Dubai boasts one of the largest and most robust economies in the world. It is also home to some of the most successful businesses across the globe. The reason for its strong economic growth is the ease with which businesses can be set up across the UAE, including foreign businesses. So, starting a foodstuff business is a lucrative idea with a wide scope for growth and profitability for culinary entrepreneurs.
One area that has seen exponential growth in the past decades is the food industry. Dubai is not just a hotspot for trade but also for international tourism. It is a premier tourist destination primarily because it offers some of the world’s choicest, finest, and most authentic cuisines and dining experiences. It is said over 19,000 new food outlets are believed to enter the Dubai food market this year!
Read on to discover the steps to begin your culinary venture in Dubai.
Starting a foodstuff business Dubai: steps to follow
To transform your foodstuff business plan for Dubai into reality, here are the steps to be followed:
Step 1: Research the market
Market research and analysis are needed before starting any business anywhere in the world, and the foodstuff business is no exception. This helps you understand your target market’s requirements, demands, and preferences.
It also gives insight into your prevalent competition and what can be done differently to make your foodstuff business stand out.
Step 2: Choose your business plan
You must choose a business type and plan based on your market research. Dubai’s culinary industry offers a wide variety of business opportunities, such as cafés, fine-dining restaurants, catering businesses, food trucks, cloud kitchens, and so on. Select the right business type based on your skills, resources, and interests.
After this, create a detailed business plan based on your business objectives, goals, target market, marketing and promotion strategy, financial projections, and daily operations. This can be used as a roadmap to make strategic business decisions or attract investments.
Step 3: Food business setup
Before starting a foodstuff business in Dubai, consider which of the zones to choose. The three business zones in Dubai are the free zone, mainland, and offshore. In the free zone, 100% foreign ownership is allowed, along with several tax benefits. However, if you choose the mainland, a partnership is the only way to go.
As per Dubai’s regulations, a local sponsor who will be holding a majority share in the business is needed to establish a foodstuff business on the mainland. Choose the right zone to ensure your Dubai food market entry is a success.
Step 4: Register your business setup in Dubai
To register your business, the required documents of all shareholders, such as copies of their passports, residence or visit visas, NOC from a sponsor (if any), and Emirates ID of shareholders with a residence visa, must be submitted to the Department of Economic Development (DED).
Step 5: Foodstuff licensing Dubai
Depending on the type of foodstuff business you want to start, licenses and permits must be obtained. Consider the food import regulations, food handling permits, and trade licenses needed to ensure your business isn’t in contravention of any food safety requirements. Information about the same can be obtained from the Food Control Department (FCD) of Dubai Municipality.
For instance, operating without a trade license, using contaminated or expired products in an unsanitary environment, mislabelling food products, or serving non-halal foods can attract stringent penalties and fines.
Once the trade license is obtained from DED and you have FCD’s clearance, apply for a food license from Dubai Municipality. After this, FCD conducts a food safety and hygiene inspection to ensure the foodstuff business is adhering to its food code and to maintain a safe and healthy environment for restaurant goers. The general cost of obtaining all these licenses can be from AED 15,000 to AED 25,000. The cost may vary according to your business needs and preferences.
Step 6: Choose a right location for your business
Dubai’s highly diverse and tolerant cultural environment is home to and hosts a global population, making it an ideal fit for starting a foodstuff business. Location can make or break a business. When it comes to a foodstuff business, choosing the right location is paramount for success.
A strategic location near to tourist hotspots coupled with ample space, sufficient parking, and easy accessibility to commercial and residential properties is needed. Along the same lines, consider the rent as well because it must not exceed 10% of your annual turnover for profitability and sustainability.
Step 7: Train your staff properly
Skilled and trained staff is needed to ensure the success of your food business. After all, they will be responsible for the food and service presented to your target market. Ensure they undergo the required food safety and hygiene training as per Dubai’s regulations, along with updated health certificates.
Step 8: Develop a unique menu
A unique menu that appeals to your target market helps to grow your business. While food quality directly depends on the quality of ingredients, ensure sourcing high-quality ingredients.
For this, you must make a list of reliable suppliers to take care of your foodstuff business’s ingredients and food-related requirements. So, a solid foodstuff supply chain should be in place before the business can open its doors.
Step 9: Build marketing strategy & promote
Finally, a robust marketing strategy is needed to create buzz and awareness about your business in Dubai. From online to offline marketing and promotion, consider the ideal channels to reach your target audience and employ them to increase your business reach. Research the ideal channels and choose from the resources available.
The foodstuff industry opportunities offered by Dubai are unlike any in the world. Its booming, welcoming, and rapidly developing economy makes it a wonderful destination for starting a foodstuff business. From a diverse food culture and high tourist traffic to a supportive business environment and growing market delivery, Dubai is the perfect fit for starting a culinary entrepreneurial venture.
By following the steps and considerations discussed until now, you are a step closer to manifesting your Dubai food market entry into reality.
Conclusion
In this blog, we have mentioned the basic steps that you must need to start your food business in the UAE. Are you planing to start your business setup in Dubai? Don’t know where to start? Emirates Business Setup is here to rescue.
EBS is a top business consultancy in Dubai catering to all your business needs and solutions. Contact us today and let us handle everything for you!
