Investors and entrepreneurs globally are concerned about a possible recession. That's no exception for Dubai investors. Ali Janoudi, Head of UBS Wealth Management for the Middle East, Turkey, and Africa cautions UAE investors to stay alert even as inflation, geopolitical risks, and volatility adds to the market's instability. However, the UAE seems to show positive strides in economic recovery following the COVID-19 pandemic. In a PWC 25th CEO survey report, 64 percent of Middle East CEOs stated they are confident that their businesses will achieve high revenue growth in 2022 thanks to the administration of vaccines, Dubai Expo 2020, and the oncoming World Cup in Qatar.
Overall, the economy proponents in the UAE, including the government, have taken measures to ensure that the country is the hub for growing successful businesses and providing endless employment opportunities for citizens and foreigners.
Even as rumors of a recession go around, running a business from the ground up that is insulated against the effects of a lousy economy is still possible. Most financial advisors recommend that investing is critical whether the economy is doing well or is in a downturn.
There are certain businesses anyone can start and operate successfully in Dubai without fear of losing revenue or profits due to a recession or pandemic-related crisis.
What Is a Recession-Proof Business?
A recession-proof business is a business that keeps doing well regardless of any economic downturns, recessions, or crises. While other companies and industries downsize their operations by laying off workers and cutting down overhead costs, a recession-proof business remains stable and continues to grow.
In the UAE, many businesses were forced to shut down due to the Covid crisis; however, those operating in the technology and industrial sector experienced minimal side effects. Generally, mainstay industries tend to thrive and provide job security, including healthcare, IT, education, and automotive maintenance.
Best Recession-Proof Business Ideas in Dubai
Below are some business ideas Dubai entrepreneurs can consider which can generate revenue growth regardless of how the economy is doing.
1. Healthcare
During the COVID-19 crisis, healthcare was among the industries whose demand rose sharply with people seeking medical treatment. Their workforce has also not been adversely affected; if anything, their services are critical during economic downturns. Healthcare continues to be a high-growth business in Dubai as it's essential to all.
Accounting and Financial Services
The UAE hosts thousands of businesses, and more will keep joining. Unfortunately, this creates a gap for accounting and financial services, which these businesses will rely on to make sense of the country's current business regulations and tax regimes. As a result, the future of accountants and financial experts will always be bright regardless of economic performance.
3. Food Delivery Services
Food delivery service is a tremendous recession-proof business in Dubai, with minimal upfront and operating costs. It also grew by popular demand in the UAE during the pandemic when people had to stay indoors and could not access restaurants and other eating outlets. An individual with the right mindset and skills can successfully run a food delivery or food truck business after obtaining a food delivery license in Dubai.
Automotive Repair and Maintenance
Businesses offering automotive repair services will always be in demand as most people need help to fix and maintain their cars and trucks. In addition, these kinds of businesses are immune to any economic crisis, as automobiles are vulnerable to wear and tear and need skilled care.
Tutoring
Tutors can find opportunities in the UAE for clients seeking professionals who can expertly teach academic and vocational subjects. An individual can even launch an online tutoring business starting with a computer and reliable internet from the comfort of their home. People will always want to access quality education in any economic situation.
Cleaning Services
Cleaning is also an in-demand service in most homes and offices. It is also easy to start with the right equipment and licensing. Commercial clients are a reliable market as managers want their staff to be productive by providing a clean and safe environment.
Set up a Recession-Proof Business
The good news is despite recessions causing devastating effects, not all businesses close down. In the face of robust governance, favorable business regulations, and visa support for professionals, Dubai and the UAE provide a rich ground for investors and entrepreneurs to grow. In addition, if entrepreneurs establish any of the above-listed business ideas, they are set for success even if there is a looming recession. The key takeaway is that businesses that do well during a downturn have low start-up and running costs and always have strong demand from clients.
Get in touch with Sentinel Business Centers to help you get started on opening and running a recession-proof business here in Dubai. We specialize in helping companies to transition smoothly from business setup, licensing, and operational efficiency.