Creating business opportunities

Dubai: Mohammad Al Buraimi, a young emirati professional who has been doing a routine 7-to-3 job at Etisalat for years, one fine day decided to try out something new, creative - something that would help him break the monotony.

He did not have much money, but enough courage and spare time after office hours. His capital was his sheer love for his motherland - the UAE - and an enduring passion for the country's rich tradition and heritage.

In fact, that was his only capital for a possible business venture. But he did not know where and how to start a start-up business.

Then came the Global Village and the Dubai Shopping Festival (DSF) - which opened his eyes.

Al Buraimi set up a traditional coffee shop - Al Liwan Traditional Café - at the Global Village in 2007-08 investing about Dh70,000.

"We have a rich heritage, based on our traditional lifestyle and social values. Our traditional food, drinks and snacks are fast disappearing from our lives," Al Buraimi told Gulf News, while attending customers at his stall on a busy evening.

He and his employees serve a wide range of traditional drinks and dairy products - fresh milk with ginger, fresh milk with cashew nut, red tea with rose water - to name a few.

More than 25 types of traditional drinks are being offered at Al Liwan Traditional Café to customers - mostly Gulf Arab families, who stop by Al Buraimi's shop to sip a cup of any of the traditional drinks for Dh5 to Dh10. Not only these help one warm up in the chilly winter weather, these are good for health.

Al Buraimi is utilising into his family's experience and those of the elderly ones in the family for the recipes as well as improving the preparation of these drinks. "You can get the basic ingredients from the market, prepare the drink in a small kitchen and then serve," he says.

"There are a number of combinations that one could explore and offer. My plan is to expand the list of drinks by improvising and offering greater variety. These traditional drinks are prepared with either camel or goat milk."

Some of these energy-rich drinks have remained part of the lifestyle of the traditional Gulf Arab society and helped the Bedouin families to endure harsh climatic conditions year after year.

Although modern chemicals and additive-powered energy drinks are available in the market for Dh2 to Dh5, health experts say, natural and traditional drinks are sometimes better for health as they are fresh, natural and mostly chemical free.

"Many of those are becoming a thing of the past and the new generation of our society aren't aware of this. So, I thought why not promote some of these, as a business venture," Al Buraimi quips.

"With this, I can promote our rich culture and heritage as well as develop an alternative earning source. The DSF has provided the right platform for me."

The DSF and the Global Villages are two perfect platforms to launch start-up businesses. Not only do they guarantee a continuous stream of visitors and tourists that translates into higher sales volume but also take care of the initial investments and start-up capital. If carefully planned, one could easily recover the investment within the duration of these events.

Based on his experience last year, Al Buraimi decided to return to the Global Village this year as well.

"Last year I did not recover the investment fully. I lost some money. But I did not lose experience and the assets - the shop, materials and the processes in place," Al Buraimi says, with a smile.

"This year, I've invested Dh46,000 and already recovered the money. I'm looking forward to some profits. "On an average, my daily sales range between Dh1,300 and Dh1,400. However, it goes up significantly over the weekend when the crowd multiplies."

After the DSF, Al Buraimi plans to set up a permanent cafe for traditional drinks in Dubai and later set up branches all over the country.

This year, the Mohammad Bin Rashid Establishment for Small and Medium Enterprises - a Dubai Government entity dedicated to promote Emirati entrepreneurship, has lent support to 62 small and medium entrepreneurs (SME) to set up businesses at the DSF and Global Village.

Global Village provides low-cost space and allows SME members to promote and sell their products and enter the retail world.

Abdul Baset Al Janahi, CEO of the Mohammad Bin Rashid Establishment for Young Business Leaders, whose organisation had negotiated a deal with the Global Village to offer the stalls and kiosks at a discounted price, told Gulf News, "We have been supporting the SME sector during the DSF and at the Global Village for the last five years. The response is very good and we will continue and increase the participation of our members in the coming years."

There are a number of stalls run by Emirati businesswomen at the UAE pavilion, who are offering traditional products. Some are participating for the first time.

