Diverse population of the UAE presents an opportunity for the investors to venture into the F&B sector. People in Abu Dhabi, Dubai, and Sharjah like to munch on snacks while sipping tea or coffee. You can open a tea shop in Dubai to serve the users who love to sip, relax, or talk outside.
Despite the growing cafe culture in Dubai, the interest in taking the tea remains strong. Add a few delicious light meals in your offerings, and your menu becomes crowd puller. However, licensing for a business in the UAE requires some legal, financial, and logistical considerations.
Transform your dream of owning a Dubai tea lounge into reality. Take the license, ensure compliance with the UAE authorities’ regulations, and start serving the tea to the tea lovers. This post provides complete information about everything to begin your tea point in Dubai, so keep reading.
Key takeaways of tea and hot drinks sector of the UAE
These are the notable insights from, the tea and beverages sector of Dubai, UAE.
- Diverse expatriate and local Emirati population is a prospect for entrepreneurs to open tea shops, despite the growing cafe culture.
- UAE revenue at home (through tea sales in supermarkets/grocers/convenience stores) will reach US$153.46m in 2029 from US$131.38m in 2025. (Statista)
- Out-of-home tea sales (in restaurants and bars) across the UAE will generate a revenue of US$261.38 in 2025. (Statista)
- UAE e-commerce tea revenue has projection to cross US$6.15m by 2029 from US$4.10m in 2025 at 10.66% CAGR. (Statista)
- Dubai tea-house businesses must understand customer preferences, identify popular tea varieties, know service expectations, and ambiance patterns.
- Conduct thorough market research to explore different tea trends like matcha, herbal blends, and traditional chai.
- Differentiate your tea shop business in Dubai from competitors by aligning your offerings with the customer demands.
- The awareness of the UAE F&B market informs a unique selling proposition for your tea-house in Dubai.
Process to register license for a tea shop in Dubai
This is the step-by-step procedure for the registration of a license for a tea shop in Dubai.
- Conduct market analysis: Perform a thorough market research to create a business plan for your Dubai tea point. Take into account the consumer preferences, F&B trends in the UAE, and market competition. Identify your target market and create unique selling propositions that set your tea shop apart from competitors.
- Select company and trade name: Choose a business name and accompanying trade name for your tea corner in Dubai. Ensure, both names follow the corporate naming regulations of the UAE. Remember, your company and trading names must uphold your brand, reflect your vision, and appear attractive to the customers.
- Decide corporate jurisdiction: Determine legal jurisdiction for your tea-house from Dubai mainland or free trade zones. Choose the mainland Dubai, if you want to have a greater access to serve the general population. Otherwise, opt for a free zone, if you want to serve the tea to the businesses there.
- Get initial approval: Receive preliminary approval for your Dubai tea lounge from the Department of Economic Development (DED).
- Secure shop at right location: Finding suitable location is crucial for a Dubai tea house business, as it plays role in its success or failure. Ensure the space meets the Dubai Municipality regulations, including health and safety standards. Establishing a tea shop in a shopping mall can turn out beneficial due to its greater footfall.
- Obtain trade license: A trade license enables entrepreneurs to operate tea shop business in Dubai, as per the government regulations. It includes permissions for preparing, selling, and serving tea, beverages and light snacks, ensuring food safety, hygiene, and operational quality. Submit necessary legal documents, pay fee, and receive commercial license to run cafe or a tea lounge.
FAQs about the tea industry in the UAE
These are the answers to the common questions regarding the tea industry across the UAE.
Is tea popular in the UAE?
Tea and Arabic coffee are integral to the culture and traditions of the Middle East. Often, people in the Arabian Gulf brew and have the tea at least twice a day in the homes. Furthermore, they like to sip the tea outside at the restaurants and the lounges.
Does a tea business in Dubai earns you profit?
The UAE as a commercial and travel hub in the MENA region hosts many expatriates and tourists. Setting up a tea shop business in Dubai is a profitable opportunity for the investors. Booming tea/cafe and hot drinking culture is contributing to the non-oil trade of Dubai, and the UAE.
Is tea a luxury item in the UAE?
No! Tea is not a luxurious product in the UAE. However, its historical significance extends beyond the daily consumption of tea as a beverage across the UAE. People in Dubai and other Emirates present or gift the tea to strengthen the personal/friendly relationships and political/diplomatic alliances.
What is Dubai Chai Toast?
The viral Dubai Chai Toast comprises of strong tea (kadak chai), milk cream (malai), and sliced bread. Dubai Chai Toast is made by spreading the cream between the baked bread slices and pouring hot tea over them. It is served both at homes, tea lounges, and at other food points in Dubai.
