Category: entreprenuership

Do you need a business opportunity in Dubai but lack the necessary funds to invest? Look nowhere else! We have put up a list of 2023-appropriate low-investment company ideas. There has never been a better moment to launch your own business in Dubai thanks to the city’s booming economy and expanding tourism sector. There is something for everyone here, from online businesses to specialty retail outlets. So gather your notes, grab a pen and paper, and get ready to realize your entrepreneurial ambitions! In Dubai, now is the ideal time to create a corporation.

Why founding a low-investment firm in Dubai is advantageous:

A low-investment business in Dubai can be a great place for you to start your own business. Businesses profit from Dubai’s sizable consumer market, advanced infrastructure, and stable economic environment. You may test the waters with a low-investment firm and gain useful expertise before starting on bigger, more capital-intensive efforts.

List of low-risk business opportunities in Dubai:

1) An e-commerce firm: With the popularity of online shopping, this is a successful business venture. Online book stores, supermarket stores, and fashion boutiques are common low-investment company ideas in Dubai. You may quickly and easily set up your online business using platforms like Shopify or WooCommerce.

2) Ideas for Home-Based Businesses Another fantastic low-investment option in Dubai is launching a business from your home. Teaching and remotely administrative support are both good examples of services. Instead, you may capitalize on your experience in, say, graphic design, web development, or content generation to provide freelancing services to clients all over the wor

Benefits of starting a home-based business in Dubai:

Greater control: You have more authority over your work and business when you run a home-based business. It can be liberating and satisfying to be able to make judgments without seeking the approval of a management or boss.
Having flexible working hours: You can set your own hours when you work from home. This could be a tremendous help if you also have obligations to your family or yourself.
Reduced overhead expenses By working from home, you can save money on things like rent, utilities, and transportation. It’s critical to keep operating costs as low as feasible in the early phases.

Productivity gains: Since you won’t be concerned about distractions like office politics or a noisy work environment, home-based enterprises can help you enhance your productivity.
Flexible workspace: Since you’ll be working from home, you can set up your office anyway you see fit. This can improve both your comfort and productivity at work.
In conclusion, starting a home-based business in Dubai can provide numerous advantages and chances for business owners who want to create a lucrative enterprise while taking use of the advantages of working from home.

The following are the steps to launch a home company in Dubai with little capital:

If you wish to launch a home-based business in Dubai with little capital, adhere to these steps:

1. Obtain the greatest business strategy possible.
2. Make a strategy that outlines the goals of your business, the target market, and the expected sources of income.
3. Register your company in Dubai.
4. Take advantage of any licenses or permissions needed to operate your business legally.
5. Make sure your home-based business complies with all relevant laws and ordinances.
6. To spread the word about you, set up a website and social media accounts.
7. Start spreading the news and attracting customers.
   

   The comprehensive procedures to launch a business in Dubai:

   1. Establish a Legal Structure and a Type of company Activity: The first stage is to choose a legal structure and a type of company activity. Limited Liability Companies (LLC), Free Zone Companies, Sole Proprietorships, Branch Offices, etc. are just a few of the business formats available in Dubai. Choose the option that best fits your company’s needs.
   2. Apply for registration with the Department of Economic Development (DED) and reserve a company name: You need to reserve a company name and submit an application for initial approval to the Department of Economic Development (DED) after deciding on the legal structure and business activity. Initial approval costs AED 110, and a name reservation costs an extra AED 210.

   3.Memorandum of Association (MOA) of the Company to be notarized at DED: The next step is to prepare the MOA and have it notarized at DED. The MOA specifies the company’s goals, shareholding arrangements, and other important information. For three copies of the MOA, there is a notarization fee of 0.25% of the capital, plus AED 5 for each additional page.
   4. Obtain a trade license, file company documents with DED, and sign up for DCCI membership: Once the MOA has been notarized, submit it to DED along with other business paperwork to obtain the trade license. Depending on the business activity and legal structure, different trade license fees apply. Register for membership in the Dubai Chamber of Commerce and Industry (DCCI) after obtaining the trade license. It need roughly three days to complete entire process.

