The United Arab Emirates is making a strong mark in the thriving business world. The country is moving forward with technology and modern business strategies that help attract entrepreneurs and investors.
The UAE is the fourth-largest economy in the Middle East and North Africa, with a GDP of 545 billion USD in 2024. This suggests that entrepreneurs prefer the UAE over other countries.
Being one of the leading countries for trade & commerce, the UAE is transforming the business landscape with strategic locations, government support, ease of doing business, and more. The government is highly focused on the core sectors that have the potential to grow in the coming times.
Every industry is supported by government backing and offers some of the best business opportunities for investors and founders.
Let’s learn more about the emerging business sector in the UAE and why it’s booming.
Real Estate Industry
The Real Estate sector in the UAE is at its peak. As the country rolls out new projects, it is deeply focused on the sustained growth of the real estate industry. This industry has become one of the dynamic business sectors in the UAE.
As we know, the UAE reliably & consistently provides its citizens with a safe environment and entrepreneurs with a robust business ecosystem; consequently, demand for properties has increased across major cities. The real estate sector, encompassing malls, residential properties, and commercial spaces, plays a significant role in the UAE's economy.
The UAE is brimming with potential, as Dubai has seen another property price increase in 2024. The estimated average data for June 2024 is 21.3%, following 20.7% in apartments and 24.5% in villas. This continued development underscores the UAE's position as a global player in the real estate market.
Construction Industry
Following the real estate sector, the construction industry isn't left behind. There’s a natural alignment between these two sectors, making them mutually reinforcing. If the real estate sector grows, it's obvious that the construction sector will also thrive, becoming a significant contributor to the economy.
The UAE's construction sector remains one of the top sectors in terms of growth and expansion. The market is expected to grow at a CAGR of 4.26%, reaching USD 50.40 billion by 2029, up from its 2024 level of USD 41 billion.
The construction sector is booming due to extensive development projects, which include residential housing, commercial buildings, and other infrastructural projects. One of the primary reasons for the growth is the UAE's strategic vision, which drives smart city projects and sustainable development.
The UAE doesn't want to be dependent on the oil industry, which is why the government is heavily investing in this sector to make it a significant contributor to the economy.
Healthcare and Wellness Industry
There is no doubt that healthcare is one of the best performing business sectors in the UAE. The primary reason behind the increasing demand in this sector is the heightened health awareness that followed the COVID-19 pandemic.
People have become more aware of their health. From increased routine check-ups to gym subscriptions, the healthcare market is experiencing a surge.
The strain on the UAE healthcare sector is expected to result in an annual growth rate of 8 per cent, a significant increase from an estimated USD 33.5 billion as of 2024 to more than USD 50 billion by 2029. Due to its high standards of medical care and innovative facilities, the UAE is a leading destination for medical tourism worldwide.
Hospitality and Tourism Industry
No conversation about the UAE is complete without highlighting its thriving tourism sector. The UAE is first known as a tourist destination for Asia and the Middle East. The lavish lifestyle, rich culture, breathtaking beaches, and spectacular infrastructure attract people from around the world.
The UAE is a leading country for travel-related investments. The tourism industry in the UAE contributed around 12-15% to the country's GDP, amounting to approximately $ 65 billion. The vision of the UAE government is clear, as the country aims for sustainable development of its tourism industry under the 'Tourism Strategy for 2031.'
Renewable Energy Industry
The UAE is taking significant initiatives to promote renewable energy. The mission, launched a while ago, targets Net-Zero Emissions by 2050 and aims to invest in clean and renewable energy by that year. The country has also launched Blue Visa for the thought leaders, environmentalists, and scientists to contribute to this vision with depth and precision.
Growth in cleantech is strongly motivated by government strategy. The shift to renewable energy is being accelerated by the recently introduced National Hydrogen Strategy and the revised UAE Energy Strategy 2050.
The Final Word
Since the UAE is a business haven for every startup, the mentioned sectors are those with the most potential and possibilities in the coming years. The world is evolving day by day, and making the right decision at the right time is the key to success.
Here, Markai Corporate Services assists entrepreneurs in selecting the right business sector in line with current trends and supports them in establishing a venture in the global business hub. If you’re planning to enter the UAE business sector, get in touch with us today and thrive with confidence.
