The United Arab Emirates is a major hub for investment, living, and travel in the MENA region. In particular, both Dubai and Abu Dhabi have a huge demand for the food and beverage (F&B) industry. You can start a food business in Dubai to tantalize the taste buds of the Emirati nationals, expatriates, and tourists.
The booming food & beverages sector of Dubai provides numerous business opportunities. For example, food manufacturing, restaurants, food packaging, grocery stores, food catering, cafés, and food truck businesses, etc. Investors must understand the specific working mechanism of the F&B vertical to avoid potential issues.
Understand the essential business requirements of the food-service market of the UAE. Let’s dive deeper to discuss the nitty-gritty of the way you can serve the foodies in the UAE. Ultimately, you can launch a successful company in Dubai who provides the perfect delicacies to the food lovers.
As one of the fastest-growing economies in the Gulf region, the UAE is attracting loads of foreigners. However, the booming corporate growth of Abu Dhabi, Dubai, Sharjah, and Ajman has a downside — a busy lifestyle. So, there is a great scope for entering into the food-service segment in the UAE.
Key takeaways of the UAE food and beverages sector
These are the notable insights from the food and beverages vertical of Dubai, UAE.
- Eco-friendly and sustainable food packaging solutions are very popular in Dubai.
- People are embracing healthier options like organic meals in street foods throughout Dubai.
- Creating innovative menus through fusion cuisine, by blending different culinary traditions is gaining traction in Dubai.
- Themed food trucks attract right kind of audience in Dubai.
- Once, you grow mainstream from street food, online ordering systems and digital payment options are your partners.
- Conduct market research to critically assess the eating preferences of people in Dubai.
- Analyze the offerings of your competitors to your target market.
- You need to seek all business license and essential regulatory approvals.
- Also, you have to strictly follow the Dubai Municipality’s food safety regulations.
- Carefully budget your street food setup, all permits, and other operational costs.
- Choose your vendors, equipment, cooks, and other staff with great attention.
- Trump tariffs on USA imports are alluring foreign food producers like Indians to shift operations to the UAE.
Process to open a food company in Dubai
Serving flavorful food is only one aspect of incorporating a food corner in Dubai. You must have the complete knowledge of the complexities in setting up a food-service business. Do thorough market research to analyze the demand of the items you will sell at your drive-through food-place in Dubai.
Come up with a proper business plan for a food place in Dubai to get successful. Once, it is done, next you have to register your food-service setup in Dubai. You have to follow this step-by-step procedure that requires legal documentation and patience.
- Finalize business structure
- Choose trade name
- Obtain initial approval
- Find accessible food premises
- Prepare legal paperwork
- Acquire license and permits
Now, we look upon these steps for opening a food business in Dubai.
Finalize business structure
Selecting an appropriate business structure for your food setup in Dubai is crucial. Decide between forming an LLC, partnership, or sole proprietorship. Picking a suitable corporate entity is just like laying the foundation of food place.
Choose trade name
Coming up with a right trade name for your Dubai food business is one of the key steps. Because, it helps you in attracting more customers to your prospective food setup. Therefore, make sure your company name is distinctive, pertinent, and compliant with the UAE laws.
Obtain initial approval
Submit your application to the Department of Economic Development (DED) to get your NOC. Draft and notarize the Memorandum of Association (MOA). Prepare and notarize the Articles of Association (AOA), if applicable in your case.
Find accessible food premises
You need a decent location to operate your food venture in Dubai. Get prior authorization from the Dubai Municipality (DM) for your food point. Definitely, choose a suitable place that aligns with your delicacies and the clientele.
Prepare legal paperwork
Draft all these necessary legal documents to fulfill regulatory requirements.
- Copies of the owners’ and partners’ passports
- A business plan outlining the idea, finances, and target market
- Trade name registration certificate
- MOA and AOA
- Health and safety certifications
- Rent/lease agreement of the food place
- A sponsor’s NOC, if applicable
Acquire license and permits
Complete documentation that you require to finalize the registration — trade license, and food safety permit. Submit all the legal documents to the DED and other relevant authorities. Pay license dues and other necessary fee, and start operations once you receive regulators’ approval.
Considerations for registering a food setup in Dubai
The diverse food culture of the UAE presents a lot of competition. It is crucial to understand the market and competition to start a food business in Dubai. However, a unique fine-dining concept and taking care of these considerations can make a name for yourself.
