UAE’s Food and Beverage e-Commerce Presents Investment Opportunities
A recent webinar organized by Dubai Chamber of Commerce, MNCs and on-demand delivery app InstaShop identified new business opportunities in the UAE’s food e-commerce sector that companies in emerging markets can capitalise on. The focus of the webinar was on Food & Beverage (F&B) e-commerce awareness. More than 84 participants from 33 countries, representing food manufacturers, export promotion agencies and trade offices participated in the webinar. Sessions during the event examined the latest UAE food e-commerce dynamics, trends and competitive advantages that Dubai offers as a world-class food e-commerce and innovation hub.
The virtual event provided valuable insights on the UAE’s food e-commerce ecosystem and evolving business landscape. Insights on the importance of using e-commerce platforms to expand business beyond borders and tap into growing demand among consumers in the UAE and surrounding markets who are increasingly turning to digital channels to access products and services were discussed in the event.
UAE – Online F&B Segment Performance
Despite the COVID-19 pandemic affecting several industries in UAE, the online sales within the F&B sector surged in 2020 reaching a value of AED 1.5 billion (USD 412 million), recording a year-on-year growth rate of 255%. While the e-commerce purchase value in the country has nearly doubled in recent years, supported by the Covid-led digital shift has changed consumer behaviours. The value of online food and beverage sales in the country is expected to reach AED 2.2 billion (USD 619 million) by 2025, with an annual growth of 8.5% over the 2020-2025 period.
Dubai’s digital economy is growing at a significant phase as various sectors adopt advanced technologies and cutting-edge solutions, while more e-commerce players enter the market. Addressing the rapid growth, the benefits of leveraging the e-commerce platform, as well as potential marketing partnership opportunities were discussed in the webinar session.
Dubai Chamber & Google Partnership
Google and Dubai Chamber have partnered to launch ‘Business Online Presence’, a comprehensive digital solution designed to help businesses in the UAE manage their online presence, maximise visibility and attract new customers. The new solution was launched during the webinar event.
Members of the Dubai Chamber can now access the ‘Business Online Presence’ dashboard to set and verify their business profiles across single or multiple locations on Google Search and Maps. Those online profiles feature essential business details such as opening hours, contact details, address and photos. Businesses can also post timely offers and promotional packages during special seasons. The tool can also generate a customized total score for each business’ online readiness and reputation management. Members of the Dubai Chamber can use the dashboard to standardize brand experience and engage with customers through online reviews, access timely insights like their store visits and identify operational challenges faster. A training program to learn the digital skills needed is also provided by Dubai Chamber under the name of ‘Maharat Min Google’.
Investment Opportunities in UAE Online Food and Beverage Segment
Online food delivery has exponentially grown over the past decade, and more so in the last two years, because of the pandemic. Majority of the residents in UAE have started to prefer ordering food online, which has led to a significant rise in the food delivery business and e-Commerce sector. Reports show that revenue in the online food delivery segment is projected to reach AED 11 billion (USD 3 billion) in 2021. The trends are expected to continue, with UAE residents actively switching to online food orders, providing opportunities for investment in the sector.
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Ten New Schools to be established in Dubai – KHDA
Dubai’s Knowledge and Human Development Authority (KHDA) announced that ten new schools are set to open in Dubai for the 2021-22 academic year. According to the data published by KHDA, these ten schools will provide 14,671 additional seats for new students to be enrolled. The new schools will be committed to deliver high-quality education and efforts to further consolidate Dubai’s growth as a global education destination. This will also provide parents with more educational choices and will build the on strong demand from parents for innovative education offerings
The new schools which will be operational from 2021 in Dubai are located in Tilal Al Ghaf, Al Warqa, Al Karama, Al Barsha, City Walk, Mirdif, Nad Al Sheba, Al Khawaneej and Rashidiya. The schools will offer a choice of Australian, UK, US and IB (International Baccalaureate) curricula. A total of 25 new private schools have opened in Dubai over the last three years, between September 2020 and February 2021. Dubai witnessed a 2.6% overall growth in school enrolment, according to the latest “landscape report” released in February 2021 by KHDA.
