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Dubai is the best place to start a grocery store business, due to its growing population of expatriates
from around the world. People have unique food preferences and there is high demand for
international and local products. This blog walks you through every step of “how to open a grocery
store in Dubai?” answering all your questions.
Key Takeaways
- The cost of opening a grocery starts from AED 20,000 and can go up to AED 150,000 depending on the store size.
- Proper planning and obtaining trade licenses and food safety permits are an important step to compliance with Dubai Municipality regulations.
From Idea to Reality: 10 Easy Steps to Open a Grocery Store
in Dubai
Step 1: Research, Explore and Decide
The first action is to do thorough research on your business and have a business plan. The result of a
top-notch business plan is you get answers to:
- What products to sell
- Whom to sell
- Which location
- Company structure
Once the company structure is ready, it is easy to approximately evaluate the cost of opening a
supermarket in Dubai.
Step 2: Choose your Business Structure
Decide whether to set up the store as a sole proprietorship or partner with a local. Selecting the
right legal entity for your business determines your taxes, liabilities, business regulations, and
ownership. Choose the option that suits your business goal.
1. Sole Proprietorship
- Ownership: Fully owned by an individual.
- Liability: The owner is liable for all debts and obligations.
- Best for: Small businesses with minimal risk.
2. Limited Liability Company
- Ownership: Usually, expatriates hold up to 49% share and UAE nationals hold 51%. in some sectors, expatriates hold full ownership.
- Liabilities: Limited to shareholder’s capital investment. This protects personal assets
- from business debts.
- Best for: Individuals with large grocery businesses looking for security while enjoying growth and investment.
3. Branch of an existing Company
- Ownership: Allows both foreign and local company to establish a branch in Dubai.
- Liabilities: The parent company is liable for the debts.
- Best for: International businesses looking to expand business operations in Dubai.
Step 3: Find your Perfect Location
Select a location that attracts customers to your business. Know the business jurisdiction and make
sure it is allowed to open the business activity in the chosen location. Some things to consider while
choosing your location are:
- Foot traffic and easy accessibility to the store
- Visibility of the store for potential customers
- Proximity to suppliers
- Adequate parking space
- Competition in the area
- Align with the target market
Apart from this, there are free zone and mainland setup options, each has its own advantages and
disadvantages.
Step 4: Decide on your Brand Name
The trade name should be approved by the DED. It is important to choose a name that aligns with
the naming regulations of the UAE. Stay away from using controversial words and make sure that
your trade name registered is used on signboards and other license papers. Some important things
to consider are:
- Choose a unique name that is not similar to other international brands or government projects.
- Make sure the name does not violate any local laws.
- Check if the name is available on the DED website.
- The name should be relevant to the business.
All these will enhance the brand presence and instill trust in the customers.
Step 4: Get initial approval
The answer to your question “How to open a food mart in Dubai?” is partly covered and now it’s
time to cover the documentation process. The Dubai government and the Department of Economic
Development (DED) have set up guidelines and a list of documents to be submitted. Submit your
business plan and documents to get your initial approval. This enables you to start your business and
proceed to the next steps.
Step 5: Submit your Trade License Request
The first license that you have to apply is for a trade license from the Department of Development
Dubai (DED). The list of documents to be submitted include:
- Passport Copy
- Completed trade license application form
- Visa copy
- No objection certificate (NOC)
- Initial approval certificate
- Business Plan
- Trade name reservation certificate
- Tenancy contract
- Proof of personal and financial information
Step 6: Get your Additional Permits and Licenses
After getting a trade license there are some additional permits that have to be obtained from Dubai
Municipality. This is vital for legally maintaining high standards of safety and hygiene. Having these
permits ensures the store adheres to strict regulations regarding food storage, and food handling.
The additional permits are:
- Food Safety License
- Health and Hygiene Permit
- Import and Export License
- Signboard Permit
- Food truck and kiosk permit
- Staff work permits and visas
- Certificate of conformity
- Environmental permit
Step 7: Get your Business Visa
Applying for a visa will take place simultaneously with applying for a trade license. Depending on
your visa status, the dependent visa for your family and staff will be determined. You can apply for
an investor visa or golden visa depending on your interest.
Step 8: Open a Corporate Bank Account
Open a corporate bank account to manage your transactions and business finances. Dubai offers the
latest banking technology and opening one is easy with the right documentation and guidance.
Carefully choose the right bank that offers the best customer service.
Step 9: Design and Launch your Store
It is now time to design your store’s layout depending on the inventory levels. Arrange the shelves in
a way that will increase the sales. Implement a POS system for smooth transactions.
Step 10: Promotion and Branding
From day one start marketing your business with attractive signboards, flyers, and social media
marketing. It is important to make a positive first impression. Use promotions, early bird offers, and
introductory offers to attract walk-ins.
Cost Analysis
Let’s look at the detailed breakdown of the estimated cost involved in opening a grocery store in
Dubai. The costs may vary based on location, store size, and business model.
| Expense Category | Estimated Cost (AED) | Details |
|---|---|---|
| Trade License | 10,000 – 15,000 | Cost for obtaining a commercial license from DED or Free Zone authority. |
| Food Safety License | 1,500 – 3,000 | Required for compliance with food safety regulations |
| Health and Hygiene Permit | 1,000 – 2,000 | Necessary for meeting health standards in food handling. |
| Rent | 60,000 – 120,000/year | Annual rent for retail space varies significantly by location and size. |
| Tenancy Contract Fee | 2,000 – 5,000 | Registration and attestation of the tenancy contract. |
| Setup Costs | 10,000 – 100,000 | Costs for store layout, shelving, lighting, and interior design. |
| Equipment and Supplies | 2,000 – 20,000 | Costs for refrigeration units, POS systems, shelving, and other store fixtures. |
| Initial Inventory | 5,000 – 50,000 | Initial stock of groceries, varies based on the size of the store and product selection. |
| Employee Costs | 3000 – 10,000 | Salaries for staff like cashiers, stockers, etc |
| Marketing and Advertising | 1,000 – 2,000 | Initial marketing efforts including signage, flyers, and online promotions. |
| Miscellaneous Fees | 1,500 – 2,500 | Includes utilities, insurance, and other unforeseen expenses. |
The total estimated cost for a small store set up is AED 20,000 to 50,000 and for a high-end store set
up is AED 220,000 – 500,000.
For a smooth and successful grocery store launch in Dubai, consult experienced business advisors
like Emifast. They’ll guide you through every step and ensure you get accurate cost estimates and
the support needed to make your venture a success.
Business Tips
- Location is the key to attracting the target customers. Choose a high-traffic area like a residential area, school, office, or shopping district.
- Offer online ordering and home delivery. In today’s market, having an app and delivery partners can increase sales.