- Conduct thorough market research
- Explore diverse food business opportunities
- Craft fool-proof business plan
Here we take a brief look at these deliberations.
Conduct thorough market research
Carrying out market research is the first step, for identifying the foodies’ needs and preferences. This information helps you to create a unique selling proposition that differentiates your food offerings from the competitors. You can appeal to your target audience by grasping their best eating demands.
Explore diverse food business opportunities
Dubai offers various food business prospects including restaurants, cafes, food trucks, catering, food delivery, etc. Keep in mind, each opportunity has its own advantages, and comes with several challenges. So, it is essential to choose one that aligns with your skills, experience, and resources.
Craft fool-proof business plan
A well-written business plan is crucial for the success of your food business in Dubai. It must outline the business objectives, target market, financial projections, operational mechanism, and marketing strategy. A comprehensive business plan helps you to stay focused, make informed decisions, and attract investors.
Calculate business start-up cost
Main types of food business licenses in Dubai
The UAE offers various kinds of professional licenses for food-services companies. Business owners have to obtain the necessary permits and product registrations to comply with Dubai Municipality regulations. A food business in Dubai can think about acquiring these licenses to ensure quality and safety.
- Food manufacturing license
- Trade license for food
- Homemade food license
- Food safety permit
- Health certificate
- Insurance certificate
- Other licenses and permits
Next, we briefly look upon these classifications of food business licenses in Dubai.
Food manufacturing license
Starting a food manufacturing business in the UAE is a lucrative venture and can grow over time. To comply with the UAE’s food code, businesses must buy or lease a physical premises. Also, hire at least 10 workers, and have a minimum startup capital of AED 250,000 for eligibility of the license.
Trade license for food
Venturing into the Dubai’s food business sector requires a trade license from Department of Economic Development (DED) for commercial activities. Food companies must obtain initial approval from DED in the form of an NOC before applying for the trade license. Trade license is the most common and easy licensing requirement to fulfill for food business investors in the UAE.
Homemade food license
Register as a trader on the FoodWatch platform to obtain a home food license in Dubai. Ensure your home business meets compliance guidelines and facility requirements. This includes obtaining a valid license from the DED and listing your food items on the platform.
You must have permission for safe sourcing, transportation, storage, preparation, and display of food, aligning with the Dubai Food Code. Provide your contact details and submit an inspection report on the Inspection section of the Dubai Municipality. For overseeing food events or managing supplies, get prior approval from the Food Permit section of the Dubai Municipality. Remember, this permit is valid for just one year, and requires annual renewal.
Food safety permit
The food safety permit is a crucial document for ensuring nutrition health in the UAE. Food businesses in Dubai can acquire it from the Food and Safety Department of the Dubai Municipality (DM). Similarly, food companies in Abu Dhabi can obtain it from the Abu Dhabi Agriculture and Food Safety Authority. Acquiring this license is challenging due to its association with the health and safety concerns.
Health certificate
Food vendors must get a health certificate from a licensed medical facility in Dubai. This certificate confirms their medical fitness to handle and serve the food.
Insurance certificate
Dubai food vendors must have liability insurance, which covers possible losses or damages that their business may face.
Other licenses and permits
Food consignment release license and vehicle permit for transporting food products are essential for UAE food businesses. Optionally, a liquor license is necessary if the restaurant plans to serve alcohol. Pork permit is obligatory for the foreign origin food businesses who use the meat of pig in dishes.
Major kinds of food businesses in Dubai
With over 20,000 establishments, food-service providers can differentiate themselves and attract more customers through various business models.
Let’s briefly discuss these kinds of food businesses in Dubai.
Restaurant
A restaurant is a traditional food business that serves meals and drinks to customers, offering a sit-down dining experience. With a passion for cooking, you can choose between providing casual or fine dining options. Also, your restaurant classification depends on your target audience, menu offering, and budget.
Café
A cafeteria is a low-end restaurant that specializes in providing coffee, tea, and light meals. With a cozy atmosphere, a café delivers a comfortable seating arrangement. Extra amenities like free Wi-Fi make a cafeteria an ideal choice for business leaders and the working class.
Mobile Food Business
A mobile food business moves between locations to provide delicacies to the customers. It is a good option for catering to events, festivals, markets, roads, and tourist attractions. Food trucks and carts offer a short menu focusing on specific dishes and are popular among foodies on the go.
