It is often said that the relocation business in the UAE is one of the few that is completely immune from the boom-bust economic cycles. When the economy is booming, expats move in droves. You can notice the surge by the increased presence of relocation company trailers from all over the world. And what happens when the economy is down and money’s tight? They move internally or internationally, and they need to use relocation companies again!
Around 400 moving companies help the UAE’s heavily transient expats ship their belongings back home – or on to another new life abroad. The benefits of starting a moving company include low barriers to entry and constant demand. If you have a truck, the proper insurance, a registered office and working muscles, you can be in business. If you have international aspirations, it’s a bit more complex, but with the right network, it’s also achievable.
Narrow Your Niche and Create a Plan
You should select a specific niche in the industry rather than offer to do everything under the sun. Determine if you’d rather focus on international corporate moves, large residential clients, or quick residential moves that require only a couple of workers and a small truck. A big company that’s moving its headquarters probably isn’t hiring the same moving company as a recent graduate moving out of university housing and into an apartment. It’s important to understand which niches are most profitable and which are dominated by established players.
Once you’ve selected your niche, you will need to create a plan on how to target your audience. How do people look for relocation companies when moving? Which expat organisations can help you target clients? What are some of the requirements to become a vetted relocation company for major corporate clients? These, amongst other questions, will require detailed answers depending on the niche that you have selected.
Relocation Business Reputation
Relocation firms tend to start getting busy in December when many expats start to arrive or head off. Then, from April until August, as school years and work contracts end, relocation business work at a feverish pitch.
Remember that reputation is everything when it comes to clients trusting you with their most valuable belongings. Unfortunately, a series of less than reputable relocation firms have shaken consumer confidence in Dubai, and hence, clients put a huge emphasis on positive reviews and good word of mouth recommendations. You will need to develop a proactive strategy to highlight great customer service.
A good way to distinguish yourself amongst the hundreds of moving firms on the market is accreditation. Reputable relocation businesses are members of FIDI (Fédération Internationale des Déménageurs Internationaux; The Federation of International Movers). FIDI programme requires that movers have a periodic assessment of their moving activities through an independent audit.
Where to Incorporate Your Relocation Company?
While it’s possible to incorporate a free zone relocation company, it is not a very practical option. There are several limitations that come with a free zone status that would limit your ability to operate within the UAE. The few companies that operate from free zones are mostly relocation brokers instead of full-fledged relocation firms. Most relocation companies are registered as local limited liability companies through the Dubai Department of Economic Development (DED).
To get your local license, you will need an Emirati national as a partner as well as a physical site for your business. You can opt to have a retail facing business or get a warehouse with an office. If you plan to have a small fleet of vehicles, you’ll have to factor in space for parking and maintenance. If your budget is tight, you can pool your resources with other moving firms to share resources.
We have helped a variety of both local and international relocation business set up in Dubai. Our consultants can provide you with critical advice that is vital to a successful launch. A free no obligation consultation can turn your dream into a reality. What are you waiting for?
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