Author: Mustafa Shaker, Sales Director, RAKEZ Published by: SME10X With Ramadan underway, millions of Muslims around the world are now abstaining from food and drink from dawn until dusk. It’s also a time for spiritual reflection, prayer, and spending time with family. During this month, billions of dollars are given to charity. For many outside the Muslim world, and indeed some who live here but are not Muslim, the question is often asked – does business grind to a halt? Certainly it’s true that business hours are often adjusted and you’ll see restaurants closed until the evening when people are breaking their fast, but while Ramadan is often perceived as a time when business slows down to a snail’s pace, this is in fact not the case. Work still happens, with investors and entrepreneurs as busy as ever in the UAE. So let’s look at what all this means for those living or thinking of visiting the UAE during the sacred month. It’s about adjusting, not stopping If we take the example of retail, we can see how what appears to be an apparent drop in activity is in fact just a change in consumer behaviour. In one study, it showed that while daytime e-commerce transactions accounted for 73% of total transactions during the rest of the year, this figure dropped to 64% during Ramadan. However, the usual figure of 27% of e-commerce activity occurring in the evenings rose to 36% during Ramadan. When you look at bricks and mortar stores as well as cafés and restaurants you will see a downturn during the day and a significant uptick during the evenings. This is the story UAE businesses are telling across the board, whether it’s transportation, hospitality or even gifting (given that this is a time when many people visit family in the evenings.) So it’s a shift rather than a hard stop. Startups and SMEs – a time to set up For entrepreneurs, startups, and SMEs the month of Ramadan does present a unique opportunity. There are some very attractive business setup packages on offer with notable discounts – what better time to take advantage and get your new business on its feet. So there are a number of affordable options being offered to entrepreneurs looking to establish a foothold in the UAE – lower setup costs and a quieter atmosphere combine to provide you with an opportunity to really focus on launching your business without the pressure of such a fast-paced environment. As long as you time it correctly (ie, not too close to Eid when many people travel abroad), you can also take advantage of cheaper flights and hotels during Ramadan and pick this time to visit the UAE to set up a business. You’ll also be able to benefit from discounts on office spaces, often at a fraction of the usual cost. There’s more good news in that many business incubators and accelerators offer special programs during Ramadan – so if you’re seeking mentorship, investment or even just networking opportunities, it’s worth looking out for Ramadan events. In short, this is the month to get your business up and running. A time for planning and getting a long-term view It is the case that many people are focused on spiritual reflection during the month of Ramadan, visiting the mosque as much as possible, as well as community-focused activities. But once you recalibrate to the adjusted working hours, and figure out the best time of day to get things done, when people are freshest, and also when things are more quiet. So during those quieter times – particularly late afternoon when many people who are fasting are tired having completed their day’s work and are resting before breaking their fast – you can take advantage and focus on planning. When you have fewer immediate tasks on your plate and a calendar not so packed with meetings, it can be a great moment to do a SWOT analysis of your company, spend time thinking about new possible growth opportunities, as well as looking at market trends. Whether it’s looking outward at the market, or inward at your business operations, by using this important time to reflect you can position your business for a more successful and sustainable future. This is why for many companies Ramadan is a period to initiate new ventures or kick-start projects. It’s not uncommon for businesses to plan for expansion, review potential investments or execute long-term strategies in this reflective and more focused environment. For investors, this is an ideal time to consider new markets and fine-tune their approach to dealing with future challenges. What slowdown? Contrary to the perception of a slowdown, the world of UAE business continues to grow, with the government continuing to offer support for organisations and investors. Many real estate analysts suggest that there is little slowdown in the market, partly because we are still in a period of post-Covid enthusiasm for life and business as normal. The same is true for tech and many other sectors which power on through Ramadan as normal. So the UAE operates year-round, with many investors selecting this time for their entry into the UAE market, ensuring that they are well-positioned and ready to go for the rest of the year. Needless to say, the reasons the UAE is such an attractive business environment are always in place – easy business set up, world-leading ease of doing business, along with tax incentives. Ramadan – understanding cultural dynamics For international investors unfamiliar with the cultural aspects of Ramadan, it’s important to recognise the significance of the month and how it influences business operations. While working hours may be adjusted, and many employees may take breaks for prayer and fasting, businesses continue to run. It’s also a time when companies offer special promotions, host events, and focus on giving back to the community through charity. This philanthropic aspect should serve as good inspiration for all businesses to consider how they can give back. But it’s important to be respectful and do a little research so you don’t offend the sensibilities of those who are observing the month. It’s not difficult to do, and it will go a long way to help strengthen business relationships and expand your network. So it’s a balance of being respectful of local traditions while also being aware of the opportunities the month presents. Business as usual, just with a twist The misconception that Ramadan brings business activity to a halt in the UAE couldn’t be further from the truth. Whether you are a new entrepreneur or a seasoned investor this month is an excellent time to make decisions, plan for the long term, and even set up a business in the UAE. With a slower pace during some parts of the day allowing for reflection, and special discounted packages to attract entrepreneurs, Ramadan is a great moment to expand your business presence in the UAE.
