How to find distributors in Dubai and the UAE

Identifying the top retail chains in Dubai and the UAE where you can sell your products is relatively easy. Approaching and convincing them is a much bigger challenge.

It may be a better strategy to find a distributor first who can help you to get your products in smaller chains or individual stores, and then help you to get to the big names. Or to start online.

In this article you will find more information on the retail market and guidance on how to convince retailers and distributors to work with you.

Distributor

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.

Ease of doing business in the UAE

The United Arab Emirates’ economy is thriving and opportunities to do business in the country are many:

  • the UAE’s currency, the dirham, which is pegged to the US dollar, is secure and freely convertible;
  • here are no restrictions on profit transfer or capital repatriation;
  • import duties are low (less than 4 per cent for virtually all goods and zero for items imported for use in free zones);
  • labor costs are competitive;
  • federal corporate tax and personal taxes are nil and numerous double taxation agreements and bilateral investment treaties are in place. In addition, the financial risk is minimal.

These factors, combined with a strategic, accessible location for major regional markets, an excellent reliable infrastructure and an extremely pleasant, stable and safe working environment are key elements why Dubai and the other Emirates attract businesses.

Top-5 supermarkets in the UAE

Carrefour: A global retail brand, Carrefour has a strong presence in the UAE since its entry in 1995. It is known for offering a wide range of products including fresh groceries, electronics, clothing, and household essentials. Carrefour stands out for its commitment to sustainability and customer satisfaction, blending luxury and affordability in its shopping experience.

LuLu Hypermarket: Founded by Indian-born businessman Yusuff Ali M.A, LuLu Hypermarket is a key player in the UAE retail sector. With multiple hypermarkets, supermarkets, and department stores, LuLu offers quality goods from around the globe. Known for hosting cultural and festive events, LuLu Hypermarket is integral to the diverse community fabric of the UAE.

Spinneys: Established in the 1960s in the UAE, Spinneys is renowned for its selection of fresh produce, premium meats, gourmet products, and international brands. Spinneys is a leader in sustainability and community involvement, regularly supporting local agricultural projects and emphasizing eco-friendly initiatives.

Waitrose: A British supermarket chain, Waitrose has established its mark in the UAE market, offering a luxury shopping experience with a focus on quality and international products. They are committed to ethical sourcing and environmental sustainability, featuring a selection of Fairtrade items and eco-friendly packaging initiatives.

Union Coop: Established in 1982, Union Coop is known for serving both Emirati and expatriate communities through a vast network of outlets. They offer fresh produce, household essentials, and products from local and international brands. Union Coop is unique for its cooperative structure, reinvesting profits back into the community and supporting various charitable initiatives.

FMCG agents in Dubai

There is a number of FMCG agents active in Dubai with access to supermarket buyers. Please be aware that having an agent often included paying a commission. For small quantities this may seem favorable, but if you expect a larger market it may be cheaper in the long run to have someone working for you on a part-time basis for a monthly fee.

VAlidate the HS-codes you use for shipping

Almost every country or trade block in the world has its own detailing on the international HS-code list. With our report you strongly reduce the risk on misclassifications, delays and higher custom duties than expected. 

Tell us what you want to ship and where to and we ask you all relevant questions to get to the most likely code.

How to start? Distributors, retailers or online?

If you have a consumer product that you can’t sell directly from your home country to your end customer, you need at least one step in between. This can be a distributor (who also acts as wholesaler or importer), a big retailer directly, or it can be a large web shop. Let’s look at the pro’s and con’s of each option.

Distributors

  • Distributors are used to import, store and physically distribute a product.
  • They normally don’t invest in promoting your product to consumers.
  •  They are the best chance to get your product in the market so that you can gather sales data.

Large retailers

  • Retailers are very risk averse, may ask for a listing fee before  they put your product on the shelves.
  • They can help you promote your product in their stores and in their magazines, but will also ask a fee for this.
  • They are the quickest route to the mass market, if you can convince them.

Online

  • Specialised web shops may have a greater interest in your product than general web shops.
  • They can experiment more easily with pricing and ways of promoting.
  • Volumes may be lower, but working with web shops is still a good way to collect reviews and get brand awareness.

How to draft your distributor pitch?

You should put a lot of emphasis on drafting a good distributor pitch. Even if you already have great sales materials for your end-users, this often does not make clear what the benefits are for a potential agent, distributor or retailer to work with you. 

When you approach potential sales channels with your standard documentation, chances are high that they are holding of. If you make it crystal clear what are the benefits for them, like in the example presentation, you will get a much higher response rate.

Please note that it helps to put concrete data in your presentation. You may think it is sensitive, but just know the secret is in how you achieve the rotation or the low returns level, not in the data itself. So share it here, in order to get the right attention.

Key question of any distribution partner: how much will I earn?

Distributors are risk averse, they know the portfolio they have and tend to be happy with it. They can’t just add a product or service to their range, since it will cannibalize on others:

  • A retailer has to take another product from the shelf to make space.
  • A web shop only can push about 20 products on the home screen, the rest is in the ‘long tail’.
  • A wholesaler with representatives will only offer his retail clients a limited choice to increase the chances on a sales transaction. If they push your product, they need to stop pushing another one.

Finding distributors in other countries