Trade in the Arab Emirates market: the availability and profitability of this industry is ensured by high purchasing power and financial stability, well-functioning logistics and the absence of major taxes (except for 5% VAT on a number of internal operations). At the end of 2020, the country was ranked 11th in the world in terms of exports and 14th in terms of imports of goods. Among the Middle East markets, it is the undisputed leader in these indicators. The Emirates is a gateway to the Arab world and African countries, as well as a historical trade intermediary between Europe and Asia.
Main areas of trade in the United Arab Emirates
High purchasing power and a growing consumer market drive the constant need of the UAE population for high quality goods
Foodstuffs
Various food products, drinks, including also agricultural products
Precious metals and jewelry
Ores, ingots and alloys of precious metals, precious stones and various jewelry
Light industry
Equipment for the food, processing and textile industries
Construction materials
All types of materials and components for construction and installation work
Landscaping materials
Tools, appliances, various products for decorating local areas: fountains, gazebos, plants for landscaping
Transport and smart devices
Vehicles and spare parts, measuring and electronic equipment, "smart" devices and their components
Food
0.9%
The volume of agriculture in the GDP
Agriculture is far from being in first place in the structure of the UAE's economy. Due to the peculiarities of the climate, it makes up less than 1% of GDP.
85%
Food products are imported from abroad
According to the forecasts of the international consulting company KPMG, by the end of the decade the food market will grow by 4% per year.
Prospects for foreign investors
For foreign businessmen, this segment opens up a lot of opportunities, especially in those industries that, due to climatic conditions, cannot be developed by local manufacturers.
Manufacturers of flour and vegetable oils, vegetables and nuts, meat, fish and dairy products really have something to offer the food market of the United Arab Emirates - the demand for these product groups is traditionally high.
According to statistics, the profitability of wholesale trade operations for these groups of goods is 7% higher than the industry average. In the retail segment, this difference exceeds 12%.
We remind suppliers of animal products that only halal products can be imported and distributed in the Emirates and the GCC countries. To obtain Halal certification, both the slaughterhouse and the product must be approved. Certification is carried out by ESMA and accredited companies.
The amount of gold purchased every year by the average UAE resident
1 g
What citizens of other countries buy every year on average, by comparison
Prospects for foreign investors
The high level of income of the population and rich socio-cultural traditions create a special status for this group of products in the UAE market. The government constantly supports investment activity in this area, exempting gold (unprocessed and in bullion) and precious stones imported into the UAE for investment purposes, from customs duties and VAT. As a result — this market offers investors some of the most attractive conditions in the world!
Government support for the sector allows local jewelers to buy cheap raw materials.
This stimulates the development of the jewelry industry and opens up vast opportunities for creating a new jewelry production facility or relocating an existing one.
Jewelry made of gold and precious stones with a certificate of origin from the UAE is highly rated not only in the domestic market but also in other countries and so has excellent export potential. In addition, jewelry is imported into the UAE from all over the world, which opens up opportunities for profitable re-export.
in the country's economy after the oil and gas sector
3rd place
in the world ranking of textile exporters
UAE light industry facts
Light industry, and textile production in particular, is one of the main drivers of economic growth in the Emirates. This industry ranks second in the country's economy after the oil and gas sector. Its rapid development allowed the UAE to rise to third in the world ranking of textile exporters. The conditions prevailing in this market segment allow wholesale exporters to reach a level of profitability that exceeds industry averages by 10%.
The retail trade sector in the United Arab Emirates gives foreign manufacturers and suppliers of clothing, footwear, and consumer goods easy access to the market and even higher profitability - 17% more than industry averages. The choice of this direction is supported by the high purchasing power of the population, a huge number of tourists who consider shopping to be an integral part of recreation, and a mass of business placement options - from a retail warehouse in a specialized textile quarter to a boutique in a prestigious shopping center.
Construction and finishing materials, furniture
$50 bln
The volume of investment in United Arab Emirates real estate over the past two years
1st place
In terms of the ease of obtaining a building permit
The UAE is an ideal platform for operating a trade business
Over the past two years, real estate investments in the UAE have exceeded $ 50 billion. The construction industry struggles to supply an ever-growing demand. For this, it requires a huge amount of construction and finishing materials from composite panels and pipes to windows, doors, and fittings. If you work in one of these segments, grab hold of this opportunity.
Another promising area - fitting out and decorating business centers - is due to the fact that in recent years the Emirates has become a dynamically developing center of world business, attracting entrepreneurs from all over the world. The massive construction of business centers, coupled with the high demand for office space, creates a capacious niche for manufacturers and suppliers of office furniture and interior solutions.
