Market entry strategy for exports to Dubai and the Emirates

If Dubai and the Emirates is a relatively unknown market for you, you need a clear market entry strategy. This may be different from the strategies you have used so far, as the market structure and the competition is different.

Key in your market entry strategy is some market research. Of course there are reports on market size and market growth, but often these are general. Specific knowledge on how your product is perceived and what your competitions is, is harder to get but more valuable.

Oppportunities for international business in Dubai and the Emirates

The United Arab Emirates (UAE), a federation of seven emirates in the Arabian Peninsula, has a population of about 9.9 million as of 2023. It is known for its oil wealth, futuristic architecture, and international business hubs.

The UAE’s economy, with a GDP per capita of around $43,000 USD in 2023, is highly diversified. Although oil and gas remain significant, sectors like finance, tourism, real estate, and aviation play major roles. Dubai and Abu Dhabi are key drivers of economic growth.

Major cities include Dubai, known for its modern architecture and vibrant business environment; Abu Dhabi, the capital and a cultural and economic center; Sharjah, recognized for its cultural contributions; and Al Ain, known for its universities and gardens.

Five ways into a market

Your entry model decides your cost, your speed and how much control you keep: sell directly from home, work with an agent, appoint a distributor or importer, sell online, or open a local office.

Control and investment move together. Direct and online selling are cheap to start and easy to stop. A local office gives full control, but needs staff, registration and often a local company.

Most companies start light, prove that there is demand, and only then invest.

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Entering the market in Dubai and the Emirates in three steps

Step 1

Validate the demand

Check market size, competitors and price levels, then speak with five to ten potential buyers. Their reaction tells you more than a general market report.

Step 2

Choose channel and price

Pick the entry model that fits your margin and your capacity, and calculate your landed cost: transport, duties, VAT and the margin the channel will take.

Step 3

Pilot, then scale

Start in one region or with one partner, agree what success looks like after six to twelve months, and expand the country plan only on those results.