Reports

Abu Dhabi Government Support for SMEs demonstrates their importance to UAE Last year, the government of Abu Dhabi announced that they would allocate 15% of annual procur…

Abu Dhabi – Economic Overview 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 the previous year, because of the low 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. The oil and gas sector is the primary source of Abu Dhabi’s GDP contributing to more than 40% of the overall value. However, with the economic diversification strategies of the UAE government and its initiatives to boost the development of the Emirate’s non-oil and gas sector, is gradually lowering the dependency on oil & gas. Abu Dhabi injected approximately AED 50 billion (USD 14 billion) 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. In 2030, the emirate aims to have a sustainable economy that is not dependent on the oil and gas sector. Abu Dhabi – COVID19 Implications  Due to the Covid-19 outbreak, 2020 was an extremely challenging year for Abu Dhabi. Experts forecasted a decrease in GDP by 3-4% in the forthcoming years. Despite this, the economy of Abu Dhabi has already started to recover from the pandemic thanks to an economic stimulus package launched by the government to ensure that Abu Dhabi’s economic diversification goals are achieved and the impact of the corona-virus outbreak on citizens and businesses were substantially lowered. Investment Opportunities in Abu Dhabi This Abu Dhabi government is quite optimistic about its economic growth in the forthcoming years. They predict that Abu Dhabi’s economy will grow at the level of 6-8% in 2021 and 2022, as a result of foreign investment, government spending, the oil price rebound and activities within the financial services. Furthermore, the emirate is planning to invest in advanced technology, such as e-commerce and artificial intelligence, since Abu Dhabi is positioning itself as a tech hub and attracting companies in healthcare, agricultural technology, and renewable energy sectors which are considered to be crucial for the emirate’s economic growth. Abu Dhabi provides excellent opportunities for foreign investors and multinational companies across healthcare, renewable energy and agricultural technology companies to enter and establish their business in the Emirate. 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 research, feasibility study and business modelling. Feel free to reach out to us at hello@researchkonnection.com…

Abu Dhabi’s Industrial Sector a Major Contributor towards Non-Oil GDP The report, issued by the Industrial Development Bureau of Abu Dhabi Department of Economic Development revealed that Abu Dhabi’s industrial sector contributed to approximately 10.7% of the non-oil GDP and 6.3% to the overall GDP for the year 2020. More than 51 industrial facilities started their production last year in UAE, which had a total investment of AED 4 billion (USD 1 billion). More than 35 of these facilities went into production in Abu Dhabi, while 11 in Al Ain and 5 in Al Dharfa. The rise in industrial facilities in UAE, especially in Abu Dhabi, reflects the growing role of the industrial sector in driving the emirate’s sustainable economic development. Metal, food, chemicals, equipment and machinery accounted for more than 50% of the new facilities. Major Industrial Facilities in Abu Dhabi Comprises of: Metal Food Chemicals Equipment Machinery Abu Dhabi Government has taken measures to promote the role of the industrial sector as a key driver of sustainable economic development. Some of the major factors that they focused on are enhancing Foreign Direct Investment (FDI) and by providing incentive packages for the business operating in the sector. Despite the pandemic situation impacting economies and investments around the world, Abu Dhabi has seen a streamlined investments from the FDI during the year 2020. This reflects investors’ confidence in the Emirate. Several incentives, initiatives and advantages make Abu Dhabi a centre for attracting investments across the region. Abu Dhabi Industrial Sector – Performance More than 283 industrial licenses were registered in Abu Dhabi, among which 171 were ‘industry pioneer’ licenses, 61 were ‘under construction’ licenses and 51 ‘production’ licenses. The total industrial licenses in Abu Dhabi reached 1,694, for the year 2020 with the overall value estimated to be AED 553 billion (USD 145 billion), including licenses to 839 facilities that were already under production, with an estimated value of AED 362 billion (USD 98.5 billion), 546 facilities which were under construction with an estimated value of AED 181 billion (USD 49.2 billion) and 309 industry pioneer licenses. Chemical industries constitute the highest investment value, reaching AED 211 billion (USD 57.5 billion), followed by energy and sustainability with AED 202 billion (USD 55 billion), construction and glass industries AED 44 billion (USD 12 billion), equipment and machinery AED 10 billion (USD 2.7 billion), food AED 8 billion (USD 2 billion) and other industries around AED 6 billion. (USD 1.6 billion) Investment Opportunities in Abu Dhabi Industrial Sector Over the past 15 years, Abu Dhabi has invested more than AED 51 billion (USD 14 billion) to establish robust industrial infrastructure. It continues to be a key contributor to GDP and major contributor to diversification strategy, moving away from oil and gas based growth. The sector benefits from consistent commitment from the Abu Dhabi Government in line with the Abu Dhabi Economic Vision 2030, and offers businesses cutting edge facilities supporting advanced manufacturing techniques. These provide significant investment opportunities in the Abu Dhabi Industrial Sector. Research Konnection is one of the leading market research companies in Abu Dhabi and UAE. Feel free to reach out to us if for market research, feasibility study and business planning requirements in the United Arab Emirates. …

