19 08 2020

How seasonality affects business in the UAE?


In all economic spheres, we have seen ups and downs, and business is no exception. Such a phenomenon as seasonality is a completely understandable and expected process for which it is important to prepare well and survive it in the most optimal way. Business seasonality can be called a period in which business activity is lower than in other periods. You can use this period for various purposes, for example, control the accounting department, optimize business processes, test new strategies, and much more. Seasonality should not be avoided; it should be exploited and turned into an advantage for the company.

In the United Arab Emirates, a special research was conducted on the topic of seasonality, which showed that more than 93% of businesses experience a cyclical downturn in business activity in the summer. This phenomenon can be explained very simply, in the summer there is a national holiday of Ramadan. During this period business activity dropped noticeably. There are also other factors, such as very hot weather when employees and entrepreneurs travel outside the UAE, and the influx of tourists during this period is also decreasing. As a result, we get at least three factors that appear every year and significantly affect the economy. It should be understood that after the period of Ramadan, activity also begins to grow rapidly. This is quite logical. Therefore, in this case, you can calculate the specific timing of the recession period, how to prepare for it in the way that the consequences will not have a negative impact on the company's activities as a whole, but on the contrary, with renewed vigor, the company will conquer new business heights.

Ways to Prepare for the Seasonal Downturn in Dubai:

- One of the easiest ways to survive the summer season is to have an “airbag” that accumulates during the ascent, then you will definitely insure your business not only against seasonality, but also against events that cannot be predicted in advance. You should be as careful as possible about big spending and manage your finances wisely. If you see and understand that not all financial aspects can be covered personally, you should hire professional specialists who will carefully monitor the financial flow in the company, form and optimize them. A lot of businesses overlook financial gaps, because they do not appear in a short period of time. We suggest to prepare for possible difficulties in advance.

- During the upswing period, the number of sales, the issue of team strengthening and the optimization of interaction processes are often overlooked. The reason is simple, there is not enough time. Attention and energy are put into processes such as achieving sales targets, improving service and delivery times. Therefore, we recommend to use the recession period to strengthening and optimizing the teams, because the team is the heart of any company. Form a strong and reliable team that will help the company achieve incredible heights.

 - And the final aspect that should be paid attention to in a "bad" season is the study and implementation of new technologies. It is important to reward the team for new ideas to optimize and improve business processes. Timely use of innovations will allow you to profitably pass the recession and leave the competition behind. Explore, test, and implement.