New Affordable Private Schools
Apart from the 10 new schools, as a part of the educational strategy, the Dubai government has planned to open two new affordable schools to be run by a private sector operator under a new model for the city. The schools will be located in Mirdif and Al Barsha, and will be operational in August 2021. Both schools will follow the American curriculum but will focus on Arabic literacy, science and technology, the UAE’s culture and Islamic studies.
The schools will be operated by Taaleem, one of the country’s top education providers, and will be regulated by the Knowledge and Human Development Authority (KHDA), Dubai’s private education regulator. The school will be open for students of all abilities and nationalities. Currently, more than 400 families have expressed interest in seeking admission in these schools, while it can accommodate 800 children. Initially the school will be open for preschool to Grade 4. The annual fees for the students will vary from AED 29,900 (USD 8,140) for kindergarten students to AED 36,155 (USD 9,832) for fourth-graders. These two new schools are expected to raise the educational standards in the region.
Investment Opportunities in Dubai’s Education Sector
Dubai has strongly believed that developing human capital will be a key to shape a bright future for the country and its citizens. As part of the vision of VP. and PM. of the UAE and Ruler of Dubai, H.H. Sheikh Mohammed, Dubai is constantly focused on improving the quality of education to create a future for the country that is driven by scientific curiosity, knowledge, innovation, collaboration and national values. With the increasing demand for quality education, Dubai Government strives to create an ideal platform for a modern globally recognized education to thrive in the Emirate.
How to Open a Private School in Dubai – In order to establish a school in Dubai, KHDA requires schools to conduct market research to determine the need and demand for the specific type of school in the proposed area. Please feel free to contact us if you wish to open a school in Dubai, Abu Dhabi or UAE.
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Digital Solutions Fueling the Growth of Businesses in UAE
A report conducted by ‘Visa’ in UAE suggested that a significant number of the companies operating in UAE are switching to digital solutions to recover in 2021. Small and Medium Sized Enterprises (SMEs) in UAE are optimistic about business recovery, with 3 out of 4 stating they feel positive that businesses will rebound from the pandemic-induced slowdown this year. Similarly, approximately 82% of the merchants in UAE said that their investments in digital payments had paid off and will play a major role in their business recovery.
A similar study conducted by ‘Godaddy’ suggested that UAE entrepreneurs have increased their digital initiatives to help attract and retain more customers. Approximately 36% of UAE entrepreneurs have increased their digital marketing activities to attract more customers, while 33% started selling their products and services online. Approximately 68% were sure that their business could survive a second wave of COVID-19 as big as the first one.
Digitalization of UAE Retail Market – 2021
The retail customers in UAE are actively switching to digital and contactless transactions. The increase in use of contactless payments was around 93% during the pandemic, while take away and home delivery were 87% and 78% respectively. UAE expects these spending trends to continue to grow in the post-pandemic era. While 60% of the companies which were surveyed mentioned that contactless payments were the preferred payment option among their customers, at the start of the pandemic only 18% of these companies mentioned that contactless payments were the preferred by the customers.
More than 38% of the retailers in the UAE that were surveyed said they have established an online presence in response to COVID-19. Nearly 86% are confident that online shopping will remain a preference even after the crisis. UAE retailers are leading the way in digitizing their business, as they feel that it is the key for their business recovery in 2021.
Investment Opportunities in IT Industry – UAE
With an increasing number of SMEs digitalizing their business, the demand for IT services is also on the raise in UAE. It is estimated that the digital wallet market value in UAE will increase at a rate of 24% reaching AED 8.5 billion (USD 2.3 billion) by the end of 2022. UAE provides an optimistic platform for both the existing companies and investors who are looking to expand their business in the Emirates. The upcoming EXPO 2020 will also favour the investors and businesses that are operating in UAE and will continue to benefit from them.
Research Konnection is one of the top market research companies in Dubai – UAE specializing in Market Research, Market Entry & Feasibility Studies. Feel free to reach out to us on firstname.lastname@example.org…March 28, 2021
Dubai Masterplan 2040 Focuses on Improving the Quality of Life in Dubai
The latest Dubai 2040 Urban Masterplan aligns with UAE’s vision for the next 50 years. The Plan is focused on enhancing people’s happiness and quality of life. The people-centric Plan focuses on reinforcing Dubai’s competitiveness as a global destination by providing a wide diversity of lifestyle and investment opportunities for residents and visitors over the next 20 years.
