Why Market Research is Important when Investing in Dubai?

In this article, I have simplified the process of investing in Dubai or UAE. I will share practical investment advice and tips with you and suggestions are based on the work experience that I have accumulated over the last 14 years. From the platform of Research Konnection, which is the leading market research company in the UAE, I assist clients with market research and business planning. I intend to pass on this knowledge and wisdom that is needed to successfully set up and operate your business in the country. I invite you to read about my profile and feel free to connect with me on LinkedIn.

Determining Sector Attractiveness 

Unlike many high-profile cities globally, Dubai is unique in its build-up. This is because it is one of the most diversified economies in the world. This also means that Dubai’s GDP is clustered into many sectors. Some of them include Food & Beverage, Hospitality, Logistics, Real Estate, Trade, Financial Services and Manufacturing. Before investing in Dubai, you may have many business ideas but the first step is to ascertain which sector(s) you wish to invest in. Bear in mind that every sector has a different return on investment, and it is best to shortlist one or two sectors that pique your interest. 

Conducting Market Research

According to an article published in Forbes, almost 50% of small businesses fail within five years. Beyond that, only 33% survive the ten-year mark. Major reasons attribute to the lack of evaluation of the market need and competitive environment. Therefore, the second critical step before investing in Dubai is to conduct market research. The importance of market research is often underestimated by entrepreneurs and investors. However, market research exercises can help in assessing the viability of the business concept. It also provides an overview of the competitors and their positioning in the market. 

Selecting a Market Research Firm

Researching is a specialized skill, and it takes decades to hone it. Not to forget, researchers need to be curious in retrieving data that can add value and have a meaningful impact. More often, a classic mistake many entrepreneurs make is to conduct research themselves that too mostly online. As a result, the investment decisions are typically impaired. 

Recently, Harvard Business Review published an interesting article on the same – Ignore Costly Data and Rely on Google Instead? The findings revealed that since the Google data is free and the sample is small, the results are potentially biased and unreliable. The accuracy and validity of the data is debatable and if one is planning to invest hard-earned money it is not a wise decision.

Therefore, the third step is to select a market research firm that specializes in the industry that one wishes to invest in. But this is not all. One also needs to assess whether the firm is the right fit to support entrepreneurial endeavors or not. Especially when it comes to Dubai, the profile of the firm plays an important role. 

In my opinion, it is important to review the credibility of the firm as well as of the business consultant. Together with my team, I have worked tirelessly for the past 12 years to build a reputation. My clients have left detailed reviews on Google and Clutch. Today, we are a leading boutique market research company in Dubai. We are passionate about supporting businesses to successfully expand in Dubai or UAE. We possess extensive market knowledge and believe that we can be your growth partner.

Having a Solid Business Plan

There is a famous quote by Benjamin Franklin. If you fail to plan, you are planning to fail. This is true in the business world as one invests time and resources in a venture. Most often without a business plan, many ventures fail. Therefore, it would be worthwhile to have a business plan prepared by an expert. A solid business plan will give you clarity, an operational roadmap and an overview of the investment required. Please feel free to reach out to us for business plan services in Dubai.

Above are some key factors if implemented can ensure a successful start with launching a business. With that, I wish you all the best. Remember as Richard Branson once said—Big business starts small.
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Research Konnection is the best market research company in the UAE. We specialize in Market Feasibility Study and developing Business Plans in Dubai and Abu Dhabi. Tell us hello@researchkonnection.com