Retail Business in Dubai
The retail sector is a booming sector in Dubai. The retail sector is the most attractive and best-performing sector in Dubai. The growth in the retail sector is expected to be around 5% over 5 years according to the Dubai Chamber of Commerce. The growth is attributed to increased e-commerce, increased spending of tourists, frequent mega sales, shopping festivals, etc. A large number of retail shops have opened increasing competitiveness. However, the growth in population is increasing the demand as well. The shops are selling the products at competitive prices, offering better customer service, app-based delivery, and have extended the working hours. Along with that, the support from the government and easiness in getting a tourist visa has made the retail business more attractive. Moreover, Expo 2020 will surely contribute to the growth of the retail sector in Dubai. Therefore setting up a retail business in Dubai has huge scope.
Steps to Setup a Retail Business in Dubai
- Market research: The businessman has to do proper research and should have the know-how of the locality and the business type.
- The business should prepare a sound business plan with estimated start-up costs and other expenses.
- The business has to select a suitable location looking upon the competition, population, and other factors. A retail business can be set-up either on the mainland or in the free zone.
- The business needs a local sponsor who has 51% of the company shares.
- The owner has to select the business type. Some business types require special approvals. DED has around 2200 activities to choose from.
- A company needs a trade name that is unique and according to the laws of the land.
- After that, the owner has to apply for registration of business in the DED. The retail shop requires a commercial license.
- The Ministry of Commerce demands the owners to prove financial investment in the company. A foreign investor has to produce financial resources proofs by the bank or other sources.
- The owner has to get clearance from the respective departments and also permission from the DM.
- After that, the DED issues a commercial license after clearance.
In addition documentations, paperwork, certifications, trademark registration has to be done. The owner has to appoint managers and employees. Advertising the company is an important aspect as it increases the brand value.
The retail business can reap high profits in Dubai. The competition is high. However, the increase in population and ease in doing business are attracting more businessmen to this sector.