5. Obtain an Establishment Card by contacting the Ministry of Labor: An essential record needed to open a business bank account, apply for visas, and access other government services is the establishment card. Visit the Ministry of Labor to request an establishment card. The establishment card costs 2,000 AED.

6. Register Native Workers with the General Authority for Pension and Social Security and the Ministry of Labor: Last but not least, register any native workers with the General Authority for Pension and Social Security and the Ministry of Labor. This action is free of charge.
a variety of factors such as the legal structure and type of business, it generally takes 7 to 10 days to launch a business in Dubai. Based on the same criteria, the price can change.

The United Arab Emirates (UAE) has continuously expanded its commercial opportunities for Indian entrepreneurs, allowing them to carry out and realize their business plans in Dubai.

The concept of business establishment has changed as a result of the government’s progressive vision. Profitable specialized zones are available in the UAE to concentrate on particular economic sectors. Additionally, the UAE government offers many benefits to Indian business owners who set up shops in Dubai. The financial inflow has led to flourishing firms in the UAE.

So keep reading if you wish to launch a business in Dubai. You may learn about some of the profitable business concepts in Dubai through this site.

Due to the support and traction they have gotten, certain company ideas in Dubai have been extremely successful. The top ten business concepts in Dubai are as follows.

1. IT Solutions
   In its IT industry, the UAE has made major investments. According to recent studies, the UAE stands out among its competitors as the best in the Middle East and Africa. The nation’s stance on the application of artificial intelligence (AI) is particularly significant. According to Price Waterhouse Coopers (PwC), by 2030, artificial intelligence (AI) will significantly contribute to the UAE’s gross domestic product (GDP), cementing the country’s position as the region’s top user of AI.
2. E-commerce Business
   E-commerce solutions are one of the industries that Dubai has greatly benefited from. E-commerce platforms are necessary as a result of previous lockdowns, travel restrictions, and store closings. Cashless and contactless payments are changing consumer behavior. With little money and careful market research, you could run a successful internet store in the UAE.
3. Tourism and Travel
   According to UNWTO, the total number of domestic and foreign tourist journeys might reach 37.4 billion by 2030. In the UAE, events also contribute to the growth of the tourism industry. Tens of thousands of people attend these UAE government-sponsored events. Additionally, the UAE started issuing all nationalities multiple-entry tourist visas in 2021. Dubai will continue to rank among the top tourist destinations on the planet as a result.
4. Healthcare Industry
   Spending on private healthcare in the UAE may rise at a CAGR of 8.5%. The per capita cost of medication is high, and e-commerce is growing, thus the ePharma business has tremendous growth potential as well. This increase is facilitated by the advancement of technology and the growing desire for novel treatments to address unmet medical needs. As a result, Dubai has a variety of opportunities for healthcare businesses. After obtaining the required approvals, you can launch your healthcare venture.
5. Tools and Services
   For maintenance and repairs, businesses and residents alike need technicians, electricians, plumbers, and other technical experts. In essence, they require someone who can complete the task without their direction or input. Your business can grow to its full potential in Dubai if your handyman agency can provide personnel who are qualified, experienced, competent, and reliable.
6. A real estate firm
   Real estate has been started by many immigrants, both those with families and those without. The demand for low- to middle-income seniors who desire to live in senior housing will also increase in the following years. Consequently, you are able to launch a business in Dubai that provides real estate services for commercial, residential, and industrial properties.
7. Hair Salon
   The UAE is one of the top markets for businesses in the beauty industry because of its high quality of living. You can think about starting a beauty salon in Dubai if you are a licensed beautician, have an interest in the industry, or are talented in skincare, makeup, or hairstyling. Furthermore, whether you want to start a brand-new company or expand an existing one, a beauty salon in the UAE is a great spot to do so.
8. Advisory Service
   A business that provides consulting services can be started by a person who possesses the required certifications and significant knowledge in a certain sector. A wide selection of consulting services are available for your business to pick from, including those in IT, management, marketing, operations, HR, strategy, compliance, etc. However, be sure you have all the required approvals before incorporating your company and beginning operations.
9. Lodging and dining
   In Dubai, there is a vast variety of tastes and options. For the past few years, they have been spending a lot on travel and recreation. Therefore, a restaurant serving top-notch food will succeed in the emirate. Dubai’s restaurant business is able to thrive because of the large number of expats that reside in the emirate. The business of hotel chains has also grown as a result of the heightened investor interest and further tourism investments made by the UAE government.
10. Maintenance Services
    Starting a cleaning company in Dubai is not too difficult. Cleaning services for residences, establishments, or factories could be included. Evaluate the infrastructural, capital, and labor requirements. Keep in mind that a cleaning business, particularly an industrial cleaning business, may need substantial equipment, a sizable personnel, and a solid infrastructure. Select the solution that best suits your needs.

