According to recent statistics, the UAE remains one of the best countries for retailers to set up shops, despite the slowdown registered by these types of businesses all over the world last year. Moreover, there is a place for doing business for both renowned as well as emerging brands from all countries. Foreign investors who want to set up a store should look towards the UAE, as it was ranked 5th among the emerging retail markets of 2017 according to the A.T. Kearney’s annual Global Retail Development Index. Our Dubai company formation agents can help you register a company here.
The most conclusive argument about the retail industry to perform this well is the report issued by the Statistics Office in the UAE according to which retail sales contributed with 73 billion USD to the country’s Gross Domestic Product in 2016.
Returning to the annual Global Retail Development Index, the UAE stands out among the other countries in the region thanks to the low risks involving the opening of a company in this state. While e-commerce also gained momentum during the past year, retailers maintaining physical locations have also continued to thrive thanks to various discounts offered to shoppers, but also by reducing their operational costs.
Not only is the UAE a safe country to create a shop in, but the Global Retail Development Index also announces a 3.4% annual growth of the economy until 2022 which is expected to have a positive effect on the retail industry.
The introduction of the value added tax at the beginning of 2018 has not remained unnoticed and while it is clear that it will affect retail companies in the UAE, the long-term prospects remain good. This is also because recently certain regulations which allow for full ownership of retail businesses in the UAE have been added to the local laws which are expected to contribute to the wellbeing of the retail industry.
If you are interested in starting a retail business in the UAE and need information on the legislation governing this industry, please contact us. You can also count on our company registration consultants in Dubai for assistance with the company formation procedure.