The Arabic Emirates is the largest business centre of the Middle East, popular offshore jurisdiction and one of the most favourite holiday places for tourists from all around the world. That is why vending business is promising and fast developing in the UAE.
In addition to usual payment terminals, coffee, snacks, fresh drinks machines etc., you can find quite unusual vending machines in the UAE. For example, ‘Gold to go’ offers to buy gold bars with a weight up to 1 kilogram. The process of purchasing gold by means of this machine is very simple. You just choose the weight of a gold bar and pay for it.
Thanks to the well-developed infrastructure, there are sufficient places for vending machines installation in the UAE. There is a huge amount of business centres, hotels, banks, shopping and entertainment centres, educational institutions, large airports and hospitals thus the choice is wide enough.
The Advantages and Disadvantages of Vending Business in the UAE
Let’s start with advantages:
- Minimal staff. An engineer performing machines service, an accountant and a driver delivering goods will be sufficient;
- Round the clock operation. Vending machines will work at weekends and on holidays and you do not need to pay more for that as in a case with shop assistants;
- No human factor. A vending machine will not be bad-mannered with clients, give a wrong change, and have sick leave or vacation;
- Minimal space for trading. One vending machine takes only 1-1.5 м2. That means that the rent of space for it will be cheaper than a rent of a small shop;
- Absence of advertisement expanses. Doing a vending business in the UAE, you can forget about advertisement expenses. Vending machines located in a right area advertise themselves.
- The registry is not necessary. All the financial reporting is made by means of paying system installed inside a machine;
- Small start-up budget and fast pay-off period. You will need comparatively small amount of money to start if you do it with not large number of vending machines. At the same time, invested money will be compensated fast enough, depending on goods you sell and a place of location.
However, there are also disadvantages of vending machines business in the Emirates
- The risk of breakage. Even the most expensive vending machines (as every technique) can break down, bringing the business certain losses;
- The profit depends on location. Vending business success in United Arab Emirates mostly depends on how successful vending machines will be located;
- Continuous service requirement. Vending machines should be filled regularly and cleaned from time to time. That needs time and certain expenses;
- The most important characteristic is getting space for locating vending machines. All popular shopping centres are reserved for many months in advance, and it would be necessary to coordinate and discuss everything with shopping centres administration for a long time. Moreover, the price for space rent will be significant;
- Some of the shopping centres in the UAE do not deal with a subject of vending machines placed on its territory at all, or offer absolutely not so attractive places for it.
- Checked / Updated: 07.25.2022
- Published on: 08.27.2017
- Author: Elvira Savir
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