Mohammad Ali Rashed Lootah: “Strengthening our standing in the European market reflects a further significant milestone that will allow us to capitalise on the possibilities generated by the Dubai Economic Agenda and bring us nearer to achieving the objectives of the emirate’s five-year foreign trade plan.”
“Our new office in Milan is set to drive further growth in Dubai’s non-oil trade with Italy and other European countries, as well as greater strategic investments from businesses in both markets,” says a statement from the company.
“We are happy to see the establishment of a representative office for Dubai International Chamber in Milan,” said Naser Al Khaja. This underscores our shared objective of fostering links and economic prospects, as well as creating a network of trade and investment between two vibrant markets.

The Milan office will cultivate close ties with significant players in the public and private sectors and offer the Italian business community highly targeted help.
The opening of the new office is a component of the ‘Dubai Global’ strategy, which aims to draw new business, investment, and talent to the emirate while facilitating the expansion of Dubai-based enterprises into key worldwide markets.
In 2022, bilateral non-oil commerce between Dubai and Italy reached AED 33.7 billion, an increase of 7% from the previous year.
During the first seven months of 2023, 228 new Italian firms registered with the Dubai Chamber of Commerce, up 49% over the corresponding time in 2022. With the recent additions, there are now 1,758 member companies from Italy overall.

To promote commerce and investment between Dubai and Italy, the Dubai International Chamber, one of the three chambers functioning under the Dubai Chambers umbrella, opened a new representative office in Milan. Following the opening of its London office in June, the opening further expands the chamber’s footprint in Europe and brings the total number of its international representative offices up to 23 worldwide.

The opening of the new office is a component of the ‘Dubai Global’ initiative, which was unveiled by His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Executive Council of Dubai, and aims to create a networked system of 50 representative offices globally by 2030.

The project aims to facilitate the international expansion of Dubai-based businesses into 30 priority countries while strengthening Dubai’s status as one of the top commercial centres in the world by luring investments, talent, and new business to the emirate.

Naser Al Khaja, Charge d’affaires at the UAE Embassy in Italy, and Salem Al Shamsi, Vice President of Global Markets at Dubai Chambers, participated in the official inauguration ceremony for the Milan office in the presence of esteemed members of the Italian business community.

Strengthening our footprint in the European market constitutes another crucial step that will allow us to take advantage of the opportunities presented by the Dubai Economic Agenda and bring more businesses to the region to achieve objectives of emirates five year foreign trade plan, said Mohammad Ali Rashed Lootah, President and CEO of Dubai Chambers.

Our new office in Milan is expected to spur additional strategic investments from companies in both markets as well as further expansion in Dubai’s non-oil commerce with Italy and other European nations. I have faith that this strategic opening will further strengthen our already close bilateral ties.

“Over the years, the UAE has successfully built strong relationships with Italian companies and institutions,” said Naser Al Khaja, Charge d’affaires of the UAE Embassy in Italy. With the inauguration of the Dubai International Chamber’s representative office in Milan, we are happy to see how these collaborations have grown. This affirms our shared objective of fostering ties and business prospects between the two nations as well as creating a network of trade and investment between them.