Bakery
A bakery is a food business that specializes in baked items offering fresh and delicious options to customers. For instance, bread, cakes, pizza, burgers, sandwiches, pastries, desserts, etc. Bakeries can operate independently or as part of cafeterias or restaurants.
Food Catering
As a lucrative food-service business, a catering facility provides meals and beverages on events and social gatherings. For instance, celebrations, weddings, parties, corporate get-together, conferences, symposiums, happenings, reunions, homecomings, etc. Food catering services require excellent culinary skills and attention-to-detail, and can operate from a commercial, mobile, or cloud kitchen.
Calculate business start-up cost
Top locations for successful food spots in Dubai
Picking up a right location has key importance, while beginning an in-demand food spot in Dubai. However, single out a place that is appropriate for the kind of foods you want to sell. Some of the best areas to open food corners in Dubai include the following.
- Jumeirah Beach: This is perfect location in Dubai if you plan of opening a temporary casual dining spot or a food truck.
- Dubai Marina: This is a perfect location for high end roadside food kiosks in Dubai.
- City Walk: It is a captivating destination in Dubai attracting foreign tourists and local Emirati foodies alike.
- Downtown Dubai: This is an ideal location for your premium street food business in Dubai.
- La Mer: It is beachfront location in Dubai where you can install different kind of food stalls.
Benefits of launching your food venture in Dubai
The UAE offers numerous opportunities for food entrepreneurs, including a diverse food culture that caters to everyone’s taste buds. Dubai’s mix-culture cuisine ranges from traditional Arabic dishes to
international delicacies. These advantages of the Dubai’s food market allows investors to create unique experiences to stand out from the competitors.
- Booming economy
- Favorable business environment
- Ideal location
- Growing tourism hub
- Tax incentives
- Suitable infrastructure
Moving forward, we discuss the perks of venturing into the Dubai’s food vertical.
Booming economy
Everyone is familiar with the strong and rapidly growing economy of the UAE. Marvel of Dubai offers access to a large and affluent Emirati and expat customer base. Thus, it has become an ideal place for beginning and growing a food business.
Favorable business environment
The UAE government is fostering a highly inclusive business culture. Especially, Dubai supports the small and medium-sized enterprises (SMEs) with tax exemptions, reduced rental rates, and funding opportunities. Dubai provides various business support services like mentorship, networking, and training programs.
Ideal location
Setting up a food corner in Dubai is crucial due to its strong travel potential and business presence. Dubai attracts many foodies, making it a perfect location for a restaurant business. Researching the best place involves deciding whether to establish a food spot in the mainland or a free zone.
Growing tourism hub
Popular attractions of Dubai draw millions of tourists annually thanks to the growing appeal. This provides food entrepreneurs an opportunity to showcase their culinary skills. They get the prospect of serving new customers with the delicious meals and sizzling dishes.
Tax incentives
Entering the food vertical in a foreign country can get challenging due to legalities and taxation requirements. The UAE offers various tax perks in the free trade zones like 100% tax exemption from the income tax. Whereas, a 9% corporate tax rate in Dubai mainland helps food startups save money and manage their business effectively.
Suitable infrastructure
Dubai government is providing right corporate environment to the foreign investors. They are getting easy access to the world-class infrastructure and amenities. For instance, business parks, office spaces, warehousing, transportation, connectivity, utilities, etc.
Regulatory compliance rules for the UAE food businesses
The UAE government entities make and coordinate the food and beverage regulations. They require strict adherence to the food code, halal certifications, import and export regulations, and food fraud prevention. UAE’s food code ensures comprehensive food safety regulations, covering licensing, hygiene, storage, handling, traceability, and labeling for all F&B establishments.
Halal regulations mandate strict sourcing, processing, and preparation of food products for the Muslim population in Dubai. Import and export regulations enforce safety standards, including inspections, permits, and certificates. The use of DNA testing and spectroscopy helps prevent fraud and protect consumers across the UAE.
Ways of starting a street food corner business in Dubai
The UAE is a lively country that is full of vibrant cultures, which are thriving together. So, the need for quick, tasty, and diverse food options is growing among both Emirati nationals and expats. You can open a street food corner business in Dubai to serve the delicious meals to locals and foreign travelers.
More and more foreigners are coming to the United Arab Emirates thanks to its greater economic potential. Dubai, Abu Dhabi, and Sharjah have become full of the emigrants availing rewarding financial opportunities. Ajman, Fujairah, Ras Al Khaimah, and Umm Al Quwain are embracing the expatriates as well.