Kaltham Bekheit Joumaa, owner of Orked scarves, said in a statement, "This is the first time I have participated in the Global Village. My participation has increased my knowledge and given me the opportunity to meet with my SME colleagues. I would like visitors to come and look at what we have to offer."

Currently, there are 20 food stalls and 25 non-food stalls offering a variety of garments and accessories, perfumes, abayas, bicycles and fishing equipment for sale, apart from traditional handicrafts.

Al Buraimi says, "They helped me to secure the stall at a much lower rent. This has helped me to lower my costs significantly. This is a good support that they have lent. I'm sure all stalls supported by them, will make some profits at the Global Village."

Al Janahi, who was a project manager for the Global Village when it started as part of the DSF at a car parking lot on Dubai Creek in 1996, said, this project has helped many small shop owners become big businessmen.

"This is a great tool to try out businesses and for start-ups. Firstly, it offers a great platform, customers, tourists and guarantees good business. People with no business experiences tried their hands and I know of many people, who have become big businessmen," he said.

Big business leading the way

Dubai This year's Global Village hosts around 2,000 stalls within the pavilion. At an average rent of Dh15,000 per stall, the pavilion organisers will have generated Dh30 million in revenues from stalls only.

Sunil Bhatia, organiser of the Indian Pavilion, said, "We have over 300 stalls with rents ranging from Dh5,000 to Dh50,000 and more, depending on size and location.

"The participants are happy, although last year they made more money. This year, the situation is different. However, they will still make money and most of the participants have expressed their intention to return next year."

In 2008, 4.5 million people visited the Global Village. With an average spend of Dh100 per person, the total sale would have exceeded Dh450 million at the Global Village alone.

Badria Ali Mustafa, owner of the Gelato shop for Abaya, winner of the Shaikh Mohammad Bin Rashid Establishment for Young Business Leaders Award for 2008, said, "As an SME owner, I received a great discount from the Village. As a result, I rented two shops this year. This is the second year that I have participated and I look forward to participating long into the future."

According to Dubai Chamber of Commerce and Industry, more than 90 per cent of Dubai's 121,175 registered companies belong to the SME category that forms the backbone of the emirate's economic landscape.

Al Janahi said, "SME sector is a very important part of any economy. You cannot have an economy dominated by large conglomerates. Even they rely on SME suppliers and subcontractors."

"So we are nurturing them to increase their role in our economy. Mohammed Bin Rashid Establishment for Small and Medium Enterprises has 800 members who receive administrative and financial support."

Money matters Grab the chance

Making money might not be easy. However, the Dubai Shopping Festival (DSF) offers a good opportunity, and thousands of people have already changed their fortunes over the last 13 years. They started business through the DSF.

Small traders, even housewives can generate some extra money during these months, by planning ahead and doing homework. One has to collect information and do due diligence before going ahead.

Following are some tips:

- Seek information, through brochures, and by talking to organisers and participants with experience n Source some good traditional products from your home country

- Negotiate prices once you are satisfied with the products, quality and pricing

- Negotiate for a stall at Global Village or a street side kiosk

- Add freight, customs duty, logistics and operational costs. If you are taking loans/bank finances, then add the cost of funds to the list of cost factors

-Calculate costs and fix retail prices accordingly

- Take a realistic view of the demand of the product and the pricing if it will sell at that price If you are convinced, then place orders for goods and book a stall

- Possible business venues: Roadside kiosks, Global Village, Night Souq

Cost calculator

Rent of a stall: Dh10,000 to Dh25,000

Food outlets: Dh45,000 onwards, depending on the size and location

Salary of an attendant: Dh5,000 per month

Miscellaneous: Dh5,000

Do you think this will encourage entrepreneurship? Have you looked at setting up a stall in your spare time?

It's great boost to the tenderfoots. Along with this, be a hard worker and sincere throughout the career, new opportunitities will come to your way.
Jomay George
Dubai,UAE
Posted: February 08, 2009, 18:17

Thanks for the good report. They are useful for young businessmen.
Rajaram
Dubai,UAE
Posted: February 08, 2009, 14:42

I think Global Village is a very attractive package for new and small enterpreneurs. I would love to book a stall next year.
Haris Rais
Dubai,UAE
Posted: February 08, 2009, 12:41