In accordance with the UAE’s comprehensive vision and its balanced approach to economic and social development, he continued, “I think efforts such as these help in improving the distinguished connection between the UAE and Italy, drawing mutual investments, and establishing new partnerships and business projects throughout a variety of key knowledge- and innovation-driven sectors.

The Milan office, the ninth international representative office for the chamber to establish since the year’s beginning, will foster close ties with significant public and private sector players and provide a wide variety of assistance to the Italian business community.

The opening contributes to the objectives of the ‘Dubai Global’ initiative, which aims to draw foreign businesses, SMEs, investors, and international talent to Dubai by showing the emirate’s competitive advantages, sharing market intelligence, and enhancing engagement with important international stakeholders.

Dubai and Italy’s bilateral non-oil commerce reached AED 33.7 billion in 2022, an increase of 7% from the previous year. The number of Italian member businesses at Dubai Chamber of Commerce increased by 228 over the course of the first seven months of 2023, a 49% rise over the same period in 2022 and bringing the total to 1,758.

Machinery, precious stones and metals, aluminum, tobacco, auto parts, footwear, and leather goods are some of the major trade industries between the UAE and Italy. By seeing and seizing on fresh trade and investment opportunities in sectors including pharmaceuticals, agribusiness, the automotive industry, and consumer goods, Dubai International Chamber seeks to further strengthen the commercial links between the two nations.

Due to its advantageous location and top-notch logistical infrastructure, Dubai has become a top trading location for Italian businesses with international aspirations. The emirate provides easy access to more than 2.2 billion consumers and acts as a springboard for Italian companies to grow their presence throughout the Middle East and beyond. As part of its efforts to increase non-oil international trade to AED 2 trillion by 2026, in line with the challenging goals of the emirate’s five-year trade plan, Dubai International Chamber remains committed to enhancing bilateral trade and investment with Italy.

The objective of the MoU is to assist and advance businesswomen in the economic and investment sphere.

– It is Jadwa Investment’s first collaboration with a local businesswomen’s council.
A Memorandum of Understanding has been struck between the Abu Dhabi Businesswomen Council (ADBWC), a division of the Abu Dhabi Chamber of Commerce and Industry (ADCCI), and Jadwa Investment, a prominent investment management and advising firm in the MENA area. In order to encourage and empower businesswomen, foster the expansion of their enterprises, and increase their visibility in the economic and investment scene, the MoU seeks to discover opportunities for cooperative cooperation.

The MoU was signed at the Chamber’s Building, marking Jadwa Investment’s first collaboration with a businesswomen council in the area.

Along with other members of the Council and Jadwa Investment, the ceremony was attended by Her Excellency Marwa Al Mansouri, a board member of the Abu Dhabi Businesswomen Council, and Mohammed Al Aswad, the company’s head of international relations.

According to the conditions of the Memorandum of Understanding, the two organizations will collaborate to support female business owners and SMEs. Together, the Council and Jadwa Investment will put on events including forums, conferences, forums, workshops, seminars, lectures, and more to further their shared objectives. They will also showcase the services offered by each party, exchange experiences, consultations, and studies that are pertinent to their shared interests.

The Abu Dhabi Businesswomen Council is always eager to work with different organizations to empower businesswomen and assure the growth and prosperity of their projects and businesses, according to Her Excellency Marwa Al Mansouri, a board member of the organization. This is essential for promoting the Emirate of Abu Dhabi’s sustainable economic growth and elevating women’s status as force-multipliers for change, innovation, and the UAE’s future.

“The Council’s cooperation with Jadwa Investment, one of the biggest investment management and investment services firms in the MENA region, is a unique chance to empower women in all areas of finance, business, trade, investment, and all business sectors,” Her Excellency continued.

In the MENA region, Jadwa Investment is a pioneering business in the fields of investment management and investment advice services. It offers a variety of investment alternatives to its clients that are in line with the rules and guidelines of Islamic Sharia.

