Running Head: SMALL BUSINESSES IN THE UAE

Small businesses in the UAE

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SMALL BUSINESSES IN THE UAE

Small businesses in the UAE

Background: What makes the UAE ideal for small businesses?
The United Arab Emirates (UAE) is a focal point for businesses around the world,
with its commercial capital, Dubai, enabling access to almost 1.5 billion consumer markets
around the world (IBP International, 2013). This includes countries in Africa, CIS countries,
Eastern Europe, and West Asia along with the Middle East countries (IBP International,
2013). The major reason people throng UAE is its favorable economy, that is, seeking jobs
and setting up businesses. Dubai is among the top locations for investors and businesses,
because UAEs policies and high-tech infrastructures in the city are meant to encourage the
expansion of small businesses and large corporations (IBP International, 2013). The foreign
investors with small businesses are welcomed into the UAE, because they contribute to the
nations economy significantly. The nation provides a large number of free trade zones,
especially in Dubai, which allow the expansion of commerce and trade (IBP International,
2013). In fact, setting-up a business in the UAE is simple and uncomplicated, because of the
modern and revolutionary policies and the oil-rich government that can provide tax havens to
businesses as well security and easy transportability. The only sectors taxed in the nation are
banking, oil, and tobacco (IBP International, 2013). In addition, the business laws in the
nation favor the progress of small businesses (IBP International, 2013). The UAE government
clearly believes in having a long-term plan and anticipates a highly developed economy by
developing small businesses, thus ensuring that the nations economy is well supported for a
long time.
Discussion: The Best Small Businesses that Can Flourish in UAE
Perhaps the best business opportunity for developing in the UAE is construction,
since the nation is highly focused on creating new structures to make it the business center of

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the East (Oxford Business Group, 2014). UAE was once a desert, and while cities like Dubai
do not seem anything like a desert, the fact remains that other than a few cities, the nation is
mostly comprised of deserted lands. The government is keen to change the landscape and
make the nation into a booming commercial center. Consequently, engineers and other
professionals in the construction sector can start new businesses with a good scope in this
field (Oxford Business Group, 2014). Similarly, businesses associated with manufacturing
and selling of raw materials employed in building and construction can thrive in this
atmosphere (Oxford Business Group, 2014) The negative side here is, however, the gross
human rights issues that have been associated with the construction sector in the nation
(Ghaemi, 2006). Another industry for setting up small businesses is oil and gas, which has
been the foundation of the nations economy for a long time. Moreover, as it is well known,
the nations wealth is owed to this sector. In spite of the extensive expansion and perhaps
even exploitation, the sector continues to have room for new investors (Oxford Business
Group, 2014). Small businesses in this sector also have the option of initiating their business
in corporation with other existing businesses (Oxford Business Group, 2014).
The large businesses that thrive in the UAE need professionals skilled in providing
financial services; for instance, accountants, auditors, and bookkeepers (Oxford Business
Group, 2014). People with financial backgrounds can start small businesses that can make
large profits (Oxford Business Group, 2014). The same can be said about Information
Technology (IT) specialists as well, since large organizations need IT support as well (Oxford
Business Group, 2014).
Another obvious need is food and drinks, since where there is a large commercial
centre, there will be hungry people seeking variety in food (Oxford Business Group, 2014).
Small food businesses, especially those providing fast food, can thrive in this atmosphere.
With the increasing variety in available food, people are becoming increasingly health

