The UAE has become a hotspot for entrepreneurs in recent years. During a time where many regions are struggling to reinvent, survive, and thrive, multiple business sectors in the UAE are rapidly growing.
So, why does the UAE have ample opportunities for entrepreneurs? Its strategic location gives entrepreneurs easy access to a large and diverse market. It has a business-friendly environment, with free zones like SPC Free Zone that facilitate simplified regulations, lower taxes, and streamlined business setup services to help entrepreneurs get their businesses off the ground.
The supportive ecosystem in the UAE – combined with its openness to innovation and cutting-edge ideas – makes it a great place for entrepreneurs. Let’s explore which industries are thriving and expected to expand in the coming years.
Setting up businesses in these industries requires specific business licenses that SPC Free Zone can facilitate instantly, along with unlimited visas for partners, investors, and employees, and a guaranteed banking account within three working days.
Travel and Tourism
The tourism and travel industry is a major powerhouse in the UAE. The UAE has established itself as a leading tourist destination in the Middle East, attracting millions of visitors annually. Dubai alone contributes to a majority of this, attracting 17.15 million international visitors in 2022.
This number is a major leap from the past few years, with 14.36 million visitors in 2022 and approximately 12 million visitors in 2021. It’s clear that the growth is both steady and rapid.
The UAE’s luxury hotel sector brings in a large influx of tourists. Notably, Dubai is one of the most prime locations for these establishments. A modern metropolis, Dubai draws in luxury tourism. But beyond the towering skyscrapers and glamor, the UAE also has vast deserts, pristine beaches, exciting theme parks, and a rich cultural heritage to explore.
The UAE has cemented its place as a premier business travel destination too. The ongoing expansion of tourism can also be attributed to significant investments made in infrastructure, such as airports and transportation networks. As Dubai continues to play host to major international events, it’s clear that the industry is poised for continuous growth.
Entrepreneurs looking to enter this field have a host of options to pick from. Apart from establishing hotels, resorts, or vacation rentals, entrepreneurs can provide services as travel agents or tour operators. Beyond this, travel insurance can be an incredibly lucrative field. Alternatively, entrepreneurs can consider investing in actual transportation services such as airlines, railway, or cruise lines.
Construction
With numerous ongoing and upcoming initiatives aimed at boosting development progress, the construction industry in the UAE is booming. In 2024, the construction market in the UAE was valued at a substantial USD 41 billion, projected to exceed USD 50 billion by 2029. Simply put, it’s one of the most lucrative industries in the MENA region.
Construction companies work in tandem with engineers and architects to bring a vision to life. While there are several large industry players, the growing demand for construction firms creates space for entrepreneurs to thrive in this field.
Mega projects such as BR City, Dubai Creek Harbour, and Dubai Metro expansion are driving the need for competent construction firms. On the other hand, residential housing developments that cater to both local and international investors seeking to purchase real estate are in high demand as well. From iconic monuments to housing complexes and skyscrapers, construction is always ongoing in the UAE.
The construction industry in the UAE can be broken down into:
- Residential construction
- Commercial construction
- Industrial construction
- Infrastructure construction
- Energy and utilities construction
As the industry rapidly embraces technology such as Building Information Modeling (BIM) for streamlined planning, design, and project management, there is also a notable increase in demand for construction consultancy services, from conceptualization to design consultation.
Real Estate
By now, you probably have a thorough idea of how swiftly the UAE has become a global hub. As the population in the country continues to grow and attract people from around the world, the real estate market is predicted to grow exponentially.
From commercial and residential real estate to tourist accommodation, an entrepreneur in this field has many options to choose from. After all, in 2023, the real estate market saw a remarkable surge – a whopping 56% increase from 2022, reaching AED 411.74 million.
The strong sales figures indicate a high level of investor confidence in the UAE’s real estate market, particularly in Dubai. This bodes well for entrepreneurs with a strong vision who are looking for suitable investors to propel their business journey. It’s certainly the right moment to enter the UAE’s thriving real estate scene.
But it goes beyond buying and selling. The success of the market is reflected in the rental market as well. Average rental growth reached 38% in just the first half of 2023. The numbers show us that there is a growing demand in the rental sector, particularly reflecting the influx of business travelers, long-term workers, and tourists.
Healthcare
With scientific developments, telemedicine, AI-driven diagnostics, and robotic surgery, healthcare is being revamped around the world. The UAE is leading this change globally with scientific breakthroughs.
The UAE healthcare market is projected to reach $10.7 billion by 2025. Making healthcare affordable and accessible through technological developments and investment in infrastructure is a top priority for the UAE.
The country has a large number of both public and private facilities, medical centers, and clinics. The region is constantly looking to attract higher numbers of skilled professionals for the workforce, including care workers, nurses, doctors, specialists, and technicians. Entrepreneurs looking to enter this industry will benefit from gaining a thorough understanding of its landscape.
Remember that apart from large hospitals or clinics, care facilities for the elderly and specialist clinics are potential business avenues as well. For entrepreneurs who wish to make a real difference while contributing to a futuristic field, healthcare might be the best industry to step into.
Cleaning and Maintenance
Don’t take the valuable work done by this sector for granted – it’s carried out by skilled professionals and is one of the most profitable fields for entrepreneurs in the UAE.
As urbanization continues to rise in the UAE, it’s expected that there will come a growing need for efficient cleaning services. People have begun to lead increasingly busy lives, leading to a greater appreciation for services that save time and ensure a clean living and working environment.
Together with this is the effect that the COVID-19 pandemic has had on the general population. A greater awareness of how cleanliness prevents disease spread has made it a priority for most households and corporate environments. The industry is expected to grow significantly in the coming years, with a projected Compound Annual Growth Rate of roughly 5%, driven by these diverse factors.
Entrepreneurs who want to enter the cleaning sector should note that the market is divided into distinct segments, including residential cleaning, commercial cleaning, disinfection/sanitation services, as well as specialized offerings like window, carpet, and upholstery cleaning.
Simultaneously, the demand for effective disinfecting and exterminating services is quite high. For novice entrepreneurs entering the industry, we suggest focusing on a set of particular services to specialize in and develop expertise.
These industries all hold strong potential for entrepreneurs looking to take advantage of the UAE’s business potential.
