The import and export industry is the most prevalent and lucrative to start. The use of branded and imported goods is on the rise, and people’s preferences are becoming more diverse as a result of increased globalisation, thus the import and export industry has become a crucial aspect of everyday life. This has given businesspeople and entrepreneurs throughout the world new investment options.
In addition, the establishment of a firm necessitates the use of warehouses to store finished items, work-in-progress (WIP), and raw materials, and the rise in commercial activity has increased the need for warehouse space. This UAE in movers and packers in fujairah as one of the best places to setup a warehouse business.
Why should you invest in a Warehouse?
The following list of factors makes opening a warehouse in the nation an extremely profitable prospect:
1. Less to No Risk
Although constructing a warehouse needs very little money, there is still a high demand for such real estate. It just needs a walled space and a roof on top, depending on the activity carried out in the warehouse. The need for these warehouses is rising as open areas are being used more and the e-commerce industry expands.
2. A versatile use of space
A warehouse offers a great deal of versatility and may be utilised for many different things. It is quite simple to transform into a storage area, and if necessary, into office space. Even the manufacturing base for the manufacture of numerous commodities might be located in a warehouse.
3. Varied use of Warehouses
Several industries, including the food and beverage, textile, and retail, as well as the industrial and manufacturing industries, need warehouses. Building a warehouse is a tremendously successful business decision because of its application in many different industries.
4. Better Return on Investment
The growth of the warehousing sector in the UAE has been aided by the rise in the number of businesses being established. There has been an increase in the usage of warehouses since all businesses—aside from those in the service sector—need them to store their finished items and work-in-progress. An average warehouse will offer a return of between 8% and 10%.
The UAE is located in a highly strategic location and serves as the junction of three distinct continents, namely Asia, Africa, and Europe, thus it makes sense that a rising number of industrial and manufacturing firms are registering themselves there. Let’s look at how the UAE emirate of Fujairah has developed into one of the greatest places to put up a warehouse.
Also read: How to set up an eCommerce business in UAE
Reasons for the booming warehouse industry in Fujairah
The following are some of the reasons why Fujairah is regarded as one of the greatest locations to establish a warehouse industry:
1. Strategic location
Fujairah’s location is a key determining element in whether or not it will be a good spot to build warehouses. UAE is situated on the way to many of the major commercial routes in the globe and is gradually becoming into the global logistical centre. The area is also close to important marketplaces and population centres.
2. Infrastructure in the nearby area
According to studies, the UAE is third in the world for infrastructure availability. The location is close to airports and seaports, making it simple to move products there. Modern infrastructure will enable the movement of commodities and products in a timely and systematic manner.
3. Availability of Workforce
A crew is necessary for warehouse maintenance. There will be a lot of tasks, forklift operators, and security staff needed. Depending on the sort of activity carried out in the free zone, these workers may be both educated and ignorant. There is an abundance of qualified and trustworthy labour force available due to the existence of free zones.
4. Government Intervention
The government is open to new businesses entering the nation. The UAE is ranked 11th for 2019 in the World Bank’s Ease of Doing Business report. The nation held the 21st spot the year before.
As a result of the expansion of the warehousing sector, the Fujairah Free Zone Authority (FFZA) has started construction on its very own logistics park. The purpose of this logistics park is to aid the numerous businesses that might need assistance with logistics. The several businesses that will be utilising the warehouse and distribution facilities will be given all the required licences and business licences by this logistic park. This logistics city will provide terms and conditions at a lower and more affordable rate as direct competition to the Dubai Logistics City.