Thinking of setting up your business in Dubai? Before you get started with VISA processes and business licenses, let’s take a look at the market competition here. Let me be completely transparent.
Competition is at an all-time high.
But that’s not to say you can’t thrive.
In fact, many UK companies have expanded to Dubai with significant success from year 1.
The secret? Knowledge is power. The more you know, the more you navigate the pitfalls and overcome the common business mistakes.
In this article, I want to draw your attention to one unique Dubai business phenomenon – industry zones and competition literally next door to you.
Where To Set Up A Business In Dubai
In Dubai, you’ll notice areas such as Motor City, Health City, Production City, etc. These areas are established to attract similar industries and brands to open up in these locations and bring together competitors to make shopping a more convenient experience. You’ll often find luxury home furnishing stores directly next to each other. This allows customers to drive to one location, park up, and browse each retailer quickly and easily.
This is completely opposite to UK business strategy and our mentality overall.
We tend to approach business setups (bricks and mortar) by identifying unique locations with high footfall but in prime positions. The goal for UK business owners is to set up as far away from potential competitors as possible.
You won’t find M&S next door to Waitrose, right? Maybe a short walk away, but never directly next to them.
Set Up Next To Your Competitor Or Gain A Unique Location?
How does each marketing strategy work? Well, if we consider the UK strategy, it makes comparing competitor offers more difficult from a consumer perspective. If you are a more expensive option, this can work in your favour.
If you’re cheaper but not in a prime location, UK customers will take the time to travel the extra mile to get a good deal. With almost everyone carrying a smartphone with them, price comparison online is also available, allowing customers to compare digitally in seconds, no matter where they are.
Dubai Industry Zones – Health City, Media City, etc
For the Dubai market, setting up in an industry-specific zone and next to your competitor means you both benefit from each other’s footfall and leads. Sharing is caring?
What would I professionally suggest for UK businesses looking to set up in Dubai? Find a high footfall area but NOT in an industry-specific area.
While you might be tempted to follow the norm here in Dubai to give yourself a competitive edge, it’s more important to consider ultimate customer convenience, and here’s what I mean.
5 Rules For New Business Set Up In Dubai (Location, Location, Location)
Rule 1: Understand the psychology of your target customer.
If you’re thinking about attracting working professionals here in Dubai, they will use public transport, taxis, or a car. Parking and public transport options are key. Mall locations are a great option as they offer mostly free parking or cheap parking and will maintain the building well.
If your target market is high-net-worth individuals, they prioritize home services, beautiful aesthetics and expect a building that is modern, in a good location and offers underground parking at the very least.
Rule 2: Distance & Dubai Traffic
Running a Google Ad campaign in Dubai will only get you so far. If you’re located far out, such as in Health City, Motor City, or close to Expo City, chances are you’re just too far away for anyone from Palm.
There is also prestige associated with certain locations, and image matters A LOT here. Suppose you have a luxury skincare clinic. Set up in Palm Jumeirah, Dubai Hills, or Emirates Hills will help you attract the right type of client.
If you’re targeting working professionals, there’s a high chance that your customer will live in JVC. This means traffic jams are a nightmare during the morning and evenings, so if you’re not close by, they’re not going to travel to you during the week.
Alternatively, targeting professionals and having a location within JVC is a big opportunity for gyms, restaurants, beauty salons, and coffee shops.
Rule 3: Do Your Homework
Rather than risk investing in the wrong location and spending a lot of money on rent, spend time fully researching the market.
One of the best ways of doing this is to book a consultation with a member of our team at Lunar.
We specialise in both business strategy for UK companies looking to expand to Dubai and on-the-ground market research and feasibility studies.
We take a comprehensive outlook on business strategy, set up, and digital marketing to give our clients the upper hand.
So, whether you’re thinking of expanding your company to this incredible part of the world or you’re already here and scouting out locations, get in touch with our team now.
