What is the general profit margin for re-export trade in the UAE?
Solved#Entrepot trade#
I plan to engage in re-export trade in the UAE and would like to understand the potential profit margin for this business. Some friends are doing well in re-export trade in other regions, so I’m also interested in the UAE. I wonder how much the profit margins vary for different products, such as common items like electronics and textiles. Can anyone with relevant experience share insights?
Professional consultant answers
Andrew HuangYears of service：7Customer Rating：5.0
Supply chain optimization expertConsult
The profit margin for re-export trade in the UAE is not fixed and varies significantly across products.
For electronics, popular and fast-updating products like new smartphones may yield higher profits, around 20% - 50%. The UAE, as a trade hub in the Middle East, has strong demand for electronics and a high acceptance of new technologies. However, for regular electronic products, competition is fierce, and profits may range from 10% - 20%.
Textiles generally yield profits of 15% - 30%. There is consistent demand for various textiles, especially specialty clothing. That said, profits are influenced by multiple factors, such as procurement costs, logistics expenses, local market competition, and exchange rate fluctuations. If you can precisely manage each and optimize costs, the profit margin can be more substantial.
Amanda YangYears of service：3Customer Rating：5.0
Cost control consultantConsult
For re-export trade in the UAE, building materials typically yield profits of 10% - 25%. There are many infrastructure projects here, creating steady demand for building materials, but there are also many suppliers, hence this profit range.
Joseph ZhouYears of service：10Customer Rating：5.0
Senior foreign trade managerConsult
Profit margins for toy re-export trade usually range from 15% - 35%. UAE households have high demand for toys, especially during holidays, but be mindful of safety standards and other regulations.
Elizabeth LiYears of service：3Customer Rating：5.0
Compliance and risk managerConsult
Re-exporting plastic products to the UAE generally yields profits of 12% - 28%. Daily-use plastic products are in high demand locally, but competition is also intense.
William YangYears of service：5Customer Rating：5.0
International logistics consultantConsult
Furniture re-export trade in the UAE yields profits of around 18% - 35%. The local real estate development drives continuous demand for furniture, but transportation and other costs must be well managed.
Sarah ZhangYears of service：8Customer Rating：5.0
Document expertConsult
Profit margins for food re-export trade are harder to determine, typically ranging from 10% - 40%. Specialty foods may yield higher profits, but food import standards are strict.
James LiuYears of service：10Customer Rating：5.0
Foreign trade tax refund consultantConsult
Re-exporting lighting products to the UAE yields profits of 15% - 30%. There is strong demand for lighting locally, but competition is also fierce.
Michelle ChenYears of service：3Customer Rating：5.0
Business coordination consultantConsult
Profit margins for handicraft re-export range from 20% - 45%. The UAE has high demand for specialty handicrafts, and profits can be good if you cater to market preferences.
David LiYears of service：6Customer Rating：5.0
Senior customs declaration consultantConsult
Hardware product re-export trade yields profits of 12% - 25%. There is demand for hardware in UAE industries and daily maintenance, but competition is also high.