Interesting facts:Virtually 60% of the Emirates’ GDP derive from foreign capital investments income. Full version
Business is a process, and like any other process, it goes through certain stages – from upsurge to decline. Seasonality of business and namely the periods of decline in business activity is a part of the natural economic cycle. During such declines, it is very important to react correctly to the situation and make decisions that will allow the company to go through the recession stage with minimum losses and maintain its efficiency.
How does the seasonality of business manifest itself in Dubai? According to the research of specialists from Robert Haf, the UAE, 93% of the most successful companies in the region report that in summer months there is a noticeable decline in the level of business activity. To understand the reasons behind it, it is worth remembering the events that occur annually. The most obvious reason for the annual recession in the summer period is probably the sacred month of Ramadan. Since Ramadan runs in summer, it is logical to assume that the seasonality of business in the UAE is determined by this national holiday. During this period of deceleration, it is essential to correctly dispose of time, for example, when planning and improving your business activity. Here it is important to remember the following: Ramadan takes place every year, and every year the business activity of a company is reinstated instantly after the period of slowing down. Also, summer in the UAE is a hot season; therefore, a significant number of employees and business owners are trying to leave the country at this period. At the same time, the number of visitors to the UAE is also noticeably falling.
Any non-seasonal business that is not directly related to changes in seasons and does not depend on natural cyclicality or temporary regular events (e.g., agriculture, or seasonal excursions) but is an “all-season business” should be prepared both regarding the financial and organizational attitude to the forthcoming recession. It is necessary to prepare the company for financial reduction: One should be cautious about the future and create reserves for the period of recession and any difficulties that may arise along the way.
A strong team is at the heart of any successful business. Sometimes the necessity of the team is overlooked in favor of more pressing issues, delivery times and sales goals. During the period of slowdowns, time should be spent on strengthening the internal structure of the company, preparation of plans and carrying out other kinds of work - you may not have the time for that in more active months.
The introduction of new technologies and innovations in business is a good way to strengthen it in difficult times. One of the things that can be done off-season is looking for innovative ideas and ways to move forward. Staff should be encouraged to offer new concepts and define goals.
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