Emerging Industries for New Businesses in the UAE Market in 2024

Image credit: Supplied

The UAE market has traditionally been synonymous with its dominant oil and gas industry. However, there has been a notable pivot towards diversification in recent years. The UAE government has embarked on a proactive strategy to cultivate emerging industries, aiming to diminish reliance on the oil sector and stimulate broader economic expansion.

Let’s explore some of the sectors poised to flourish in the UAE market throughout 2024.

Hospitality

The burgeoning hospitality sector in Dubai is becoming a pivotal element in shifting the city’s economic dynamics, greatly influenced by the arrival of Michelin-star restaurants. These establishments highlight Dubai’s transition into a hub for high-net-worth individuals, cultivating a unique and luxurious dining scene. Comparison of commercial rental prices in prime locations of Dubai, such as the Palm Jumeirah, Dubai Marina, and Downtown, with those of prime regions in New York and London, reveals the city’s competitive appeal in the global market. This is also apparent in the burgeoning demand for private member F&B clubs, mirroring trends seen in major cities like London and New York, thereby enhancing Dubai’s global stature.

Further illustrating the hospitality sector’s expansion is the demand for global fast-food chains and their aggressive plans for cloud kitchens – a modern approach to catering and food delivery. Unlike other geographical locations, Dubai’s infrastructure and economic policies provide fertile ground for the rapid growth of cloud kitchens, offering a cost-effective model for expansion that aligns with the global shift towards digital service delivery in the hospitality industry.

Over the last year, we at Open Hub have successfully inaugurated the growth of multiple Michelin-star restaurants in prime locations across Dubai. Nathan Gatland, Managing Director, emphasises, “Dubai’s allure for these businesses lies in its dynamic and thriving market. The city serves as a global crossroads, offering a unique blend of diverse cultures and a luxury cosmopolitan lifestyle. Its strategic location, coupled with a burgeoning economy, makes Dubai an enticing destination for brands seeking international prominence.”

This sentiment aligns with the recent revelation by His Excellency Mohammad Ali Rashed Lootah, President and CEO of Dubai Chambers, who disclosed that 6,478 new Food and Beverage (F&B) companies joined the Dubai Chamber of Commerce in 2023, representing year-over-year growth of 19.4%

E-commerce

E-commerce in Dubai has always been a frontrunner among the city’s diverse economic activities, consistently ranking in the top three demanded business sectors. The COVID-19 pandemic ushered in an unprecedented surge in online shopping, propelling e-commerce to heights previously unimagined. This spike, while extraordinary, presented questions about sustainability in a post-pandemic world. However, factors such as the ease of doing business in the UAE, low taxation, and its strategic geographical positioning, acting as a bridge seven hours away from two-thirds of the world’s population, have played an essential role in sustaining and further expanding the e-commerce sector.

The allure of managing online ventures from Dubai, while indulging in the city’s luxurious lifestyle, has been irresistible for many. Notably, the trend has also galvanised local residents, offering them the confidence to venture into online businesses or side projects while retaining full-time employment. This has led to a fascinating transformation within the city’s demographic and economic landscape, as stay-at-home spouses and existing UAE residents alike tap into the burgeoning e-commerce wave.

Cryptocurrency

In a bold move that further accentuates Dubai’s adaptability and readiness to embrace the future, the introduction of the Virtual Assets Regulatory Authority (VARA) marks a significant milestone in the city’s economic evolution. This progressive regulatory body is geared towards providing a cohesive and comprehensive framework for the burgeoning cryptocurrency market, ensuring that Dubai stays at the forefront of financial technological innovation.

A testament to this adaptability is the decision by Binance, one of the world’s leading cryptocurrency exchanges, to move its headquarters to Dubai. Binance is the first exchange in the world to secure an Operational MVP License from Dubai’s Virtual Assets Regulatory Authority (VARA). By integrating cutting-edge technologies and frameworks, such as those overseen by VARA, Dubai is not just adapting to the digital age but is shaping the future of global business and finance.

Artificial Intelligence

The UAE has been at the forefront of embracing emerging technologies such as artificial intelligence (AI). As per the UAE National AI Strategy for 2031, the goal is to increase the digital economy’s contribution to the non-oil GDP from 11.7% to more than 20% in the next decade. The UAE’s National Artificial Intelligence Strategy 2031 targets establishing the UAE as a world leader in AI by 2031. It aims to create a cohesive AI system for key sectors in the country. With significant investments in AI research and development, the UAE is set to become a global hub for innovation and technology.

Contact Open Hub for Business Setup in UAE

Open Hub, operating under the prestigious umbrella of the BetterHomes Group, offers complete support for entrepreneurs and SMEs aiming to establish or expand their businesses within Dubai and beyond. We are a highly reputable and professional consultancy, dedicated to guiding both local and international entrepreneurs through the intricate process of company formation in the UAE.

With years of accumulated experience and an unmatched market understanding, Open Hub provides comprehensive A-Z solutions for company formation. Our commitment doesn’t end with the initial setup; we continue to support our client’s growth by offering a wide range of corporate services, reflecting our dedication to fostering a vibrant and thriving business ecosystem in the region. For further details, please contact us at:

Phone: +971 4 409 0994

Email: [email protected]