The demand for home furniture is no less high, both in the upper and in the lower price segments. The indigenous population of the Emirates, investors and top managers of foreign companies are responsible for the upper segment. Their high incomes ensure a stable demand for premium furniture. On the other hand, the level of labor migration in the UAE is quite high. People from other countries come here to work, then leave, and others come to replace them. What are the newcomers doing? Throwing away the old furnishings and purchasing new ones. Due to this, the demand for budget class furniture is also extremely high.
Greening has become a real fixation for the United Arab Emirates. This explains the steady demand in all segments of the landscape materials market. Customers can be found both in the private consumer market and among government agencies through participation in tenders from the Municipality
At national level, the DUBAI2040 program for landscaping and landscaping is in place. This forms the framework for financing procurement of landscaping works and the necessary products. 60% of the Emirate's territory will be green recreational and park areas by 2040.
An additional demand for landscape materials in the wholesale sector is created by developers and builders - they are obliged to landscape and garden new city quarters, saturating them with parks and public gardens.
Private houses and villas surrounding business districts seem to compete with each other in the quantity and quality of greenery and sophistication of landscape design. Wealth allows homeowners to purchase large quantities of not only publicly available but also exclusive landscaping materials, hence the high return on sales in the retail segment.
It is not surprising that everything related to engineering, design and landscaping - trees, shrubs
and flowers, planting materials, irrigation systems, improvement elements and beautification features - here automatically refers to high-demand goods. If you work in this segment, the UAE is one of the first markets you should pay attention to.
The introduction of high-tech and innovative solutions in all spheres, from ultra-modern infrastructure and transport to smart industrial equipment, is the main principle of the country’s National Innovation Strategy
Due to active assistance and support from the government through the framework of the National Innovative Strategy 2030, trading of SMART equipment, transport and devices in the Emirates receives a special incentive for rapid growth. The introduction of electronic solutions in various areas of household and business life opens up a lot of new business opportunities.
In addition, the drive towards diversifying the economy and abandoning oil dependence has led to the emergence of new local industries, laboratories and research centers that are in dire need of high-quality equipment.
High standards of living is a guarantee that your business for the sale of equipment or devices, as well as vehicles, will always be in high demand.
SORP Group is your reliable partner in the UAE!
SORP Group hopes that this brief overview will be useful to entrepreneurs who regard investments in the UAE trade sector as a possible direction for business development. Our experts will help to simplify and speed up the procedures associated with the launch and conduct of trading activities in the United Arab Emirates. We are ready to assist in the formation of market entry strategies, licensing activities, obtaining permits for the import of goods and certificates for products, passing customs procedures, forming logistics solutions, as well as providing full support at all stages of business.
SORP Group's many years of experience in the UAE market is the key to the success of your trading business
Organizing the import of goods
Registration of the importer's code, obtaining the import permit for goods, supporting the process of customs clearance and organizing warehouse storage
Organizing the export of goods
Certification of invoices and consignment notes, selection of appropriate shipping companies, completing and filing customs declarations
Obtaining a trade license
Ensuring prompt incorporation and licensing, obtaining permits through well-established interaction with government departments and familiarity with legal requirements
Obtaining import permits
Passing examination in the Agency for Standardization and Metrology of the UAE (ESMA), support in laboratory testing, registration of goods
Logistics package solutions
Individual consulting on the topic of logistics and search for carriers, obtaining certificates for imported goods, customs clearance of goods
International trade business optimization
Analyzing the competition, optimizing business processes, developing profitable supply schemes, help in communication with partners and UAE government agencies
The global trend towards increased control over business leaves fewer legal methods to minimize the tax burden, optimize cash flows and allocate funds to accounts. To minimize the risks of having your international activity considered suspicious, illegitimate or suspended, we recommend that you comply with all legal requirements for confirming Economic Presence (ESR) in the UAE.
SORP Group solutions for efficient trading under the UAE flag
Local company for complex tasks
Wide possibilities for conducting trade transactions and ease of opening accounts at UAE banks
Free Trade Zone company for re-export
Consolidated warehouses,
zero customs duties for the import and re-export of goods.
Opening bank accounts
Close cooperation with UAE banks, knowing their procedures and assistance in passing KYC.
International tax planning
Tailor-made solutions to improve the efficiency of tax optimization mechanisms and the development of tax schemes for international business
Tax residency registration
To protect against automatic exchange of tax information, we will obtain a Domicile certificate confirming your status as a tax resident of the UAE
Economic Substance confirmation
Proof that you are conducting operating activities at the company’s place of incorporation, and tax affiliation of operations to the UAE
The United Arab Emirates is the largest hub connecting the world's logistics and trade routes, with many opportunities for the development of international trade. However, to successfully organize a business in the Emirates, you will need the knowledge of local legislation, business traditions, and market specifics. SORP Group specialists will help you organize logistics and successfully trade in the UAE.