How to Open a Grocery Store in Dubai, UAE

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Nithila Kumar
Last updated on April 22, 2025

Want to get into the retail food business? A grocery store can be a profitable venture if you do your research and develop a good budget. Understanding how to open a grocery store in Dubai is essential information for aspiring owners and investors who want to take advantage of the city’s residents.

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

As there are already a lot of grocery stores in Dubai, finding an area that isn’t packed with baqalas and other supermarkets can be challenging. Try to scope out newer neighborhoods in Dubai, or areas with grocery stores that can only be driven to. If you open a store closer to where people live, you are more likely to attract steady foot traffic.

You can also specialize in a certain type of product, or offer products not found in the stores in your desired area. This way, you can stand out from your competitors.

2. Choose a Legal Structure

A grocery store in Dubai can be set up under many types of business structures. These structures will determine your autonomy, the amount of liability you have, the number of owners, and in some cases, your capital.

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

It’s a good idea to hire a barebones staff and then expand your employee base when you’re just starting a business. You will need to arrange for residency permits for your employees, which you can do after your trade license has been approved. You can always hire more staff if your grocery store starts to get popular and attract more customers.

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

As your business deals with the handling of food products, you will need to pass an initial health inspection and get approval from the Dubai Municipality to start your grocery store in Dubai. You will also need to be prepared for ongoing inspections.

You must also make sure to abide by the food safety regulations in terms of storing and labeling your products. Selling expired, opened, or mislabeled products is a crime and can result in heavy penalties or the termination of your business by the authorities.

Starting a Grocery Store in Dubai: Pros & Cons

Pro: Diverse Range of Market Possibilities

Starting a grocery store in Dubai can be lucrative if you do it right. This type of business offers various possibilities, as you can cater to specific ethnic communities as a way to gain a competitive edge. Alternatively, you can offer more affordable pricing options, add a hot food bar, or allow bulk buying.

Pro: Consistent Need by Consumers

Groceries stores are one of the most commonly sought after amenities in both residential and commercial areas. Everyone needs groceries, so your business will always be in demand. If you’re located in an area without many grocery stores, you can expect a constant stream of customers.

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!

Frequently Asked Questions

How to Apply for a Grocery Store License?

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.

What is a Franchise 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.

How to Start a Grocery Shop in UAE?

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.

What are the Documents I Need to Open a Grocery Store in Dubai?

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.

What Permits Do I Need For Starting a Grocery Store in Dubai?

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.

How to Open a Grocery Store in Dubai?

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.

How to Pick the Best Location for a Grocery Store in Dubai?

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.

Is Opening a Grocery Store in Dubai Expensive?

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.

What is the Cost of Opening a Grocery Store in Dubai?

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.

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Nithila Kumar

With over four years of writing experience, Nithila Ashok Kumar has established a strong expertise in the personal finance, tax, accounting, and business industries. Having worked with companies across the USA, UAE, and India, she specializes in simplifying complex information into content that informs and engages readers.