Author: Mustafa Shaker, Sales Director, RAKEZ Published by: SME10X
With Ramadan underway, millions of Muslims around the world are now abstaining from food and drink from dawn until dusk. It’s also a time for spiritual reflection, prayer, and spending time with family. During this month, billions of dollars are given to charity.
For many outside the Muslim world, and indeed some who live here but are not Muslim, the question is often asked – does business grind to a halt?
Certainly it’s true that business hours are often adjusted and you’ll see restaurants closed until the evening when people are breaking their fast, but while Ramadan is often perceived as a time when business slows down to a snail’s pace, this is in fact not the case. Work still happens, with investors and entrepreneurs as busy as ever in the UAE.
So let’s look at what all this means for those living or thinking of visiting the UAE during the sacred month.
If we take the example of retail, we can see how what appears to be an apparent drop in activity is in fact just a change in consumer behaviour. In one study, it showed that while daytime e-commerce transactions accounted for 73% of total transactions during the rest of the year, this figure dropped to 64% during Ramadan. However, the usual figure of 27% of e-commerce activity occurring in the evenings rose to 36% during Ramadan. When you look at bricks and mortar stores as well as cafés and restaurants you will see a downturn during the day and a significant uptick during the evenings.
This is the story UAE businesses are telling across the board, whether it’s transportation, hospitality or even gifting (given that this is a time when many people visit family in the evenings.) So it’s a shift rather than a hard stop.
For entrepreneurs, startups, and SMEs the month of Ramadan does present a unique opportunity. There are some very attractive business setup packages on offer with notable discounts – what better time to take advantage and get your new business on its feet.
So there are a number of affordable options being offered to entrepreneurs looking to establish a foothold in the UAE – lower setup costs and a quieter atmosphere combine to provide you with an opportunity to really focus on launching your business without the pressure of such a fast-paced environment.
As long as you time it correctly (ie, not too close to Eid when many people travel abroad), you can also take advantage of cheaper flights and hotels during Ramadan and pick this time to visit the UAE to set up a business. You’ll also be able to benefit from discounts on office spaces, often at a fraction of the usual cost.
There’s more good news in that many business incubators and accelerators offer special programs during Ramadan – so if you’re seeking mentorship, investment or even just networking opportunities, it’s worth looking out for Ramadan events.
In short, this is the month to get your business up and running.
It is the case that many people are focused on spiritual reflection during the month of Ramadan, visiting the mosque as much as possible, as well as community-focused activities. But once you recalibrate to the adjusted working hours, and figure out the best time of day to get things done, when people are freshest, and also when things are more quiet.
So during those quieter times – particularly late afternoon when many people who are fasting are tired having completed their day’s work and are resting before breaking their fast – you can take advantage and focus on planning. When you have fewer immediate tasks on your plate and a calendar not so packed with meetings, it can be a great moment to do a SWOT analysis of your company, spend time thinking about new possible growth opportunities, as well as looking at market trends. Whether it’s looking outward at the market, or inward at your business operations, by using this important time to reflect you can position your business for a more successful and sustainable future.
This is why for many companies Ramadan is a period to initiate new ventures or kick-start projects. It’s not uncommon for businesses to plan for expansion, review potential investments or execute long-term strategies in this reflective and more focused environment. For investors, this is an ideal time to consider new markets and fine-tune their approach to dealing with future challenges.
Contrary to the perception of a slowdown, the world of UAE business continues to grow, with the government continuing to offer support for organisations and investors. Many real estate analysts suggest that there is little slowdown in the market, partly because we are still in a period of post-Covid enthusiasm for life and business as normal. The same is true for tech and many other sectors which power on through Ramadan as normal.
So the UAE operates year-round, with many investors selecting this time for their entry into the UAE market, ensuring that they are well-positioned and ready to go for the rest of the year. Needless to say, the reasons the UAE is such an attractive business environment are always in place – easy business set up, world-leading ease of doing business, along with tax incentives.
For international investors unfamiliar with the cultural aspects of Ramadan, it’s important to recognise the significance of the month and how it influences business operations. While working hours may be adjusted, and many employees may take breaks for prayer and fasting, businesses continue to run. It’s also a time when companies offer special promotions, host events, and focus on giving back to the community through charity. This philanthropic aspect should serve as good inspiration for all businesses to consider how they can give back.
But it’s important to be respectful and do a little research so you don’t offend the sensibilities of those who are observing the month. It’s not difficult to do, and it will go a long way to help strengthen business relationships and expand your network. So it’s a balance of being respectful of local traditions while also being aware of the opportunities the month presents.
The misconception that Ramadan brings business activity to a halt in the UAE couldn’t be further from the truth. Whether you are a new entrepreneur or a seasoned investor this month is an excellent time to make decisions, plan for the long term, and even set up a business in the UAE.
With a slower pace during some parts of the day allowing for reflection, and special discounted packages to attract entrepreneurs, Ramadan is a great moment to expand your business presence in the UAE.
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