Not only a favorable destination for tourists, Fujairah is also a prime location for economic progression. It provides ample opportunities for industrial growth and to both Emirati nationals and expatriates. You can start a warehouse business in Fujairah to facilitate the non oil/gas growth of the UAE.
Primary claim to fame of the coastal emirate of Fujairah is its gorgeous beaches and rolling hills. Also, it is home to the Hajar Mountains, which run through the country of Oman as well. These mountains add to the beauty of this emirate lying in the east of the United Arab Emirates.
Many investors get attraction to set up a business for manufacturing products in Fujairah. However, one of the common challenges that SMEs and corporations face alike is warehousing. As the storage is essential for most businesses, Fujairah’s government is providing excellent warehouse facilities that fulfill this specific need.
Considerations before setting up a warehouse in Fujairah
These are the six things to consider before setting up a warehouse business in Fujairah.
- Conduct market research
- Analyze the competition
- Identify the target market
- Hire skilled logistics staff
- Captivate the clients
Now, we briefly discuss these considerations.
Conduct market research
Always carry out proper market research before starting a warehouse business in Fujairah. Put your prime focus on assessing the logistics and supply chain sector, its key players and most importantly, your competitors. Also, it assists you in figuring out the current market trends and what makes the clients stick.
Analyze the competition
Keeping a close eye on the direct competition is something that newbie businesses always do. It helps them to know what others in the game are doing to get ahead. Also, the standing of your competitors confirms that your chosen area of business is indeed a profitable one.
Identify the target market
After thorough market research and assessment of direct competition, you can decide a profitable warehousing segment. Then, your company can focus on providing the absolute best storage service for that sector. Thus, you can niche down to boost your profit margin with warehousing in Fujairah.
Hire skilled logistics staff
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.
Captivate the clients
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. Satisfying a customer will spread your name all around the town. Thus, it provides you a free publicity in the form of word-of-mouth promotion.
Long-term planning
The company should always set their long- term goals so that they don’t become stagnant and stuck in the past. Hence, they miss out on opportunities because they were too content or too scared of taking a calculated risk. Where they would have definitely generated a profit.
Advantages of incorporating a warehouse in Fujairah
Not just a pretty face, Fujairah is playing a significant role in providing economic diversification in the UAE. The most crucial asset Fujairah possesses is the Fujairah port, the only multi-faceted port on the UAE’s eastern side. Following are some benefits of starting a warehouse business in Fujairah.
- Booming potential of warehousing
- Need of almost every business
- Seaport and airport access
- Customizable warehousing facilities
- Availability of tax free zones
- Variety of storage timelines
Next, we briefly look upon these perks of beginning a warehouse business in Fujairah.
Booming potential of warehousing
The growth of manufacturing and retail sectors is enhancing the potential demand for warehousing. It positions Fujairah as a promising location for supply chain operations across the UAE. The influx of foreign investments in the industrial sector of Fujairah is driving the logistics operations internationally.
Need of almost every business
Today, a warehouse is an absolute necessity for almost every type of business. This greater demand makes investing in the warehouse business in Fujairah an attractive prospect. The industrial growth of Fujairah and the greater UAE is set to turn this investment into a sizeable profit.
Seaport and airport access
The deep-water port of Fujairah provides easy access to major shipping routes in the Indian Ocean and beyond. It provides excellent connectivity for imports and exports through large shipping containers and logistics vessels. Fujairah International Airport ensures smooth movement of foreign entrepreneurs and goods worldwide.
Customizable warehousing facilities
Either, the businesses can settle for the pre-built warehouses in Fujairah. Or, they can lease an open land for custom construction of a warehouse from scratch. Subsequently, it empowers them with the opportunity to tailor their storage facilities to their specific operational warehousing requirements.
Availability of tax free zones
Free zones in Fujairah are the best choices for warehousing to the industries that export products outside the UAE. These free trade zones are offering 100% ownership to the international companies, thus cementing Fujairah as the ultimate business spot. Incentives like no taxation and relaxation in import/export duties significantly reduce operational costs for businesses in Fujairah.
Variety of storage timelines
Businesses can get two kinds of flexible warehousing facilities in Fujairah. They can choose from short-term (less than 90 days) and long-term (90 days or more) storage options. Accordingly, it lets them adapt their store-keeping and logistics needs according to market demands, that too without long-standing commitments.
Importance of the warehousing sector in Fujairah
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.
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.
Conclusion
A word of advice. If you are planning to set up a business in Fujairah or Dubai, the best course of action that you should opt is hiring business setup consultants simply because they can make your life much more comfortable.
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.
The best choice in this regard is KWS Middle East, they will deal with the tiresome part of the setup while you focus on building your business. Contact us today and book your commitment-free consultation call. For further queries email at info@kwsme.com now.
FAQs about starting a warehouse business in Fujairah
These are the answers to common questions on establishing a warehouse business in Fujairah.
Presently, almost all businesses need a warehouse, whether a large factory, a grocery store, or even a retail shop. Mostly, the businesses in the UAE’s manufacturing industry require warehousing facilities, as they need a place to store their merchandise. However, all kinds of businesses not having own storage for keeping their products can use a warehouse business in Fujairah.
Yes, Fujairah is experiencing a rising demand for warehouses, driven by its proximity to key shipping routes. Fujairah’s industrial sector is witnessing steady growth, with a 4.5% increase in logistics demand in 2023 (FFZA). The higher occupancy and rental rates of warehousing facilities in Dubai and Abu Dhabi has a spillover effect to Fujairah.
Fujairah is suitable for warehousing because of its strategic location near the Port of Fujairah, boosting global connectivity. The availability of 60,000 sqm warehousing facilities fully supports the growing industrial base of Fujairah and the UAE. Free zones in Fujairah provide flexible leasing, robust infrastructure, and tax incentives to warehouse businesses.
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