Meat, grains, and dairy items all saw declines, but sugar slightly increased.
According to the UN’s Food and Agriculture Organization, global food prices dropped in August as vegetable oil prices fell in response to declining import demand globally and an abundance of offers from significant producers. However, rice prices increased.

According to the UN organization, the FAO Food Price Index, which measures the monthly change in the international prices of a variety of food commodities, average 121.4 points in August, down 2.1% from July and up to 24% from its top in March 2022.

In contrast, the FAO’s rice index increased 9.8% on a monthly basis to reach a nominal high not seen in 15 years. According to FAO, this was caused by “trade disruptions following India, the world’s largest rice exporter, banning Indica white rice exports.”

“Uncertainty about the ban’s duration as well as worries over limitations on exports caused supply-chain actors to hold-on to stocks, renegotiate contracts, or cease submitting price offers, thus restricting most trade to small volumes and previously concluded sales,” it stated.

As the price of vegetable oils surged, the total index increased from a two-year low in May to 123.9 in July.

“The decrease [in August] was driven by falling price indices for dairy goods, vegetable oils, meat, and cereals, while the sugar price index increased moderately.

The vegetable oil price index fell by 3.1%, reversing a significant 12.1% increase in July that was primarily driven by an 8% reduction in the price of sunflower oil.

While soy oil prices declined as soy bean harvest conditions in the US improved, palm oil prices only slightly decreased despite leading South-East Asian producers’ seasonally higher output.

As double-digit food inflation affects poorer households and worsens food insecurity over time, it will have a negative impact on the expansion of Mena economies this year, according to a World Bank analysis published in April.

The analysis, which looked at the effects of rising food costs on the region, predicted that nearly eight million children under the age of five will go hungry this year and that one in five people living in developing nations in the Mena region will experience food insecurity.
August saw a 0.7% decrease in cereal prices from July as both the price of wheat and coarse grains fell globally by 3.8% and 3.4% respectively.

Prices for both sorghum and maize dropped for the seventh consecutive month, reaching their lowest level since September 2020. Prices for barley somewhat increased.

The dairy price index was down 4% from July, marking the eighth consecutive month of declines, and up to 22.4% below levels recorded during the same period in 2022.

Skimmed milk powder costs touched their lowest point since mid-2020, while prices for other dairy products fell internationally. Whole milk powder prices fell the greatest. Prices for cheese and butter both decreased.

Meanwhile, rising worries about how the El Nino weather phenomena could affect prospects for global output drove the sugar price index up 1.3% month over month and as high as 34.1% from a year earlier. The price of all forms of meat decreased, with the meat price index falling by 3% from July and by 5.4% from the same month last year.

The largest overseas market and worldwide production hub for a tech company is China.
As China prepares to extend its ban on the use of iPhones to state-owned businesses and organizations with the support of the government, Apple shares dropped by roughly 3% on Thursday, wiping out $190 billion in market value in only two days.

The Cupertino, California-based company’s shares experienced their worst two-day decline in a month, falling 6.4%.

The largest component of the main US market indices is Apple, which has contributed to a wider sell-off that was partly spurred by a long list of problems in China.

The second-largest economy in the world has been in decline due to a lengthy real estate market crisis, which is endangering the demand for anything from commodities to consumer goods.

On Wednesday, it was revealed that employees of central government agencies had been instructed not to use their iPhones while at work or to bring them into the workplace.

The next day, it was revealed that Beijing intended to extend the ban on the use of iPhones in sensitive sections of state-owned businesses and government-backed agencies, a sign of mounting difficulties for Apple in its biggest foreign market and base of operations worldwide.

Beijing also plans to apply that limitation far more extensively to a large number of state-owned companies and other government-controlled organizations, according to people with knowledge of the situation.

Apple’s problems are made worse by rising US Treasury yields as bonds decline due to concerns that the US Federal Reserve would need to intensify its fight against inflation given how strong the US economy is.

