Forming a furniture trading business in Dubai can be promising and profitable. For foreign investors and aspiring entrepreneurs, the steady growth of this industry comes, in part, from the demands of the real estate industry. With an ever-growing business world, more and more investors require office spaces and homes. And in those homes, they’ll require furniture. And with such enormous events as the Dubai 2020 Expo, there will be no shortage of visitors to the region. So, if you’ve been planning to start and grow your furniture business or expand an existing one, this blog is for you!
To begin, it’s essential to understand that the furniture sector is an integral part of the UAE business market. Due to massive developments in tourism and businesses, there is a great need for furnishing. Therefore, this sector is predicted to continue its impressive growth. As a result, many investors are traveling to the region to form their furniture trading companies and take advantage of this need.
Why Start a Furniture Business in the UAE?
If you’re on the fence about forming your company, here are some fantastic reasons that investors and entrepreneurs are incorporating their business in the UAE:
• The growth of tourism and business-friendly regulations has brought more investors, which has caused a boom in the real estate industry. As a result of more and more office spaces and homes on the market, the need for furniture has also increased substantially.
• Rapid changes in lifestyle trends of UAE residents have created a higher demand for furniture businesses.
• Furniture businesses contribute heavily to the import and export sector.
• The UAE’s strong networking connections provide a wide array of opportunities for expansion.
• Large-scale tourist events, like the Dubai Expo 2020, are predicted to boost the growth of the furniture industry.
The Benefits of Starting a Furniture Business in the UAE
As one could imagine, there is a wide range of benefits for investors forming their furniture company in Dubai. These include:
• A growing market that’s quickly becoming an international business destination
• Affordable labor and a skilled workforce pool
• No minimum capital requirements
• Connectivity with other GCC countries allows for low import duties
• Multiple business zones such as the Mainland, Free Zones, Offshore, and more
• No corporate taxes
Things to Keep in Mind When Starting a Furniture Trading Business
1. Research Your Market
It’s necessary to be aware of your market, competition, and demand for your services or products. Market research can help you identify:
• If your products are likely to be in demand
• Your projected prices
• Your estimated retailer and customer purchase numbers
• Your annual sales income
• Your annual expenditures
2. Decide Your Niche and Target Audience
Depending on your particular business model, your business may have customers such as:
• Local, regional, and national furniture retailers- including professional internet traders
• Architects and interior designers who commission contract work on behalf of businesses such as hotel chains and restaurants
• Businesses requiring office furniture
• Public customers that directly buy from you as well as bespoke request services
• Local businesses that place orders for purpose-built furniture
3. Estimate Demand
You’ll need to assess if there will be enough demand for the types of furniture you intend to manufacture. For example, the furniture manufacturing sector in the UAE is comprised of a considerable amount of smaller companies, and you’ll need to discover where your products fit in the grand scheme.
4. Dictate Pricing
It’s also necessary to get the price right. You’ll always need to make sure that the gap between your expenses and your sale prices is adequate to meet all your running expenses, including new machinery and technology.
The most important aspect of starting a furniture business is understanding the market surrounding it. For some investors, this can seem like a daunting process. But you’re not alone! MSZ Consultancy is dedicated to helping entrepreneurs handle the ins and outs of conducting business in the UAE. From securing business licenses to handling important visa renewals, we do it all!
Are you looking for business formation in Dubai? Or are you needing the assistance of a Public Relations Officer? For new investors and established businesses alike, having expert consultants to help you navigate business is a fantastic way to push your company to the next level while freeing yourself to handle the most critical aspects of your business.
So, if you’re ready to start your new furniture company, we can help! Give us a call today at +971 52 544 1248 and let our talented team of business consultants help supercharge your business!
Frequently Asked Questions
Starting a furniture company is an extensive process! And during that process, you’ll undoubtedly come across a few questions. To help you make sense of conducting business in the UAE, we’ve put together some of our most frequently asked questions.
1. How do I start my furniture business?
There are several steps you’ll need to take to form a furniture business:
• Plan your shop, including what you plan to sell and the market surrounding it
• Register your furniture company’s business name
• Obtain the necessary licenses and permits
• Find an office or retail space
• Secure business insurance
• Establish a website to conduct online business
• Plan marketing and your initial business launch
2. Is a furniture business profitable?
Yes! The furniture market in the UAE is showing signs of continued growth, and with continued relaxed regulations, there’s never been a better time to form a company in the region.
3. How much does it cost to start a furniture business?
The cost of forming a furniture company will largely depend on the size of the store and the expense incurred due to inventory. Smaller operations can start for roughly $200,000, while larger companies could potentially see startup costs ranging in the millions.