Many of these foreigners in the UAE are part of the working class and labor force. Also, the sightseeing places of the UAE attract loads of tourists every year. The majority of these people seek affordable eateries to fulfill their dining needs.
A blend of different cultures means the UAE has a diverse cuisine to present to everyone. The UAE covers everything from traditional Arabic dishes to continental meals to the fast foods. Thus, covering every food taste is a spectacle that the UAE is brilliantly pulling off.
Newbie investors want to make the most of their financial investments in the UAE. Presently, launching a business in Dubai to serve roadside food is a lucrative venture for them. This is a thorough guide to assist you to successfully set up a street food point in Dubai.
Kinds of street food point setups in Dubai to pursue
Entrepreneurs can open a street food corner in Dubai from these kinds.
- Food trailers and trucks: The incredibly adaptable food trucks in Dubai are popular for enabling movement between various locations.
- Roadside pop-up restaurants: These temporary eateries are ideal in busy locations of Dubai.
- Food market stalls: These are perfect for seasonal sales in Dubai’s street food markets.
- Deliver-only street cloud kitchens: These are the roadside adaptation of the cloud kitchens in Dubai for the street food delivery and pickup.
- Food kiosks: These temporary kiosks provide a small selection of menu items in shopping malls, business centers, and entertainment venues.
Perks of opening a roadside street food shop in Dubai
These are the advantages of forming the roadside street food points in Dubai.
- The global tourist attraction Dubai is home to beautiful beach, eye-captivating skyscrapers, splendid buildings, trendy malls, and multi-cultural cuisine.
- If you consider setting up a street food corner business in Dubai, its tourism sector ensures steady customer base.
- Street food spots require quite less capital, in comparison to the regular restaurants in Dubai.
- You have access to tourists, expatriate residents, and local Emirati nationals.
- The government of Dubai takes initiative in supporting and promoting the food entrepreneurship.
- In case, you have a mobile food setup, it is even more beneficial, as you can serve high traffic areas.
Calculate business start-up cost
Setting up a food truck business in Dubai
The UAE is gaining worldwide recognition for its fantastic food experience. It offers an exhilarating gastronomic experience that is not just limited to its seven-star luxurious restaurants. Also, its quaint cafes, and most notably many food trucks that are lining the streets are serving people there.
F&B industry of Dubai, including food trucks/carts is showcasing an upward trend of growth. This rising demand is due to the huge influx of tourists that are coming to the UAE round the year. Gradually, it has become the culinary hub of the Middle East, with international food chains opening their franchises in Dubai.
In recent years, food trucks in Dubai are gaining popularity, thus driving the demand for food truck licenses in Dubai. There are endless possibilities which cuisines you can sell from food trucks, or what theme the food truck can display. Usually, food carts/trucks around the world sell local meals.
As the land of expatriates, the food trucks in Dubai are seen selling the international street foods. For example, Indian Chai, Chinese Dumplings, Italian Pizza/Meatballs/Spaghetti, Mexican Tamales, Turkish Kebabs, Korean Fried Chicken, Japanese Takoyaki, etc. Moreover, positioning food trucks with maximum visibility and easy access enables maximum foot traffic.
Setting up a food truck business in the UAE demands lesser capital, in comparison to opening a restaurant there. Either, you can lease a food truck, or you can purchase your own food truck. Plus, the rent of a food truck is more inexpensive, versus renting a place for a restaurant. Therefore, the return on investment (ROI) in the case of food trucks is also a lot quicker.
Licensing mechanism for food trucks in Dubai
The most of the mechanism a food truck business in Dubai is same like registering a restaurant. However, you need some extra approvals for this purpose. Let us list these additional permissions.
Here, we look into these extra approvals for the food trucks in Dubai.
Preliminary approval from DED
Take initial permission from the Dubai Economic Department (DED) for you food truck setup. For acquiring this approval, you have to submit a comprehensive business plan to the DED. The business plan must define the following aspects.
- Idea: Describing the thought behind this business venture, its objectives, short-term, long-term goals, etc.
- Financial plan: How do you plan on raising funds needed for the business. Where will you get the required capital?
- Concept: What kind of food will you be serving? What will be the theme of the food truck?
- Business model: What type of business model you will be using?
The business plan must include a list of your immediate competitors and ways to face them. Also, it must suggest add-ons that add value to your business. The financial plan must consist of these elements.