The news is having a significant impact on the markets, and investors are dumping everything from semiconductors to US-listed Chinese equities to mega-cap technologies.

As one poor Apple ruins a number of mega-cap tech firms, the Nasdaq is falling, according to Edward Moya, senior market analyst at Oanda.

Apple’s development story is highly dependent on China, and if the crackdown in Beijing worsens, that might be problematic for the many other mega-cap tech businesses that also depend on China.

The timing of the proposed ban, according to Bank of America analyst Wamsi Mohan, is “interesting” given the recent release of Huawei Technologies’ premium 5G smartphone.

With Huawei’s Mate 60 Pro being powered by 7nm chips from Semiconductor Manufacturing International, the new device’s disassembly reveals that Beijing appears to be making early strides in a national push to sidestep US efforts to curb its rise.
If Beijing implements a ban, several additional US technology businesses that rely on Chinese sales and production may be impacted by the unprecedented blockade.

On Thursday, Apple suppliers traded lower on all continents as numerous sources corroborated China’s most recent moves.

The impact of a “iPhone ban is way overblown,” in the opinion of bullish analysts like Daniel Ives of Wedbush Securities, because it would only apply to fewer than 500,000 of the 45 million iPhones he projects will be sold in the nation during the following 12 months.

“Despite the loud noise, Apple has seen massive share gains in the China smartphone market,” Mr. Ives, who has an overweight rating on the stock

According to Amit Daryanani of Evercore ISI, Apple is unlikely to experience a major financial effect as a result of China’s restrictions.

Since most iPhones are made in the country, where most government officials work, it would be difficult for the country to take more serious action against Apple without impacting jobs there.

Thanks to its strategic position, pleasant environment, and liberal trade laws, Dubai has become a popular destination for businessmen from all over the world. The city can provide a special opportunity for ambitious people wishing to expand their enterprises.

The journal continued by saying that the prospective tax benefits and appealing labor laws are two of the most significant benefits for entrepreneurs who expand their firms in Dubai because the emirate offers a business-friendly tax environment.

The UAE declared that it would enact corporation taxes in 2022 to aid small enterprises. The UAE wants to keep its position as a top location for business and investment, thus the legal tax rate in the nation will be 9% on taxable income that exceeds Dhs375,000 ($102,000). This is one of the lowest and most competitive corporate tax rates in the world.

Entrepreneurs may be able to improve their revenues as a result and reinvest them to expand more quickly.
Dubai may be a desirable location for businesspeople looking to increase their financial earnings because there are no personal income taxes and no taxes on investments in stocks, real estate, or other financial assets.

Additionally, the government has created free zones for foreign investors, which offer specialized support services and streamlined procedures.

The ability to repatriate cash and profits is one among the many benefits offered by these free zones, along with 100% ownership, exemptions from import and export duties, and corporation and income tax exemptions.

The city draws in a talented labor force from a variety of backgrounds, which contributes to the development of a multicultural corporate climate that fosters cooperation and innovation. To help their firm expand more quickly, entrepreneurs can access a wide network of like-minded people, potential customers, investors, and mentors.

Entrepreneurs in the technology and e-commerce industries have a distinct advantage in Dubai as well as the chance to profit from underserved markets with lower levels of competition. Dubai keeps growing as a significant participant in the technology and e-commerce industries, even though other big global technology hubs may be full. Entrepreneurs can increase their market share and position themselves as industry leaders by being an early adopter and providing creative solutions.

The city embraces technology advancements and works to create a futuristic setting that encourages creativity across a range of industries.

Dubai-based businesses looking to grow can take advantage of this ecosystem and cutting-edge programs that promote innovation and creativity.

According to Wood Mackenzie, the market for wind turbines outside of China and North America increased by 12% in the first half of 2023.

The energy consultant stated in a study on Thursday that the total amount of orders received during the period hit a record 69.5 gigawatts, with orders from outside China increasing by 47% from the same period a year earlier.

With two offshore contracts accounting for over half of the total, North American orders increased by more than four times to 7.7 gigawatts.

