The global supply chain continues to expand at an unprecedented rate – and the United Arab Emirates is at the heart of this growing global distribution system. For investors with enough available capital, building a fleet management business in Dubai can be a surefire way to see whopping returns and long-term success.
But while the UAE offers one of the best environments for entrepreneurship according to the Global Entrepreneurship Monitor’s 2022 Global Report, establishing a capital-intensive business always comes with its fair share of risks.
Here’s a quick-start guide to starting a fleet management business in Dubai.
The Industry Is Thriving – But the Competition Has Never Been Fiercer
If you are looking for a thriving market to base your fleet management company on, Dubai is certainly an option to consider. According to recent estimates, the MENA trucking market is expected to reach a whopping $ 6.57 million in 2022 and continue growing at a CAGR of 3.4% through 2027.
What’s more, the United Arab Emirates’ commercial vehicles market ranks among the largest in the entire Gulf Cooperation Council (GCC) area, and it’s valued at over $2 billion in 2022.
While the market undoubtedly presents opportunities, the competition is fiercer than ever. So, before diving into your project of launching a fleet management business in Dubai, it is important to gain market insights and choose the right niche.
Protect Your Business With a Comprehensive Insurance Policy
Fleet management enterprises can be extremely profitable and successful – but running a large business comes with significant liabilities. In the Emirates, car accidents represent the second major cause of death, accounting for 63% of deaths among children.
At the same time, road accidents involving your commercial vehicles can cause significant financial damage. For these and many more reasons, it is important to work with specialized car insurance providers such as InsuranceMarket.ae to find the right policy for your company and protect drivers, vehicles, and other road users.
Use Tech To Hone Your Competitive Edge
As the fleet management market becomes more crowded and competitive, it isn’t surprising that companies are racing to find ways to increase efficiency, maximize productivity, and reduce waste. And, all of this can only be achieved by introducing the right technologies.
When building your business in Dubai, incorporating the right fleet management software from the start can have endless benefits. An ad hoc system can automate internal operations, increase fleet safety, boost productivity, and help you make data-driven business decisions.
Costs Might Change Dramatically Over Time – Learn How To Manage Your Cash Flow
While fleet management businesses are likely to have a bright future ahead, there are several variables to account for. One of the most important ones is your overheads and cost of supplies.
For example, in the first seven months of 2022, the United Arab Emirates has already increased petrol prices five times, soaring new records. For logistics and fleet management companies, this translates into more expensive operations, shortages, and an inability to meet the customer demand for accessible and affordable goods.
If you are about to start your business in Dubai, make sure to look at how macroeconomic factors are likely to impact your operations and work with a specialized accountant.
Evaluate Your Performance and Focus on Improving Your Business
In such a fast-changing global economy, no business can remain still. Once you have established your new fleet management business in Dubai, it’s time to review your drivers’ performance and the industry trends to maintain your competitive edge.
Striving to continuously improve your business can help you keep up with the latest technologies, reduce waste, and streamline your operations.
Success Is All About Relationships
Starting a fleet management business in Dubai can seem like an overwhelming project. However, the city is known for its business excellence and highly qualified professionals – including business lawyers, marketers, sales experts, and customer service executives.
Make sure to surround yourself with the right management team and industry leaders, and rely on a robust network of suppliers and partners. Start by building valuable and personal connections at industry and networking events.