Dubai 2040 Urban Masterplan, has created a development model that offers the best possible quality of life and creates the conditions for sustainable prosperity which draws its inspiration from global best practices and adapts them to local needs and requirements. The primary goal of the masterplan is to create a truly inclusive environment that not only meets the diverse needs of people residing in UAE, but also inspire them to tap into their creative and innovative capacities and realise their true potential.
Dubai Masterplan 2040 – Measures to Improve Quality of Life
The plan emphasises on upgrading and improving the efficiency of utilizing the resources in Dubai, developing vibrant, healthy and inclusive communities, and doubling green and leisure areas and public parks to provide a healthy environment for residents and visitors. Nature reserves and rural natural areas will constitute 60% of Dubai’s total area. Several green corridors will be established to link the service areas, residential areas and workplaces, facilitate pedestrians’ movement, bicycles, and sustainable mobility means across the city, in coordination with developers and government departments.
The land area used for hotels and tourist activities will increase by 134%, while that used for commercial activities will increase to 168 square kilometres. Dubai will continue to be a global hub for innovative start-ups, international corporations, and strategic investments. The Master Plan will also increase the land area allocated to education and health facilities by 25%. The length of public beaches will increase by 400% in 2040 to increase residents and visitors’ quality of life.
Dubai Masterplan 2040 – Impact on Dubai Economy
The new Plan will raise the efficiency of development and promote the infrastructure’s optimal utilisation by developing vacant urban spaces. It also seeks to provide sustainable and flexible means of mobility and foster greater economic activity and attract foreign investments to new sectors. The plan will help raise the Dubai’s growing role as a pivotal business and trade hub, enhancing its attractiveness as an investment destination by leveraging its superior logistics infrastructure and contribute to Dubai’s efforts to mitigate the repercussions of the Covid-19 pandemic, accelerate the pace of its economic recovery and prepare the ground for a bright new post-pandemic world.
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Importance of Conducting Market Research in Abu Dhabi
Abu Dhabi Economic Outlook – 2021
Abu Dhabi is considered the wealthiest emirate in UAE, in terms of per capita income and Gross Domestic Product (GDP). The estimated GDP for the year 2020 was approximately AED 1.47 trillion (USD 401 billion) which contracted by 7.5% compared to 2019, as result of lower oil production and COVID19 outbreak. The GDP Per Capita for the same period accounted for AED 160,000 (USD 43,005). The economy is expected to grow at a rate of 2.2% between 2021-2023.
Abu Dhabi injected approximately AED 50 billion (USD 14 billion) in 2021 to support small local businesses, research and development, tourism and entertainment industries to increase the GDP contribution of the non-oil & gas sector. The government aims to boost the private sector’s contribution to Abu Dhabi’s GDP from 32% in 2019 to 37% in 2021.
Importance of Market Research in Abu Dhabi
The ideal platform provided by the Emirate has made the environment highly competitive, where businesses compete on quality, price and most importantly the market information. In order to succeed in Abu Dhabi, better understanding of consumers, market and competition is required for companies (new and existing) to make key business decisions.
Advantages of Conducting Market Research – Abu Dhabi
Developing Effective Business Strategies
With the help of a comprehensive market research exercise (i.e. surveys & interviews, business plan and feasibility study), companies can identify potential opportunities, evaluate market demand and devise an effective business strategy.
Understanding Market & Competition
Market research helps companies in analyzing the latest market trends, competition and consumer behavior in Abu Dhabi, Dubai, United Arab Emirates (UAE) and the Gulf region.
Understanding Consumer Behaviour
Market research helps companies in understanding consumer behavior and trends better. With the help of market research, businesses can better understand consumer needs and wants and accordingly position themselves in the market. Most importantly, an effective market research allow businesses to understand the following:
- Target Audience Profiling – Identify customers
- Market Segmentation – Identify niche / segment in the market
- Market Positioning – Position business considering target audience / market segment
- Marketing Mix – Plan effective product / service offering
- Pricing Strategy – Understand key price points
Evaluating Return on Investment (ROI)
Conducting Market research in Abu Dhabi helps companies in better understanding return on their investments. By evaluating the market demand of products and services and through competitor scanning, market research allows companies to ascertain the business potential. Through in-depth market research, companies (existing and new) can not only reduce the risks associated with the investments but also benefit from increased revenues and profitability.