Although 44 gigawatts of orders were placed in the first half of this year in China, the world’s largest consumer of renewable energy, the report stated that demand was unchanged from the previous year.

Global orders totaled $25.3 billion in the second quarter and $40.5 billion in the first half, respectively.
Luke Lewandowski, vice president of global renewables research at Wood Mackenzie, said, “We’ve seen substantial interest outside of China this year, which is really encouraging.”

Although there are still issues with the supply chain, things have become better enough to encourage purchasing decisions.

Order activity has been aided by momentum from the Inflation Reduction Act (IRA) in the US, but volume will increase as clarity and market certainty improve.

The IRA, passed last year, promotes the purchase of electric vehicles and offers a number of tax benefits on renewable energy sources, such as wind, solar, and hydropower.

According to Goldman Sachs, it is anticipated to stimulate $3 trillion in investments in renewable energy technology.

In the first half of the year, offshore order intake increased by 26% to a record 12 gigawatts, according to Wood Mackenzie. It increased by 48 percent to 9.1 gigawatts in the second quarter.

As project developers awaited permits and clearances, “momentum had been growing in the offshore market for some time, and many deals had been subject to those conditions.”

According to the Global Wind Energy Council, 2022 was the “second-best” year for new capacity for the offshore wind industry globally, with 8.8 gigawatts of new renewable energy being connected to the grid globally.

According to a report released this week by the council, nearly half of the 380 gigawatts of new offshore wind capacity that will be built by 2032 will originate from the Asia-Pacific area.

Due to delays brought on by permitting and other regulatory concerns, the council revised its short-term projection downward for Europe and North America and stated that supply chain bottlenecks were a danger for all regions except China.

Slow permission clearances, increased costs for raw materials and shipping, and other issues are posing major hurdles to the European wind industry, particularly turbine manufacturers.

In the meanwhile, as nations attempt to solve future energy shortages, investment in clean energy is predicted to exceed $1.7 trillion this year, overtaking spending on fossil fuels, according to the International Energy Agency.

According to the Paris-based agency’s World Energy Investment report from April, global energy investments are expected to total $2.8 trillion in 2023, with more than 60% of that amount going toward sustainable technologies including renewable energy, electric vehicles, nuclear power, and heat pumps.

Coal, gas, and crude oil will make up the final 40% of spending.

Experts predict that the GCC retail sector will continue to grow strongly in the near future and will be worth $308 billion in 2023.

Unquestionably, the sector has benefited from the post-pandemic recovery, but opportune governmental changes have also contributed to women’s labor participation, company accessibility, and macroeconomic stability. These elements have a domino impact on consumer confidence and retail expenditure. Retailers have thus made deliberate attempts to stay up with those changes.

Customers are at the center of the redesigned retail tactics. With the growing adoption of digital technology, this shift entails using customer data to tailor brand communications and offerings. For consistent consumer experiences, top brick-and-mortar shops have systematically embraced e-commerce by integrating various channels.

According to Shehbaz Shaikh, chief retail officer of Redtag, a top value fashion and homeware brand in the GCC, these trends have significant ramifications for the sector’s future.
Fundamentally, being customer-centric means keeping up with customer movements, whether those be their shopping habits or preferences. The 98 percent internet penetration rate in the GCC has increased e-commerce. However, this is not the price of traditional brick-and-mortar retail. Both are structurally in demand, with the same consumer favoring online and offline shopping depending on the situation. In such case, being customer-centric means taking special note of each customer’s preferences.

Understanding the distinctive interests of a wide range of clients is crucial for businesses in this situation. Possibly, that is where Big Data and AI analytics come in.

We can comprehend what a customer wants, when they want it, and how they prefer it supplied by integrating data from functions throughout the retail value chain. In other words, customer-centricity represents a paradigm change from traditional vendor-driven commerce in that we now cater to client needs rather than our own or that of our suppliers.

Why is it so important in the GCC today to integrate online and physical retail?

