Open a Grocery Store in Dubai in 5 Steps
The business setup process for a grocery store is pretty similar to starting most businesses in the UAE. You will need to do a few important things: find a good place to set up your store, select a company structure, apply for the license, get the necessary government approvals, get your employees visas, and open a business bank account.
1. Find a Location
2. Choose a Legal Structure
These are the legal structure options for grocery stores in the country:
- Sole proprietorship
- LLC (Limited Liability Company)
- Franchise of existing grocery store
- Partnership
Once you decide on the structure, you can register your trade name with the Ministry of Economy.
3. Get a Trade License & Permits
Grocery stores need a trade license to operate. You will need to apply for a commercial license with the government. If you are planning to operate on the Dubai mainland, Dubai’s Department of Economic Development (DED) will issue your license. If you are operating in a free zone, you must go through the relevant free authority.
As your store deals with perishable items, you will also need additional approval and permits from authorities like the Food Safety Department and the Dubai Municipality. A business setup consultant can help you get the necessary permissions.
Important Documents for Grocery Store License Application
- Business plan
- Memorandum of Association (if necessary)
- Owner(s) personal identification documents (Passport, Emirates ID)
- Tenancy contract
- Approvals from DED, Dubai Municipality
- No Objection Certificate (if necessary)
- Trademark registration
4. Hire Staff & Apply for Visas
If you need some expert help to start a business in Dubai, consider hiring a business setup consultant who can take you through the whole process, including opening a bank account, and help you stay compliant with the ongoing business and tax laws.
Cost of Starting a Grocery Store in Dubai
A big part of owning and operating a grocery store is the cost. Your budget will determine how much you can afford to invest in your location, what kind of products you can sell, how many people you can hire, and your business hours. It can also influence whether you can offer delivery services, as third-party apps like Careem and Talabat.
The actual cost of opening a grocery store in Dubai can be broken down into nine factors:
- Trade license
- Business registration fees
- Government approvals
- Business insurance
- Storefront costs (rent, security, chillers, interiors & design)
- Stock and inventory management
- Employee permits & salaries
- Monthly utilities
- Advertising expenses
Generally, you can expect to incur around AED 14,000 to AED 40,000 just for the grocery license cost in Dubai. A larger budget will be required to maintain ongoing operations, especially if you are located in an expensive area and offer niche products.
Reach out to a business setup consultant who can give you the exact cost of starting a business in Dubai, based on your requirements.
Food & Safety Considerations
Starting a Grocery Store in Dubai: Pros & Cons
Pro: Diverse Range of Market Possibilities
Pro: Consistent Need by Consumers
Pro: Prime Location for Business Growth
Dubai is a major business-friendly city, attracting entrepreneurs and investors alike. The Emirate offers many government incentives to promote company registration, business expansion and success. Starting a grocery store in Dubai is a chance for you to take advantage of the city’s consumer base.
Con: Market Oversaturation
As Dubai is a populated city, grocery stores can be found everywhere. Popular supermarket chains take every opportunity to expand their presence, so you will need to find a way to uniquely position yourself to your customers. This is where having exclusive, imported products or cultivating a loyal online presence can help.
Con: Large Capital Investment & High Rental Cost
While Dubai is a lucrative location for business owners, it can also be an expensive one. For grocery store owners, highly populated areas and/or popular neighborhoods (Dubai Marina, Bur Dubai, Business Bay, JLT) can take out a sizable chunk out of your grocery store license cost budget.
Compared to other types of businesses, grocery stores in Dubai will also need a bigger investment as it involves a lot of startup costs. Expenses related to stock, interior design, regulatory permits, and marketing can all add up.
Consider setting up in a free zone or doing your due diligence on areas with reasonable rent and high customer demand to manage costs.
How A&A Associate Can Help You Open a Grocery Store in Dubai
Our business setup constants offer unlimited support based on years of expertise and local knowledge. We handle the entire company formation process from applying for your trade license to sorting out visas and helping you open a bank account. Come to us with a business plan and we’ll get started!
FAQ
You should apply to the Department of Economic Development (DED) for a grocery store license. The trade license will allow you to legally own and operate your grocery store in Dubai.
A franchise grocery store is a branch of an already existing supermarket chain. It offers advantages like brand recognition, pre-existing operational guidelines, and supplier connections.
To open a grocery store in Dubai, UAE, you should register your trade name, apply for a business license, set up your store, buy the stock, get the necessary government permits, apply for employee visas, and get a bank account.
You will need to submit the owner(s) personal ID documents, Ejari certificate, approved health and food permits, Memorandum of Association, business plan, and a no objection certificate from your sponsor, if necessary.
You will need a trade license from Dubai’s Department of Economic Development (DED), and health and safety permits from the Food Safety Department and the Dubai Municipality.
To open a grocery store in Dubai, you will need to get a commercial trade license, register your trade name, apply for employee visas, and open a bank account. You should also choose a location and finalize a retail space.
Consider the following factors when selecting a location for a grocery store in Dubai: foot traffic, customer demographics, budget, population, competitors in the area, and demand.
Opening a grocery store in Dubai can be a pricey venture if you choose to open a large store in an expensive area. However, it is possible to have a profitable store if you choose a good location and offer different products and incentives than your competitors.
You can expect to pay around AED 14,000 to AED 40,000 to open a grocery store in Dubai. Costs will include license application, rental agreement, government approvals, employee permits, stock, interior design for storefront, and marketing.
