Seize opportunities in the UAE’s fast-growing sectors now

With the UAE emerging as a hotspot for investment, experts at a recent panel at Gulf News' The UAE Growth & Investment Forum emphasised that a deep understanding of the market, combined with a robust due diligence process, is vital for entrepreneurial success.

Moreover, the ability to navigate the fast-changing business landscape and regulatory changes is essential for seizing new opportunities.

Surge in entrepreneurship

“Recent changes, such as permitting 100 per cent ownership on the mainland and reducing company formation costs, have fueled a wave of entrepreneurs and start-ups in the UAE. We continue to see a steady influx of investors and business founders establishing operations here,” pointed out Hemant Katyal, Co-founder, Dhanguard Group.

Chrissi Zamora, Managing Director, Hawksford UAE, highlighted a range of initiatives shaping the nation’s investment landscape.

“Currently, most business sectors in the mainland and free zones allow for 100 per cent foreign ownership. Additionally, the introduction of long-term visas for investors represents a significant advancement in recent years,” explained Zamora.

“The diversification of the economy beyond oil, along with digital transformation, and the development of smart cities, is creating an environment that is highly conducive to long-term investments.”

Another panelist Rinshana Gafoor Shas, General Manager, Fast Business Center, spoke about the UAE’s supportive entrepreneurial ecosystem as a crucial driver of growth.

“Businesses can explore plenty of opportunities in sectors such as hospitality, e-commerce, infrastructure, technology, AI, and cryptocurrency. Entrepreneurs – whether they are start-ups, SMEs, or large-scale business owners – can grow here like nowhere else, thanks to the unique mix of support and benefits available. For anyone looking to start a business in the UAE, the potential for impact and growth is exceptional.”

Hot sectors for investment

While identifying the dynamic sectors for investment and guiding businesses on their growth path, the panelist emphasised several key areas.

“Small-scale businesses and SMEs have immense opportunities in niche consulting, leveraging personal expertise in areas like audit, lifestyle, and food consulting. The tech sector presents opportunities to develop innovative products from home or flexible workspaces,” said Katyal from Dhanguard Group.

Tech in demand

E-commerce sector is expanding beyond traditional platforms, allowing entrepreneurs to effectively market unique products.

“Cloud kitchens represent a lean start-up model, focusing on niche markets to avoid high cost,” Katyal said.

He noted that advancements in blockchain are enhancing secure data management and creating new investment opportunities for entrepreneurs. “The rapidly evolving AI sector is driving innovation and is also attracting substantial funding across industries."

Meanwhile, Pratik Rawal, Head of Corporate Structuring at Creative Zone, highlighted vacation rental homes as a lucrative investment opportunity.

Additionally, sectors such as health tech, property tech, and edutech present significant growth potential for businesses.

“We receive daily enquiries about sectors like health tech and prop tech. There’s substantial opportunity to build valuable intellectual property (IP) in these fields. I encourage a strong focus on technology investment, as it drives innovation and fosters growth. Creating something valuable not only paves the way for your business success but also attracts further investment and opportunities,” said Rawal.

Business opportunities in renewable energy

Zamora emphasised that aligning with The UAE Energy Strategy 2050 and advancing towards a sustainable future opens a wealth of opportunities in the clean energy sector.

“Government initiatives promoting hydrogen, wind and other clean energy options provide emerging businesses with opportunities to explore and invest in sustainable solutions,” she said.

How to grow a successful business

While there are robust investment opportunities across various sectors, panelists urged entrepreneurs to be mindful of business set-up processes and procedures to ensure smooth operations and sustained growth.

Rawal advised entrepreneurs to choose the jurisdiction carefully.

“Each emirate has unique benefits, so evaluate factors like team size, outsourcing versus in-house work, and overall capacity. These considerations are crucial in selecting the right jurisdiction,” he said, adding, “When scaling a business, consider your growth strategy. Selecting a specific location does not limit your potential for expansion.”

Fathima Salam, Head of Operations, Lawgical Group, highlighted the importance of having a clear business strategy and conducting thorough due diligence before launching a business to avoid future complications.

“When investors consider putting their hard-earned money into a business, it’s crucial for them to know their potential partners and understand where their investment is going. Product evaluation is also essential in this process.

“For entrepreneurs, protecting their unique concept is vital and they should refrain from sharing it publicly until absolutely necessary. Additionally, ensuring the financial stability of their investors is key, which underscores the critical role of due diligence,” Salam explained. 

She emphasised the necessity of having a legal panel on board to effectively tackle potential issues during the business set-up process.

Shas from Fast Business Center shared crucial advice before concluding the session, highlighting the importance of focusing on the return on investment (ROI), which is vital for both SMEs as well as large enterprises.

“Understanding the ROI is essential before starting any venture, as it helps make strategic decisions and ensures that resources are allocated effectively,” she explained.