If you are planning to open a restaurant in Dubai, you need to understand the licensing process, required approvals, and overall costs. This guide explains how to open a restaurant in Dubai and how much it costs, step by step.
Is Opening a Restaurant in Dubai Profitable?
Dubai continues to see a steady demand for new food concepts. This is driven by a population that actively dines out and a hospitality market that attracts global attention.
In recent years, the restaurant industry in Dubai has evolved beyond traditional dining formats. Concepts focused on niche cuisines, health-conscious menus, experiential dining, specialty coffee, and chef-led formats are gaining traction. Cloud kitchens, delivery-first brands, and compact dine-in models have also lowered entry barriers for new restaurant owners.
That said, competition in Dubai’s restaurant market is high. Profitability depends heavily on choosing the right location, controlling operational costs, and aligning your concept with current consumer trends. Entrepreneurs who carefully plan their menu, pricing, and licensing structure are better positioned to open a restaurant in Dubai that is both sustainable and profitable.
Steps to Open a Restaurant in Dubai
1. Choose a Jurisdiction
The first step to open a restaurant in Dubai is choosing the right jurisdiction: mainland or free zone. If you plan to operate a physical restaurant, the mainland is usually the better option. A mainland license allows you to serve customers directly across Dubai and open multiple branches without restrictions. Free zones are better if you are setting up a cloud kitchen, catering unit, or food production facility. Businesses licensed in free zones cannot directly serve the mainland market without additional approvals.| Feature | Free zones | Mainland |
| Regulatory authority | Free zone authority | Department of Economy and Tourism |
| Ownership | Full foreign ownership | Full foreign ownership |
| Expansion | Limited expansion outside free zone | Can open multiple branches in Dubai and UAE |
| Best for | Virtual kitchens, catering units, or F&B production facilities | Physical restaurants, cafes, and dine-in outlets |
2. Choose a Business Activity
Before you apply for a license, you must clearly define your restaurant business activity. A restaurant license in Dubai allows you to operate:- Full-service restaurants offering dine-in, takeaway, and catering services
- Cafes or coffee shops serving beverages, snacks, and light meals
- Specialty outlets such as bakeries, dessert bars, juice shops, or ethnic cuisine concepts
- Catering and delivery-focused restaurants using in-house or third-party platforms
- Cloud kitchens or dark kitchens operating without a dine-in facility
- Franchise restaurants operating global or regional food brands
3. Apply for a Trade License
You need a commercial license to run a restaurant in Dubai. Your business plan needs to be approved by the regulatory authority before you can apply for a trade license. Mainland licenses usually take longer to process than free zone licenses.4. Get Food Safety & Municipality Approvals
You need approval from Dubai Municipality to make sure your kitchen and operations meet food safety standards. You should submit your restaurant layout and kitchen design for review. This includes food preparation areas, storage, ventilation, and waste disposal. Once approved, the Municipality will inspect your location to confirm everything follows hygiene and safety guidelines. You and your staff must also complete food safety training and obtain Menu and Food Handling certification. These are required before you can start operations and are checked during inspections.5. Get Civil Defense and EHS Approvals
Before opening your restaurant in Dubai, you need approval from Civil Defense to confirm that your premises meet fire safety and ventilation requirements. This includes fire alarms, extinguishers, emergency exits, and proper exhaust systems in the kitchen. You also need Environmental Health and Safety (EHS) approval to ensure your restaurant follows basic guidelines for waste management and sustainability. This covers how you handle food waste, grease traps, and general cleanliness. If you plan to serve alcohol, operate a shisha café, or offer outdoor seating, you may need additional permits depending on your restaurant concept and location.6. Process Residency Visas
Once you receive your trade license and required approvals, you can apply for residency visas. As a restaurant owner in Dubai, you can sponsor your own investor visa as well as visas for your employees. You can also sponsor visas for your dependents, depending on your visa category and eligibility.7. Open Corporate Bank Account
You need to open a corporate bank account to manage payments, supplier transactions, and operating expenses. Banks usually classify food and beverage businesses as moderate-risk due to high transaction volumes. When you apply for a bank account, you may be asked to submit your trade license, Dubai Municipality food safety approval, lease agreement, and business plan. In some cases, banks also request supplier contracts, kitchen equipment invoices, and your menu with pricing. Once your bank account is active, you must register for Corporate Tax within three months of business incorporation. Depending on your turnover, VAT registration may also be required.Cost of Opening a Restaurant in Dubai
On average, the cost of opening a restaurant in Dubai can range from AED 200,000 to over AED 2 million. This includes trade licensing, government approvals, rental costs, interior fit-out, kitchen equipment, staffing, and initial operating expenses.
This is a breakdown of the main costs of opening a restaurant in Dubai:
| Category | Item | Estimated cost | Payment frequency |
| Legal & Licensing | Trade license | AED 12,000 – 30,000 | Annual |
| Food & restaurant license | AED 8,000 – 15,000 | Renewed every year | |
| Approval fees | AED 1,000 – 10,000 | One-time | |
| Ejari (Tenancy registration) | AED 200 – 500 | Per contract | |
| Real estate | Annual rent (Mid-tier to Prime) | AED 60,000 – 500,000+ | Annual |
| Security deposit | 5% – 10% of annual rent | One-time | |
| Interiors | Interior fit-out & design | AED 150,000 – 700,000 | One-time |
| Kitchen equipment & furniture | AED 50,000 – 500,000 | One-time | |
| Fire safety & HVAC systems | AED 10,000 – 50,000 | One-time | |
| Staffing | Staff visas & medical (per person) | AED 5,000 – 7,000 | Every 2 years |
| Staff salaries | AED 25,000 – 80,000 | Monthly | |
| Operations | Initial food & beverage Inventory | AED 20,000 – 100,000 | One-time |
| POS, billing & CCTV | AED 8,000 – 25,000 | One-time | |
| Utilities | AED 5,000 – 15,000 | Monthly | |
| Marketing | Branding, website, & social media | AED 5,000 – 20,000 | One-time |
| Monthly marketing & Ad spend | AED 3,000 – 20,000 | Monthly |
Open a Restaurant in Dubai With A&A Associate
A&A Associate is the UAE’s largest business setup advisory. Our seasoned consultants have a decade of experience helping entrepreneurs start businesses in free zones and the mainland. We offer our clients end-to-end support with licensing, visa, and bank account opening. Get in touch for a free consultation!
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