Need For Conducting Market Research – Abu Dhabi
COVID-19 has impacted almost all the sectors in Abu Dhabi and has made the market highly volatile and uncertain. The unpredictable conditions have further increased the need for conducting market research to be highly critical for the long-term success of any business. Organisations that fail to conduct market research tend to drown. Though some organizations conduct internal research, they tend to lose sight of the consumer market research that is required for the growth of their business.
By imparting right knowledge and suggesting practical solutions, market research companies can enable business not just to accelerate their growth but also mitigate potential business risks. Therefore, it becomes essential for businesses (new and existing) to conduct in-depth market research and use information / insights to make key business decisions.
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Gulfood 2021 – Focus on innovating F&B industry in UAE
Gulfood 2021, the world’s largest Food and Beverage (F&B) event kickstarted in Dubai a few days back. The 25th edition of Gulfood 2021 attracted over 2,500 companies across 85 countries, including some of the major brands in the F&B industry. The primary motive of the event was to present the main market trends in the F&B industry and to highlight new innovations, consumer behaviour patterns, and revive communication links between thousands of key players in the industry.
The Gulfood 2021 united some of the world’s top chefs, food scientists, industry innovators and even government officials to discuss the future of food. It will provide key focus points for the government in the future of F&B industry. Some of the major topics in the discussion are healthier food options; sustainability; marketing; food’s relationship to tourism and retail; and the emergence of new technologies set to boost the industry.
Food & Beverage Industry Market Potential – Dubai & UAE
With Dubai being one of the first city to control and open up during the COVID19 pandemic and its efforts in cementing its position as a strategic re-export hub in the Middle East and Africa (MEA) region, the F&B sector is expected to witness a further growth in the years to come. In addition, the overall expenditure on F&B products in the UAE is estimated to increase by 7% on an annual basis from AED 136 billion (USD 37 billion) in 2020 to AED 150 billion (USD 41 billion) by the end of 2025.
Major Trends – Food & Beverage Operations in UAE
As the UAE and the region recovers from the pandemic, it has significantly changed the dynamics of UAE’s F&B sector, particularly of Dubai. One of the major trends witnessed since the pandemic is the increase in food delivery services such as Talabat, Zomato and Careem in UAE. They gained immense popularity during the pandemic where deliveries grew as a result of health and safety precautions. The food delivery service providers are also innovating their business model, to better serve the F&B operators. Careem, changed its commission-based model to monthly subscriptions, which has seen an increasing reception for the same.
The F&B operators are also increasingly moving to shared cloud kitchens as compared to the traditional on-site ones, and are now looking towards managed kitchens. Facilities in which both cooking, and delivery are fully outsourced will allow businesses to focus more on brand, concept, and consumer demands while eliminating the need to spend significant sums on allocation decisions.
Food & Beverage Business Investment Opportunities in Dubai & UAE
Despite a global economic slowdown because of the pandemic, the UAE continues to be one of the fastest-growing F&B sectors in the world. As more people in the region get to learn about the variety of food and beverage through an event like Gulfood, the show is bound to continue attracting thousands of different F&B enthusiasts around the globe every year, solidifying Dubai and the UAE as a major F&B destination across the globe.
Research Konnection assists local and international companies to set up or expand businesses in Dubai, Abu Dhabi and UAE. It is one of the best rated market research companies in Dubai specializing in Market Research, Market Entry & Feasibility Studies. Feel free to reach out to us on email@example.com…February 25, 2021
UAE Ranked as the Most Innovative Country in the Gulf Region for the Year 2020
The Global Innovation Index (GII) has ranked UAE first in the Arab region and 34th globally based on their innovation capabilities for the year 2020. Thanks to the UAE government’s various initiatives to constantly strengthen its sustainable development via innovation. Furthermore, the month of February in 2021, is foreseen as a national occasion for consolidating the UAE’s position as a global hub of innovation and a catalyst for public and private sectors and businesses to adopt innovative practices.
