Shared Hosting Tips in UAE

AEserver is a website hosting and domain registrar based in the Middle East, with its main client base located in UAE. In addition, it also serves surrounding GCC countries: Bahrain, Kuwait, Oman, Qatar, and Saudi Arabia. It is the #1 privately owned ccTLD .ae registrar and the largest hosting provider in the UAE.
To understand the ins and outs of the shared hosting market in the UAE, we met with Munir Badr, the founder, and CEO of AEserver. Munir established AEserver in his room back in 2005, and since then the company has gone a long way, making a name for itself. Let’s take a look at what he had to say.

A Glimpse Into UAE Digital Landscape

The UAE has a population of 9.6 million people, 90% of which are people who’ve moved to the country. A staggering 99% of people have access to the internet, making UAE an exceptionally well-connected country. In the country, the .AE domain name is the most popular one, with ~220,000 .AE domain names. And it is also the largest domain name in the Arab world, not only UAE.

Customers Prefer to Stay Local

In the UAE, domain prices are on average higher than in other places. But according to Munir, this doesn’t stop the people from purchasing the domains. “Local people prefer using local domains. .AE is a very popular domain, used by companies and the government.” The reasons behind this vary. Some prefer the .AE domain because it’s available, while others prefer to have local services as they feel safer and more confident when dealing with local entities. And this is one of the competitive advantages of AEserver when competing with the influx of international hosting providers: except for the tools, customers like that the company offers them the help of local account managers ready to assist them at all times.

Local Support Helps to Bring in Clients

It’s hard to overestimate the importance of customer support but turns out, it’s not only a way to ensure a great experience for your existing customers, but also a way to attract new ones! Munir mentions that one reason people choose local hosting providers is local support. In case of any problems or questions, people don’t want to call outside of UAE but want to quickly talk to someone local. For this reason, many companies that already have websites hosted outside want to move them to the UAE.

Website Localisation Ensures Better Customer Experience

Product localisation in the case of the UAE is a bit tricky because of the writing system: Arabic is written right to left. It’s made easy by the fact that English is the semi-official language of business. The majority of the population speaks English, and they prefer to do business in English. Munir mentioned that many websites are available only in two languages, Arabic and English, and if businesses decide to go with only one language, they choose English rather than Arabic. Although the local population knows English, AEserver offers 24/7 Arabic support for a more comfortable experience.

Website Builders in UAE: Yes or No?

In the UAE, many companies use website builders instead of turning to developers or agencies to create a website for them. “Website builders are a very powerful tool for any modern business. I believe the popularity of website builders is growing because there are lots of site builders out there that invest heavily in online advertising. They are reaching customers online on YouTube, Facebook, and other social channels, trying to convey the idea that anyone can just go online and create a website from scratch, without any technical skills. This idea creates a lot of hype around website builders, and people are keen to try it to see for themselves.”
Additionally, website builders can serve as a tool to encourage customers to renew their domains and start using them. It gives hosting providers opportunities to upsell.

Website Import Feature Transforms Web Creation

Website import is a technology that’s already seeing usage in the UAE, mentions Munir. “I think it’s a cool technology. It does serve a purpose, and solves one of the biggest challenges of website builder day-to-day users.” According to him, companies are often locked into a particular render and cannot export the website. Website import comes in handy when they want to change the website provider. “We’ve seen competitors use it. I’ve also tried it myself. I’ve tried Site.pro, and I think it has great potential.”

“One Size Fits All” Doesn’t Work in the Shared Hosting Business

It’s important to understand that all businesses react differently to pricing policies and plan changes. What worked for one, even a very similar project, may not bring such great results for your brand. What you need to do is test, test, and test to find what works for you. Conduct small tests every day/every week, and carefully analyse the results. For example, Munir and his team in UAE, after different campaigns, have found that selling hosting cheaper than the cost price in expectation of long-term profit doesn’t work for them, as free deals generate mostly free users. At the same time, the cost-price sales approach has generated good interest, bringing in income.

Give Bigger Value to Customers

Instead of offering just one service, maximise the value you give to your customers. One way to do this is through web hosting package bundles. For AEserver, giving away domain names with web hosting worked well, especially since domain names are costly in UAE. People have seen bigger value included in this package: hosting, a domain name, a website builder, and just went for it.
“We at AEserver always call up the clients when they are warm or hot to understand what they are looking to achieve with their newly purchased hosting service. We then use this information to make tailored packages for them. We then reach out to them a few months later with a custom offer. Some clients appreciate it and go with the offer, while others already know what they are looking for.”

Final Thoughts

Wrapping up this insightful interview, we can see that there is huge potential in this region. The number of businesses grows, and with it, the amount of data at your disposal. Located in the center of the world, 8 hours away from all the major business centers, it’s a very convenient place to do business. So, if you are thinking of starting a hosting or other business in the UAE, Munir has one message for you: “Nothing is impossible in Dubai!”