Gulfood 2021 – Opening New Trade Opportunities in UAE’s F&B Industry The recently concluded Gulfood 2021 event in Dubai was one of the world’s largest Food and Bever…

Gulfood 2021 – Reviving UAE’s Food & Beverage Industry

The Gulfood 2021 kicked off in Dubai on February 21st, after a year of restrictions on the global Food & Beverage (F&B) industry. The return of UAE’s leading trade event has allowed F&B industry professionals to reconnect following the lack of in-person business opportunities in 2020. With a diverse exhibitors and several major F&B players, the exhibition provided thought-provoking conversations between influential chefs, food scientists, government officials and industry leaders. Some of the topics of discussions included the growing Kosher sector in the UAE, TikTok, food waste, retail disruption, tourism and much more.

Food & Beverage Industry Market Overview – 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

Change in Business Model – Food Delivery Service Providers 

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.

Cloud Kitchens Concept on Rise in UAE

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.

Kosher Food in UAE

One of the major topics of discussion during the event was the introduction of Kosher certified food products and how it could emerge as the fastest growing food category in the UAE, reaping the full dividend from the opening up of the UAE-Israel ties. The Israeli visitors at Gulfood stressed the importance for food businesses in the UAE to go Kosher if they want to serve and build good relationships with an entirely new audience of consumers from Israel. 

Read – Report on Investors Survey about UAE Business & Economy

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. Events like Gulfood not only play a critical role in reviving local F&B industry but also solidifying Dubai and the UAE’s position as a major F&B destination across the globe. In addition, the recent UAE-Israeli ties, several investors, tourists and key influencers from Israel are expected to visit the Emirates in the next few years. Although the Kosher food is currently being imported, Kosher certified factories will soon be established in UAE. 

Research Konnection is a leading market research company in Dubai specializing in F&B industry market research, feasibility studies and business setups. Please feel free to reach out to us if you are planning to start or expand your food business in UAE.…

New waterfront shopping destination announced in Dubai

Nakheel Malls in partnership with DP World has announced to open Souk Al Marfa, a new waterfront shopping destination in Dubai’s Deira Islands in April 2021. The area of the shopping destination will extend to approximately 1.9 kms along the waterfront and will be in close proximity with Mina Rashid, Mina Al Hamriya and Deira Wharfage. 

The shopping destination can accommodate 2,500 shops and pavilions with facilities for shipping and logistics. Furthermore, Souk Al Marfa will provide several advantages for the business owners including 100% foreign ownership, repatriation of capital and profit, no restrictions on currency movement, logistical ease and amenities such as warehousing, office space, showrooms and Food and Beverage (F&B) facilities.

Apart from offering affordable growth opportunities to traders with multiple benefits, the retail trading hub will operate for 365 days a year. This could promote Souk Al Marfa as one of the major, diverse and large-scale shopping destinations in UAE. The Souk Al Marfa waterfront aims to become a world-class destination for living, tourism, retail and leisure.

