a reality!

Contact Us and book our commitment-free consultation call with our team today!

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