Over the past few decades, Dubai has made significant strides in diversifying its economy, thanks to the proactive strategy of becoming a global hub for multiple industries. Foreign and local entrepreneurs have found a strong foothold in Dubai's growing economy. The Emirate's pro-business environment and relatively straightforward market entry regulations continue to make it an attractive place for innovative companies, but Dubai's biggest industries remain the top areas of growth and expansion.
E-Commerce Solutions
According to statistical predictions, the e-commerce market in Dubai will reach Dh12 billion of local GDP by 2023. Investors also expect it to grow over the next five years by 64.7%, making it one of the fastest-growing eCommerce markets in the MENA region and the world. This growth can be attributed to the increase in internet penetration, greater access to e-payment platforms, and the availability of compelling online shopping experiences.
Startups like The List, founded in 2016, are working to take the lead in Dubai's growing e-commerce market. The company has received funding of over $2.5 Million to help boost its upward trajectory. SMEs and entrepreneurs hoping to enter this industry find e-commerce attractive because of accessible licensing requirements and minimal required investment.
Real Estate
Dubai boasts a stable real estate market, making it very appealing to local and foreign investors. It is one of the most lucrative sectors among all top industries for growth in Dubai. The constant influx of expatriates relocating into Dubai helps bolster property markets, with about 70% of the population in Dubai consisting of foreigners.
The real estate boom in Dubai has contributed to the growth of numerous companies like Bayut.com, founded in 2009, offering property listings and classified search services. Back in 2016, Bayut received $20 million in investor funding, while newer startups like Nomad Homes are breaking through the noise with concierge-like services for renters and buyers, recently securing $4 million in funding.
Healthcare and Wellness
While the COVID-19 pandemic brought unprecedented challenges, it also opened up various avenues for innovative startups to offer solutions. The healthcare market in Dubai has seen a positive change, both in the public and private sectors, over the past few years. Most anticipate it to generate up to AED 39.4 billion by around 2025.
Digital tools to help patients find and book appointments have seen massive growth with startups like Okadoc and Meddy. These companies, backed by funding of $12.3 million and $2.5 million respectively, are primed for expansion, while Sehteq, a VC-backed online insurance provider, received $52 million in funding.
Construction Services
One of the most coveted sectors in Dubai is the construction industry. With some of the world's most impressive architectural landmarks, Dubai is synonymous with impressive city design. Dominated by local giants like Emaar and Damac, entering the construction industry in Dubai might be one of the less accessible markets, but support industries offering services to these giants is a worthwhile venture.
Mubadala-backed Modulus Tech provides 3D rendering solutions for construction projects. The company was founded in 2017 and recently received an award at the World Government Summit Demo Day.
Participating in Dubai's top growing industries offers entrepreneurs and SMEs unique opportunities to fast-track their projects. Networking events at Dubai Expo 2020 hope to foster relationships in the city's business community while business licensing and commercial office spaces provide fundamental support for new entrants in the market. Sentinel Business Centres offers SMEs and entrepreneurs professional business setup and fully furnished offices. We have tailored our services to help clients launch their businesses, navigating the necessary regulatory requirements in the UAE with ease. To learn more about our services and how we help Dubai-based startups, contact us today.