Dubai – Retail Market Outlook

The wholesale and retail market of Dubai contributes to more than 25% of the total GDP, with its value estimated at AED 95 billion (USD 25.8 billion) during 2020. Although this was a decrease in the retail sector contribution when compared to the year 2019, primarily due to the COVID-19 pandemic, the initiatives taken by the government have recovered the market and the retail segment in Dubai is expected to grow at a rate of 10% on an annual basis.

Read: Investors are Positive about the UAE Economy

Dubai is popularly referred to as the world’s largest shopping and entertainment destination, as it offers a variety of shopping choices to its residents and tourists. Along with the EXPO 2020, which is to happen this year and the inauguration of Souk Al Marfa, Dubai will further elevate its position as a world-class shopping and travel destination.

Investment Destination in the Middle East

The UAE has positioned itself to become a leading destination hub in the MENA region for business and leisure. It has developed world-class infrastructure with quality airports, hotels, public facilities, and economic zones, which furthers its evolution as an international business destination. The Emirates recorded an exceptional year-to-year growth of FDI (Foreign Direct Investment) by 32%, with an estimated investment of AED 51.5 billion (USD 14 billion) for the year 2020.  The Citizenship reforms, 100% ownership opportunities of businesses, the EXPO 2020 which is to happen in UAE and the establishment of the new waterfront shopping destination will further attract FDIs and startups into the country, thereby creating an economic environment that is conducive for businesses and investments. Contact Research Konnection, one of the leading feasibility study companies in Dubai to assist you with market research, business planning and market entry in UAE.

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 at hello@researchkonnection.com…

Investors are Positive and Confident about the UAE Economy

A survey conducted by Union Bank of Switzerland unveiled that more than 85% of the investors in the UAE have increasingly become confident and optimistic about the economic conditions in the region. Furthermore, half of the investors that were surveyed (51%) believed that life in the Middle East will return to normal before July 2021, while 49% believed that it will not happen until the second half of this year due to the Covid-19 Pandemic (63%), climate change (56%) and fear of a market downturn (55%).

Approximately 86% of the investors saw a clear value in sustainable investments in companies that incorporate social and environmental considerations in their operations and expected the same or even better returns from sustainable investments when compared to the traditional portfolios. Likewise, almost 9 out of 10 of the investors mentioned that they needed more expert financial advice than ever, in order to make better and informed business decision making. 

Overview of Foreign Direct Investments in UAE

Over the past few years, the UAE has taken several measures and introduced new laws to become a leading destination for FDI in the Middle East and North Africa (MENA) region. The year 2019 saw an increase in FDI by 32% reaching AED 47.5 billion (USD 13 billion) and AED 564 billion (USD 154 billion) in stocks. Despite a drop in FDI for the year 2020, the initiatives taken by the government are expected to boost the foreign investments up to 15% in the forthcoming years. 

Some of the key factors for the increase in FDI inflows apart from its political and economic stability are the government initiatives to diversify the economy, new laws in business ownership & Emirati citizenship, the increase in free zones and UAE’s increased FDI inflows is due to its foreign investment deregulation policies which have provided investors more financial incentives to set up or remain in the UAE. 

UAE – Attractive Destination for Investment

The UAE has positioned itself to become a leading destination hub in the MENA region for business and leisure. It has developed world-class infrastructure with quality airports, hotels, public facilities, and economic zones, which furthers its evolution as an international business destination. The Citizenship reforms, 100% ownership of businesses and the EXPO 2020 which is to happen in UAE, is expected to attract international entrepreneurs and investors to leverage the favorable business environment in the country especially in sectors such as Education, Consumer Goods, Food & Beverage (F&B), Healthcare & Fitness, Real Estate, Innovation & Technology and Professional Services. 

Contact Research Konnection, one of the leading market research companies in Dubai to assist you with market research, feasibility studies, business planning and market entry. …