5 Factors to Consider When Choosing a Business Location in the UAE

When setting up a business in the UAE, one of the most crucial areas of concern is the choice of location. Where your business is located determines important factors like ease of access for customers, costs, regulations, and much more. There are a few factors to keep in mind when deciding where you’d like to start your venture. In this article, we explain some factors to consider that may help you choose an ideal location for your business in the UAE.

1. Economic Activity

The economic activity your business engages in ultimately determines what location is ideal for your venture. When you look into your business’ line of activities, it becomes easier to see why you are engaged in that particular line of business and your target audience – whom your business is best suited for. Understanding who your customer is can accurately help you select a location that is closest to the selected demographic. Factors like age, gender, ethnicity, education, and income level are all factors to be considered when developing a profile for who your customers will be.

2. Logistics and infrastructural requirements

A proper location ensures that there is ease of access not only for customers but also for suppliers and employees. If your company engages in the business of imports and exports, it’s better to be closer to ports that have access to logistical networks that can ultimately help your business work well. Additionally, your business must be able to support physical and technological infrastructural requirements in order to be equipped to effectively support your business operations smoothly.

3. Ease of access

Your business should be accessible to two main parties; to customers and suppliers. In an ideal scenario, it must be easily accessible to all parties involved in the process of purchase and sale. Moreover, an easily accessible business is more likely to have customers visit and purchase items due to the aspect of convenience that comes with a place that’s easy to access.

4. Level of Competition

The location your business may be set up in is determined by the level of competition within the area. An area with high levels of competition means that there are more customers likely to drop by and discover your store, but the large number of competitors selling the same or similar products may hinder your business from growing a substantial customer base. On the other hand, if your business is located in an area where the competition is substantially reduced, you can gain a loyal customer base.

However, the lack of competition may also signify the likelihood that there aren’t enough customers to effectively create a strong customer base. It’s important to select a location that maintains a balance between the level of competition between companies in the same industry and the number of customers/buyers within the area.

5. Current and future opportunities

The location of your firm must be able to provide your business with substantial perks. If you choose to set up your business on the mainland, then the location must be able to access the highest number of customers possible. In terms of free zone setups, selecting a free zone that offers the best services for your business can help ease financial as well as other resource-based burdens, due to the perks they provide. SPC Free Zone provides businesses with dual licensing that enables businesses to set up their venture on the mainland and within the free zone as well. This allows for businesses to make the most of both locations, creating access points to customers, suppliers, and other logistical parties.

Additionally, it’s important to look into the future potential of a location before you make your final choice. It’s best to select a location that allows for further expansion and will continue to have significant access to markets years down the line.

To understand more about which location is best suited for your business and how you can set up your business there, contact our expert consultants at 800 SPCFZ (77239) today.