According to numerous studies, 265 million individuals in the Middle East, or around 55% of the region’s population, are familiar with how omnichannel shopping works. The commercial argument for merchants offering “phygital” experiences to customers is therefore compelling. The same reasoning underpinned all of Redtag’s recent e-commerce initiatives.

Opponents of omnichannel retail bear the risk of greater customer attrition, which is unviable in a market where the churn rate can already be as high as 7%. That being said, traditional brick-and-mortar stores will not be able to stand out from the competitors with a simple e-commerce platform. Efficiencies in service delivery and consistent client experiences must be the goals of the omnichannel strategy.

How do merchants implement an effective omnichannel strategy?

The lifeblood of multichannel retail is customer data. So gathering the data is the first thing to do. To establish a single source of truth, it typically entails breaking through the barriers across diverse retail disciplines. For the same, Redtag implemented a customer data platform (CDP), combining data from various channels to get a comprehensive view of a customers behaviour.

The data must then be contextualized in order to yield insightful conclusions. Here, a customer experience management (CEM) platform is used to create “connected intelligence” out of unstructured data. The deep-learning models will assist brands in optimizing their inventory in line with changing client expectations and demand when combined with other technologies, such as enterprise resource planning (ERP). Marketing teams will be able to give individualized recommendations and services by segmenting the audience according to demographics, interests, and preferences with the aid of the acquired insights. Personalization is a crucial component of an effective omnichannel strategy.

Why is product/service personalization a necessary component of GCC retail today?

The focus on personalization is driven by a high level of customer awareness. GCC is seeing clear sociocultural changes, particularly in relation to women’s employment rates and rising purchasing power. Millennials and Gen-Z, who make up a substantial portion of the population in the area, are also steadily growing their percentage of retail spending, which has an impact on the sector’s strategic orientation. They are digital natives who have a thorough understanding of the range of market products, price points, and value propositions.

How do multichannel shopping, the emphasis on personalization, and expanding FinTech use relate to one another?
Modern retail is a wonderful fit for fintech because it is intended to enhance and automate the delivery of financial services according to end-user requirements. Retailers have enthusiastically embraced full-stack financial solutions in an effort to expedite and simplify vital processes like e-billing and refunds. Most significantly, FinTech platforms have improved accountability and transparency in retail operations, which has increased consumer confidence and encouraged spending. Future customer-centric loyalty programs will be made possible by the developing FinTech-retail synergy in the GCC. More use cases will continue to develop as retail increasingly goes digital, which shows no indications of slowing down any time soon.

According to figures from the central bank, these savings deposits grew by 5.8% each month.
According to the most recent statistics provided by the Central Bank of the UAE (CBUAE), banks in the UAE held savings deposits of Dhs268.6 billion by the end of June 2023. According to state news agency WAM, interbank deposits are not included in this.

According to figures from the central bank, the amount of these deposits climbed by 5.8% each month, or Dhs14.8 billion.

Money saved in UAE dirhams
About 81.6 percent, or Dhs219.17 billion, of the savings deposits were made in the local currency, the UAE Dirham. 18.4% of the whole amount was made up of foreign currencies, worth Dhs 49.44 billion.

Savings deposits in banks have grown significantly.

These deposits totaled Dhs152 billion in 2018. In 2019, Dhs172.2 billion, Dhs215.2 billion, Dhs241.8 billion, and Dhs245.8 billion were added to this amount.
deposits of CBUAE

The CBUAE released its budget for the first half of the year earlier this month. The public budget of the central bank increased by 32.15 percent, or Dh158 billion, compared to about Dh91.4 billion in June 2022.

This growth continued into the current year, increasing by 17.5% from the beginning of the year to reach Dhs552.5 billion at the end of December 2022, an increase of Dhs97 billion over the first half of the year.

The assets side of the budget’s allocation specified that Dhs257.2 billion would be allocated to cash and bank balances for June. Investments kept till maturity were also designated at Dhs211.32bn.

Allocations for loans and advances and other assets totaled Dhs4.18 billion and Dhs41.38 billion, respectively.