Gross profit margin (gross profit as a percentage of revenue) varies widely by industry. UAE trading businesses typically operate on 15–30% gross margins; services businesses commonly achieve 50–70%. Understanding your gross margin is essential for pricing decisions: if your gross margin is 25% and your fixed costs are AED 200,000 per month, you need AED 800,000 in monthly revenue to break even. UAE banks and investors always look at gross margin trends when assessing a business — consistent improvement signals operational leverage; deterioration signals pricing or cost pressure.
See also: Cost of Goods Sold (COGS), Profit and Loss Statement (P&L), Net Profit
