Top Factors to Consider in 2022 to Choose The Right Business Location in UAE


New entrepreneurs often find the process of business set-up as an exciting experience. However, only a few of them realise that selecting the right location is the most crucial part of business setup in Dubai. Getting the right location may make your business while choosing the wrong one may break it. Many businesses have bit the dust due to the wrong choice of location rendering the business either illegal or creating operational problems. In most cases, the right location plays a significant role in determining the identity of your business.

The location helps you to reach your target customers and it also has an impact on a company’s net income and profitability. Selecting the right business location is critical for attracting the right talent pool and building long-term relations with customers, partners, and suppliers. Identifying the right location is not an easy process as you would be required to weigh in on the pros and cons of each place. Hiring experienced professionals such as business set up consultants in Dubai is recommended to navigate this challenge. Meanwhile, here is a list of factors you must consider while choosing the right place to set up your business in the UAE.

1. Regional Demographics 

Research the demographics of each location on your list before finalising one. You can consider critical demographic details including income level, age group, gender, race, ethnicity, education level, and more. Based on the business activities and customer profile, you can choose a community that fits your profile. If you are targeting European customers, areas such as Downtown, Marina, Business Bay would be ideal. If you are targeting communities from the Indian subcontinent, places such as Bur Dubai, Karama, and Deira can be considered.

2. Budget and Cost Considerations 

The cost of business setup in Dubai is a huge factor that determines the location of your company. It means you must consider incorporation costs, rental costs and minimum capital requirements etc. before zeroing in on one location. You can either choose a free zone or a mainland location to establish a company. If you are selecting a free zone, the cost of facilities and rent of office space may go higher.

3. Ease of Business Setup Process 

If you want to start immediately without any lengthy procedure, try to locate your business in any free zones. Free zones provide all services under one roof and have their regulations so that licenses can be obtained in a few days. Business setup consultants in Dubai can help you obtain a trade license faster.

4. Accessibility, Logistics, and Infrastructure 

While choosing a location for your business in Dubai, ensure it is easily accessible from all points so that your customers, employees, and suppliers can reach your office quickly and conveniently. If import, export or re-exports are your priority, the company must be near seaports, airports, and major highways. Locations Near the metro with ample parking spaces should also be given priority.

5. Level of Competition 

Startups may flounder in the beginning, if the competition is too high. Try to find a location where you can be the primary supplier and can expand later once the business grows. Operating among companies that sell the same products may hinder you from building a large customer base or winning a substantial market share.

6. Brand Image of the Business

Choose a location that mirrors and helps to boost your company’s brand image. Your location and brand image should go hand in hand. A clothing shop selling high-end products should be located in a place that reflects its posh image. Similarly, a brand that caters to the middle class should select a location that mirrors its values.  Get help from business setup consultants in Dubai if you are unable to find a location that is consistent with your brand image.

7. Growth Opportunities 

Your location should support your aspirations and ambitions. Set up your business in a location that promises ample growth opportunities for your company.

8. Regional Legislations

When you select a location in Dubai, you need to check the legislation and trade restrictions about that area. If you rent an office in a free zone area, you will come under the regulations of that particular free zone authority. Setting up a business in a Dubai free zone area will not allow you to carry out trade outside of its limits. If you choose the free zone area without realising the law, it would be a disaster for your business.

Seek the Advice of the Best Business Setup Consultants in Dubai 

Your business location can significantly influence the success of your company. That is why establishing your business in the right place is critical. Consider the factors mentioned in this blog to make the right choice. If you are looking to set up a new business in Dubai, consider seeking the advice of business set up consultants in Dubai such as Jitendra Business Consultants (JBC). JBC can guide you on cost-effective and business-friendly locations in Dubai. Our highly qualified company formation experts can help you select an ideal place for setting up your company in Dubai.

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