- A thorough funding strategy: Whether gathering funds from investors or self-investment
- Risks: Hardships associated with the business and the methods to reduce the impact
- Viability: Convincing the authorities your idea of a food truck is well-thought-out and is profitable
Approval from Dubai Municipality
Get the permission from Dubai Municipality (DM) for assembling, movement, and parking of food trucks.
Safety approval from HACCP
The relevant authorities must approve both the food truck, and the kitchen in it for safety and hygiene. Certified food trucks help strengthen your brand’s credibility as it guarantees your commitment to providing safe food. You have obligation to get two certifications from Hazard Analysis Critical Control Point (HACCP) for these purposes.
- Layout for the food truck: This involves the overall design of your kitchen. The kitchen setup, The food storage system, the cooking area, and the cooking system, the waste disposal system, the cooking system, etc. should be approved.
- Design of the food truck: This includes the entire plan of the food truck, besides the kitchen—other aspects like the provision for electricity, specs of the truck, safety measures, hygiene conditions of the entire truck, etc.
It demonstrates your earnestness towards eradicating different hazards from your food truck by using effective tactics. Also, it ensures the highest safety, and the maintenance of the hygiene standards. Permit from the Roads and Transport Authority (RTA) is necessary for business branding on the food truck.
Tips for promoting food businesses in Dubai
These are some tactics that can make or break your food business in Dubai are as follows.
- Menu development: Create a captivating menu that aligns with the customers’ demands in Dubai.
- Customer engagement: If your customer service is not good, then you will not survive in this business. So, think about offering food promotions and loyalty programs.
- Quality control: It is one of key elements to make your food business successful. Hence, take great care of hygiene and follow food safety protocols.
- Branding and marketing: Build a strong brand that fulfills the needs of the foodies across Dubai.
Summary of the food licensing registration rundown
- Choose a company name for the food setup as per the UAE regulations.
- Select the trade name for the food company in Dubai.
- Decide the legal structure according to the best corporate practices.
- Get the initial NOC from the Department of Economic Development (DED).
- Notarize the Memorandum of Association (MOA).
- Draft the Articles of Association (AOA), if applicable.
- Fetch the food manufacturing license, if you are going to prepare the meals.
- Acquire the trade license for the Dubai food business from the DED.
- Make the blueprint of your food facility’s interior design layout.
- Obtain the food safety permit from the Dubai Municipality’s Food and Safety Department.
- Take other essential permits for food packaging, food delivery, food consignment release, etc.
- Submit all legal documents to the relevant authorities.
- Pay the licensing fee and the regulatory permit dues.
- Start the operations after the regulators’ approvals.
Calculate business start-up cost
Conclusion
The UAE offers lucrative opportunities for the food and beverage companies. Particularly, Dubai is ensuring a smooth transition into the highly rewarding F&B industry. Dubai is a leading player in the food sector and provides numerous business opportunities to the investors.
You can begin a food business in Dubai to serve the bon vivant. However, it is essential to understand and meet numerous requirements to avoid potential issues. Reading our guide can make you a successful food business owner in Dubai.
KWS Middle East simplifies the procedure by offering comprehensive services for seamless registration and approvals. We aim to provide a hassle-less and legally compliant business setup in Dubai. Connect with us anytime for establishing a trending food business venture right now.
Opening a food corner in Dubai can seem hectic, as you have to consider a lot of things. Nevertheless, things become easy, once you step foot on the path. Professional consultants like KWS ME make your registration procedure smooth.
FAQs about starting a food business in Dubai
These are the frequently asked questions regarding a food company in Dubai, UAE.
Do I need a license to sell homemade food in Dubai?
Homemade food businesses in Dubai must obtain a business license. Also, a home-run food business must ensure hygienic food preparation standards. Cooks and other staff must maintain compliance with the cleanliness practices as per the UAE regulatory authorities.
Is it profitable to open a restaurant in Dubai?
The food industry of the UAE is highly rewarding for the business owners. So, you can make a good profit by launching a restaurant in Dubai. Increasing foreign travelers and expatriates is growing the need of the food-service companies in Dubai and the UAE.
How much does it cost to open a fast food restaurant in Dubai?
The opening cost of a fast food restaurant in Dubai starts from AED 800,000. However, the total expenditure of beginning a setup for fast food varies due to several factors. For example, restaurant’s size, location, concept, ambience, offering scale, serving menu, etc.
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