Why Should You Invest in a Warehouse Business in Fujairah?

Why Should You Invest in a Warehouse Business in Fujairah?

The transformation of the world into a global village has caused the import-export business to develop its niche of being the most profitable business. 

Furthermore, the trend of using high -end branded and foreign products in our everyday life has steadily increased, which is primarily because of the rising globalization of the world — making the UAE a hotspot for business setups .

When a company is in the process of formation, it needs multiple things to function correctly. Some of these things are a temporary requirement others are vital for its proper functionality.

 Warehouses are integral for business setups. Since, they are used to house raw materials, inventory, finished products etc.  And with businesses mushrooming everywhere in the UAE which has led to high demand for warehouses.

Thus, opening up new business opportunities for aspiring entrepreneurs and seasoned business owners to set up a business in the UAE. Particularly the warehouse business.

Why should you invest in a Warehouse?

Here are a few factors that make setting up a warehouse in Fujairah, a lucrative opportunity for entrepreneurs and business owners alike:

Low-Risk High Reward:

The best thing about starting a warehouse business in Fujairah is that it requires minimum capital. It is a prime example of low-risk high reward startups.

Even though they need minimal investment, but that does not mean the demand from them is not there. In fact, with the increase in company formation in the UAE, the need for them is on the rise.

The growth of the e-commerce sector has ramped up the demand for warehouses.

Versatility:

A warehouse merely needs a fenced area and a roof on top, and it is good to go. The versatility of a warehouse is astounding. It can be a storage space to store all the merchandise, WIPs or inventory. Or it can be transformed into an office space. The possibilities are endless when it comes to warehouses as they are infinitely flexible.

Need of Warehouses in Almost Every Business:

It is a well-known fact that warehouses are essential for every business. From food and beverage to import-export, textile, hospitality and retail, every sector need a warehouse. Therefore, building a warehouse business would prove to be lucrative for any business owner smart enough to invest.

Also: Six Things to Consider Before Starting a Warehouse in Fujairah

Better Return on Investment:

On average, a warehouse’s return on investment is eight to ten per cent. These numbers are stunning in every aspect.

Fujairah the best place for Warehouse Business:

The increase in the number of manufacturing, import-export and production businesses setting up in the UAE has indirectly raised the need for warehouses. 

Recognizing this need for warehouses, the government of Fujairah took several initiatives to fulfil this demand.

Below are four reasons that make Fujairah the best emirate of the UAE for starting a warehouse business.

Strategic Location: 

Fujairah’s location is a vital determining factor for investors who are looking for a suitable locale for establishing a warehouse. Furthermore, the port of Fujairah is connected to all six emirates of the UAE. And has access to the eastern seaboard. Thus, making international as well as local markets within easy access. The city is also near populous cities and towns. That gives it a striking strategic advantage over its competitors and make it a highly desirable location.

Infrastructure and Proximity To International Waters:

The UAE comes in third in the world due to its outstanding infrastructure.  The government of the UAE is enhancing Fujairah’s loading and off-loading capacity. Because of this, the movement of goods can be done quickly and in an orderly fashion.

Moreover, the UAE is building the world’s largest crude oil storage facility in Fujairah. This facility will be able to store fourteen million barrels! That will make it a global oil and trading hub. Besides that, the nearness to international waters promotes global trading. 

Manpower Readily Available:

For running a warehouse smoothly, an abundance of human resources is required. This workforce is mainly used to perform the various manual tasks such as operating a forklift or handling its security.

With the formation of the Fujairah Free Zone, there is never a shortage of dependable and skilled workforce.

Active Role of The Government:

The UAE government is continuing its tradition of creating an encouraging business environment by taking several initiatives. And it shows in the recently published rankings of The World Bank regarding the Ease of Doing Business. According to this report, the UAE ranks 11th for the year 2019. That is an immense improvement from the previous years rank.

Fujairah Free Zone Authority (FFZA) after observing the commendable success and growth of the warehouse industry has initiated a logistics park.

The logistics park will provide:

  • Requisite assistance to the companies needing help.
  • It will issue the necessary permissions, authorizations and consents. 
  • It will provide business licenses to the companies to establish warehousing and distribution facilities.
  • It will provide skilled and expert advice to those who are seeking it.
  • Finally, because of the fierce competition that Dubai Logistics City presents, it will offer competitive prices. Along with, softened terms of services.

To start a warehouse business in the UAE, now is the perfect time to do it.

We at Business Registration Dubai will assist you in every way possible. From securing a warehouse to hiring the workforce for maintaining it. Everything will be handled efficiently and professionally.

We also offer all types of business advisory services. For further assistance or queries, contact us today— we will be happy to help you!


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