Zoho Plans To Invest AED 100 million for expansion in UAE

Zoho Plans To Invest AED 100 million for expansion in UAE

Highlights

• Zoho has announced an AED 100 million investment to expand its operations in the United Arab Emirates (UAE).
• Zoho expanded by 45% in the UAE, the second-fastest growing nation, in 2022.
• The country has increased ten times with a 60% 5-year CAGR for the enterprise.

On January 31, 2022, Zoho, the Indian software development company, announced an investment of AED 100 million (approximately USD 27 million) for expansion in the United Arab Emirates. On the fringes of Zoholics Dubai, Zoho’s annual user conference, CEO and co-founder Sridhar Vembu announced that the company had multiplied its presence in the United Arab Emirates, where it maintains its Middle East and Africa headquarters, by ten during the past five years, achieving a compound annual growth rate of sixty per cent.

In 2022, Zoho experienced growth of 45% in the UAE, the country with the second-highest growth rate in the world. The company’s workforce, nationally and across the MEA, has increased by more than twice as much in the last year. In comparison, the nation’s partner network grew by 50% in 2022.

Vembu explained that the company’s transnational localism approach involves “giving back to the local community and being anchored in the local culture as we grow” whenever it enters a new territory. To tailor our solutions for the local market, we have spent the past five years in local hiring, expanding our partner network, including Arabic support in our products, and connecting with local payment gateways.”

“We will continue investing in growing our presence across the country through hiring, training programmes, localizing products, integrating our solutions with local vendors, and collaborating with organizations that assist local businesses with their digitization aspirations.”

Zoho has formed strategic alliances with entities like the Department of Economic and Tourism (DET) and Dubai Culture to increase business access to enterprise technology. It has partnered with several academic institutions, such as the Emirates Academy of Hotel Management (EAHM) and the Manipal Academy of Higher Education, to offer continuing education courses (MAHE).

To make its cloud solutions more accessible to over 3500 SMBs through various agreements, Zoho has invested Dhs20m in wallet credits since 2020. In addition, it invested Dhs4.5 million in programmes to educate digital literacy 200 pupils and more than 300 enterprises.

“As a result of the current state of the world economy, an increasing number of businesses are embracing digitalization and opting for unified platforms that enable them to break down data silos and produce real-time contextual insights that empower them to act quickly and adapt to shifting market conditions. With our apps being customizable, integrable, and extendable, we provide a unified platform for all business needs, from customer experience and marketing to finance and enterprise collaboration. Because of this, Vembu continued, Zoho is an excellent option for companies of all sizes.

Here are some details about the announcement:

New Office in Dubai: Zoho plans to set up a new office in Dubai, which will serve as its Middle East headquarters. The office will be located in Dubai Internet City, a technology park home to many leading technology companies.

Hiring local talent: Zoho plans to hire local talent in the UAE to support its expansion efforts. The company has set a goal of hiring 1,000 people in the country over the next three years. This will include both technical and non-technical roles.

Focus on SMBs: Zoho’s UAE expansion will focus on serving small and medium-sized businesses (SMBs) in the region. The company plans to provide its suite of business software products to SMBs, which includes CRM, accounting, HR, and other business applications.

Partnership with UAE government: Zoho has announced a partnership with the UAE government to support the country’s digital transformation efforts. The partnership will focus on providing training and support to small businesses and promoting entrepreneurship and innovation in the region.

Long-term investment: Zoho’s investment in the UAE is a long-term commitment to the region. The company plans to expand its operations and services in the UAE over the next several years to become a leading technology provider.

Zoho’s investment in the UAE is a significant step in its global expansion efforts. The company’s focus on serving SMBs and partnering with the government to support digital transformation is a testament to its commitment to helping businesses succeed in a rapidly changing digital landscape.

Motive Behind Investment

There are several reasons why Zoho may have made this investment:

Growing Market: The UAE is a rapidly growing market with a strong economy and a growing demand for technology solutions. Zoho can tap into this market by investing in the UAE and expanding its regional customer base.

Strategic Location: The UAE is located in a strategic location, with easy access to other parts of the Middle East, Europe, and Asia. This makes it an attractive location for businesses looking to expand their operations and reach a global audience.

Supportive Government Policies: The UAE government has actively promoted entrepreneurship and innovation and created a favourable business environment for technology companies. Zoho may have been attracted to the UAE due to the supportive policies and initiatives of the government.

Talent Pool: The UAE has a large pool of talented and skilled professionals, including engineers, software developers, and business experts. By investing in the UAE, Zoho can tap into this talent pool and recruit top talent to help grow its regional operations.

Overall, the AED 100 million investment by Zoho in the UAE is likely a strategic move to tap into the growing market, leverage supportive government policies, and access the talented workforce in the region.

Way Forward

Zoho has been operating in the UAE for over a decade and currently has over 45,000 customers in the region. The company provides various software solutions, including customer relationship management, finance, human resources, and marketing tools.

In addition to its expansion plans in the UAE, Zoho has also announced its intention to increase its global footprint. The company plans to expand into new markets in Europe and Asia and aims to achieve $1 billion in revenue by 2025.

Zoho’s dedication to growth and optimism about the software industry’s future are all on display in the company’s decision to invest in the United Arab Emirates. With a focus on customer happiness and innovation, Zoho is in a solid position to meet its challenging objectives and remain a market leader.

Edited by Prakriti Arora