UAE – National Innovation Strategy
The National Innovation Strategy launched by HH. Sheikh Mohammed bin Rashid Al Maktoum in 2014 had a clear policy on science, technology and innovation aiming to improve the global ranking of UAE. The strategy included 30 national initiatives implemented over three years, including adopting new legislation, supporting innovation incubators, building specialist national capacities, offering a series of incentives to the private sector, establishing global research partnerships, and modernising government work to be more innovative in seven key sectors, most notably Renewable Energy, Transport, Health, Education, Technology, Water and Space. Currently, UAE has implemented over 100 national initiatives worth AED 300 billion (USD 81.5 billion) in value.
The country has also proposed a series of new national legislative, investment, technological, educational and financial policies aimed at diversifying the national economy. One of the major innovation policies is the investment in the Emirati citizens, to advance their knowledge in science and technology, related to sectors including Space Research, Aviation Industries, Global Pharmaceuticals, Solar Energy Research, Peaceful Nuclear Power Research and Artificial Intelligence (AI) Programs.
In recent years, the UAE has accomplished a series of significant achievements in the field of innovation across major sectors, primarily in the development of educational systems such as, boosting computer use and smart devices in schools, inaugurating new electronic higher education establishments around the country, and establishing several technological institutes and research establishments aimed at promoting innovation.
Impact of Innovation in UAE Economy
The innovation in UAE played a vital role in the Covid-19 crisis and helped address emerging challenges and turn them into opportunities, ensuring business continuity in all vital sectors, upon the highest standards of health and public safety. The country has utilised scientific innovation to consolidate its efforts to counter the pandemic. The UAE was listed in the top 10 countries in the world to combat Covid-19 and also considered as the fastest country in the world to recover from it. The constantly improving innovative landscape in UAE continues to attract global investors to start or expand their business in the country.
Research Konnection specializes in Consumer Research & Market Feasibility Studies. It is one of the leading Market Research Companies in Dubai. Feel free to reach out to us on firstname.lastname@example.org for research enquiries.
…February 9, 2021
UAE Ranked 13th in Ease of Launching Online Business
A study conducted by a leading company that reviews and rates financial software ranked UAE 13th among 99 countries for Ease of Starting Business Online. Major criteria considered were mobile internet speed, internet coverage & penetration, wealth of the country, ease of starting a business and corporate taxes. The overall score obtained by UAE was 68.4 out of 100, just below the UK and ahead of Belgium. UAE was ranked the best in the Gulf region with Saudi Arabia (53.67) and Kuwait (51.39) following the list.
UAE Based Startups – 2020
The startup data platform MAGNiTT confirmed that the estimated startups in the MENA (Middle East & North Africa) region was around AED 3.75 billion (USD 1 billion). This was an increase by 13% when compared to the previous year. UAE, Saudi Arabia and Egypt which are considered to be the innovation hotspots in MENA, accounted for more than 68% of the total deal disclosed in the year 2020. UAE was leading the region with 56% of all capital deployed, estimated to be around AED 2 billion (USD 579 million). Approximately 26% of the deals and 129 transactions took place in UAE.
UAE e-Commerce Industry
The Gulf e-Commerce market reached a value of AED 88 billion (USD 24 billion) in the year 2020, which was an increase by AED 7.3 billion (USD 2 billion) when compared to the year 2019. The average annual spend in UAE rose by 30%, with the per capita spend estimated to be around AED 2,200 (USD 600) to AED 4,775 (USD 1,300) on an annual basis.
Similarly, the e-Commerce sector was leading all the other sectors in terms of investments, with total investment estimated to be AED 595 million (USD 162 million). This was followed by F&B (Food & Beverage) sector AED 450 million (USD 122 million) and Healthcare sector AED 264 million (USD 72 million). Moreover, the COVID-19 pandemic rapidly accelerated the adoption of technology across emerging markets, creating larger markets and more opportunities for investments in the sector.
