8 Factors to Consider When Choosing a Business Location in the UAE

Setting up a new business is exciting, but selecting a perfect business location is vital. It can make or break a business. In the past, many companies have shut down due to poor location choices. The business location impacts a company’s net income and profitability. It is also critical to attracting the right talent pool and building long-term relations with customers, partners, and suppliers.

To identify the right location, you should weigh up the pros and cons of different regions. Here are eight factors to consider while choosing the right place to set up your business in the UAE.


1. Regional Demographics:

  • Study the demographics of each location you are considering, so you can choose the right place for your products or services.
  • Consider important demographic details, such as income level, age group, gender, race, ethnicity, education level, and more.
  • Based on your customer profile, choose a community whose population fits your target market.


2. Budget and Cost Considerations:

  • While choosing your business location, consider the setup cost, rental cost, and minimum capital required to start your company in the region. Depending on your budget, you can choose to set up your business on the mainland or in a free zone.
  • Know the taxes applicable in the region. Income and sales taxes vary from emirate to emirate.
  • Consider other location-explicit expenses, such as the expense of grants and vehicle permits.


3. Ease of Business Set-up Process:

  • You should choose a location that has streamlined procedures and reduced setup times required to start a company. Look at business hubs that offer a highly simplified and fast-tracked business setup process to get your company started in no time.


4. Accessibility, Logistics, and Infrastructure:

  • The business location should be highly accessible from all points so that your customers, employees, and suppliers can reach your establishment quickly and conveniently. Your facility should also be easily accessible to people with disabilities.
  • For importing and exporting businesses, proximity to seaports, airports, and major highways, excellent logistical networks, and ample warehousing spaces at lower costs are important considerations to ensure ease of shipping, tracking, and tracing, and timeliness of logistic services.
  • The area should have a modern and technologically advanced infrastructure to support all your business activities.


5. Level of Competition:

  • Select a location where the competition is less, and there are enough customers in the community to buy your products or services.
  • If you need a substantial market share, then you should locate your business where you are the primary supplier for that target market. Too many competitors selling the same product may hinder you from creating a large customer base.


6. Your Brand Image:

  • The location enables business owners to create and boost their company’s image and set it apart. Your business location should mirror the brand image that you need to project to your target market. 
  • Many business cities are associated with a certain sense of style or image. So, depending on whether you offer products or services to the high-end market or the middle-class, your location should be consistent with your brand.


7. Local Governance:

  • Be fully aware of governing laws or zoning restrictions in the area that may affect your business activity.
  • Check if the location offers any incentives, solutions, or packages that can help lower your business expenses.
  • Free zones are the best choice as they have easy-to-understand rules and diverse business solutions and services designed to support entrepreneurs.


8. Growth Opportunities:

  • You should choose a vibrant business location that offers current and future growth opportunities to your company.
  • If you aim for future growth, select an area that offers flexibility and room for expansion through good access to other markets.



Your business location can significantly influence the success of your company. That is why establishing your business in the right place is critical. Consider the above eight factors to help you make the right choice.

If you are looking to set up a new business in the UAE, consider Sharjah Media City (Shams) Free Zone as your company location. Shams Free Zone is one of the most cost-effective and business-friendly hubs in the UAE. It offers profitable solutions to investors, and therefore, it is an ideal place for setting up your company.

Call Shams authorities at 800 (Shams) 74267 to learn about the setup process or visit www.shams.ae for more information.


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