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conscious, and this is true about the UAE as it is for all developed countries in the world
(Oxford Business Group, 2014). Healthcare professionals as well as healthcare service
facilities and providers are in great demand in the UAE, and people interested in starting
businesses in this industry have a great scope.
The UAE government provides an ideal environment for businesses and the people
that live there, and this requires that there are no compromises with security in the nation
(Oxford Business Group, 2014). Consequently, there is a huge demand for security services
and businesses providing security guards and security measures are in great demand. In fact,
the security devices businesses that provide equipments, such as alarm systems and
surveillance technology, has a large opportunity in the nation as well (Oxford Business
Group, 2014). Where there are people, there is a need for transportation, and the transport
sector is the UAE, especially Dubai, is booming with an increasing requirement for transport
services (Oxford Business Group, 2014). Small businesses have the choice to establish local
and/or inter-city taxi services or even transport services for goods.
Ecological concerns are the focus of all developed nations today and UAE is not
different. The expanding population in the nation as well as the speedy growth and activities
such as construction and industrialization are actions that can harm the environment. The
UAE government and its people are concerned about conserving the environment of their
nation. Small businesses that provide greener alternatives for conducting businesses are
highly preferred in the nation. Businesses that offer options for recycling or simply work
toward making the nation green and ecologically viable can thrive in the UAE. Dubai is
among the top tourist destinations and this means that the ecological concerns are also
associated with another popular small business sector, tourism. Small tourist operators can
make large profits by starting tourism organizations that provide guided tours. Moreover,

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hotels that provide accommodation for people, that is, as a small business, can thrive here as
well.
It must be acknowledged that Dubai is known as a major location for gold and jewelry
shopping (Oxford Business Group, 2014). People buy gold and diamonds from Dubai for
investments and simply for fashion. Small businesses, such as gold souks and even various
jewelry shops that sell and repair items can make large profits. People in UAE generally earn
well enough to provide their children with quality education, and specialty schools are
extremely popular in the nation (Oxford Business Group, 2014). Moreover, the UAE
government provides extensive funding for education and propels its people to seek quality
education (Oxford Business Group, 2014). Education specialists can make extensive money
by starting specialty schools in localities as small businesses. In addition, childcare facilities
are another sector wherein small businesses can make good profits. This is because the large
numbers of professionals that move to the UAE from across the world need such facilities
when they go to work.
Dubai is good location for starting a small trading business, since traders across the
world consider the place as an ideal location for exchange goods and services, that is, imports
and exports (Oxford Business Group, 2014). This can be attributed to the fact that nation does
not impose any stringent laws for such exchanges. Moreover, small businesses in several
sectors, such as dried fruits, lifestyle and fashion items, textiles, plastic goods, electronics,
and vehicles, use Dubai as a trade center. Another increasingly popular concept in the UAE is
business franchises, because of the fact that people across the world are living in cities like
Dubai now (Oxford Business Group, 2014). Thus, business franchises in industries, such as
food, lifestyle items, groceries, and even clothing, are becoming popular, and depending on
the kind of expat population, business franchises can thrive in the nation.

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Some other businesses that can potentially thrive in the UAE are in the entertainment
sector, that is, bars, specialty restaurants, nightclubs. Since people work all day long in cities
like Dubai, they are always looks for escapes after a day of hard work. Small businesses in
this sector can make profits easily. The same can be said for job agencies, since people are
always seeking jobs in the UAE, and this is true for unskilled and skilled labor. Naturally, the
nations laws and its reputation to ignore the human rights exploitation of unskilled laborers
has been under purview and this might be dangerous sector to venture.
Conclusion
Small businesses clearly have a large number of opportunities for growth and
expansion in the UAE. This is because the legal and taxation atmosphere is the nation enables
easy set up and expansion. This paper listed several potential small businesses that could
thrive in the country, given this environment. While these are only some examples, there are
several other options for small businesses, such as beauty services and products category, that
have not been mentioned. It can be concluded that there is a plethora of opportunities for
small businesses and for foreign investors in these businesses in the UAE, especially in
Dubai.

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7
References

Ghaemi, H. (2006). Building towers, cheating workers. New York: Human Rights Watch.
IBP International. (2013). How to invest, start and run profitable business in the United Arab
Emirates guide. California: Intl Business Publications.
Oxford Business Group. (2014). The Report: Dubai. Oxford: Oxford Business Group.

SMALL BUSINESSES IN THE UAE