Likewise, the governments, investors and private companies were all actively investing in the technology to adapt to the existing trends and improve their services. The trends are expected to continue with new technologies and innovations actively being adopted by both government and private companies across UAE. Contact a Market Research Company in UAE if you would like to know more about the emerging trends in the e-Commerce sector.
Research Konnection assists local and international companies to set up or expand businesses in Dubai, Abu Dhabi and UAE. It is one of the best-rated market research companies in Dubai specializing in Market Research, Market Entry & Feasibility Studies. Feel free to reach out to us on email@example.com…January 17, 2021
Restoring Ties with Qatar will positively Impact Gulf Economy
Saudi Arabia, UAE. Bahrain and Egypt will open their borders to Qatar as a first step toward ending a three and half year long diplomatic crisis. The opening of borders among the Gulf countries is expected to have a positive impact on the regional economy. Some of the major industries that are going to benefit from the decision includes Aviation, Consumer Goods, Construction and Logistics.
Historically, Qatar had a strong trade relationship with UAE and Saudi Arabia. It was estimated that the total trade between UAE & Qatar was around AED 13 billion (USD 3.5 billion), while the total trade between Saudi Arabia & Qatar was around AED 6 billion (USD 1.7 billion). With the trade being resumed with Qatar, UAE & Saudi Arabia will have a significant boost in their current financial standing.
Earlier this week, the Gulf countries along with Egypt were able to find resolution for all areas of conflict and agreed on restoring the diplomatic ties. The decision is likely to facilitate trade, investment and tourism apart from accelerating growth in the region in the times when it is adversely impacted by the COVID-19 Pandemic.
Research Konnection is the best rated Market Research Company in Dubai assisting clients in business setups and expansion in Dubai, Abu Dhabi and UAE. At Research Konnection, we specialize in Market Feasibility Studies, Business Plan Development and Business Modeling. Feel free to reach out to us on firstname.lastname@example.org…January 7, 2021
UAE Focuses on Achieving Zero Oil in GDP in the Next 50 Years
With COVID-19 pandemic bringing unprecedented challenges to people and the economy, the UAE government aims to diversify its economy by having zero oil dependency on GDP and refining policies in a bid to grow non-oil based sectors and facilitate investments in them.
Achieving Zero Oil Dependency in the Next 50 Years – UAE
UAE is aiming to become the first country in the world to achieve zero contribution of oil on its eGDP over the course of next 50 years. The country aims to enhance the investment opportunities in industries such as Information Technology (IT), Artificial Intelligence (AI), Blockchain and Robotics. In addition, UAE is also focusing on strengthening its position as a regional leader in finance, logistics, infrastructure for energy and other services which would help achieve the zero oil contribution to GDP.
Impact of FDI on Economic Diversification
Foreign Direct Investment (FDI) plays a critical role in the economic growth of UAE with the country leading the region in 2019. One of the major reasons for the increase in investments was the FDI law that was enacted in 2018, which opened up the UAE market to investors in certain sectors and relaxation of foreign ownership restrictions for 122 business activities. These initiatives cumulatively increased the FDI 52% reaching AED 50 billion (USD 14 billion) in 2019 compared to 2018.
Furthermore, the digitalisation strategies and promising business relations implemented by UAE has placed it 16th on World Bank’s Ease of Doing Business list. UAE will continue to refine its policies that will maximise competitiveness, increase collaboration and provide opportunities for FDI in a bid to achieve zero oil contribution to GDP.
Key Emerging Sectors
The Covid-19 pandemic has had a significant impact on FDI in UAE, it is estimated that the investments might start recovering by the year 2022. Some of the major segments that will see an increase in investments are e-Commerce, IT, Innovation, Healthcare, Manufacturing, Retail and Food & Beverage (F&B). Similarly, the emerging sectors that would see an increase in FDI are Communication Networks, Artificial Intelligence, Blockchain, 3D Printing and Machine-to-Machine Communication.
Research Konnection is one of the leading market research companies in Dubai that assists local and international companies to set up or expand businesses in Dubai, Abu Dhabi and UAE. At Research Konnection, we specialize in Market Research, Feasibility Studies and Business Plan Development. Feel free to reach out to us on email@example.com…October 29, 2020