Starting a food and beverage business in Dubai is a smart move in 2025. With a booming tourism industry, high expat population, and strong demand for global cuisines, the F&B market in Dubai continues to grow. If you’re a foreign entrepreneur planning to tap into this vibrant sector, this guide breaks down everything you need to know to launch your venture smoothly and legally.
Why Start a Food & Beverage Business in Dubai?
Dubai has become a global food destination. From luxury dining to food trucks, the market is filled with opportunities. The city’s supportive business ecosystem, tax-free zones, and access to international talent make it one of the best places to launch an F&B brand. Plus, Dubai’s rising demand for health foods, sustainable packaging, and fusion concepts has opened doors for innovation in the industry.
Growing Demand for International Cuisines
Dubai’s diverse population creates a constant demand for food from around the world. Whether it’s Asian, Mediterranean, Indian, or European, customers are always looking to try something new.
Government Support for F&B Startups
The government actively supports food businesses through initiatives, grants, and simplified licensing procedures, especially in Free Zones.
High-Profit Margins and Market Stability
With the right concept and location, F&B businesses in Dubai can enjoy high margins and consistent customer flow due to year-round tourism and business activity.
Step-by-Step Process to Start a Food & Beverage Business in Dubai
Starting a food and beverage business in Dubai involves choosing the right business structure, securing licenses, finding a location, and meeting health and safety standards. You’ll also need approvals from the Dubai Municipality and the DED. Each step is crucial to ensure your venture runs smoothly and stays fully compliant.
Step 1: Decide Your Business Model
You must first decide whether you want to open a restaurant, cafe, food truck, cloud kitchen, or catering business. Each model has its own licensing requirements, cost structure, and target market.
Step 2: Choose the Right Location
Dubai offers the choice of starting your business in a Mainland or Free Zone. For physical restaurants or cafes, a Mainland license is ideal as it allows you to operate anywhere in Dubai. Free Zones are best suited for food trading, e-commerce, or cloud kitchens.
Step 3: Finalize Your Trade Name
Select a trade name and get it approved by the Department of Economic Development (DED). Ensure the name is unique, relevant to your business, and meets DED’s naming guidelines.
Step 4: Apply for Initial Approval
You’ll need to obtain an initial approval certificate from the DED or relevant Free Zone authority. This confirms that your business activity is approved.
Step 5: Draft the Memorandum of Association (MOA)
The MOA outlines the business structure, ownership, and operational roles. It’s usually drafted with the help of a business consultant or legal expert.
Step 6: Get Food & Safety Approvals
You must apply for a Food License from the Dubai Municipality – Food Control Department. This includes submitting your kitchen layout, waste disposal system, and safety measures.
Step 7: Lease a Commercial Space
Find a location that matches your business model. Your layout plan must comply with Dubai Municipality’s health and safety standards.
Step 8: Obtain Your Business License
Once all documents are in place, you can apply for your commercial license. This will be issued by the DED or Free Zone authority depending on your location.
Step 9: Hire Staff and Apply for Visas
After receiving the license, you can apply for residency visas, labor cards, and Emirates IDs for yourself and your employees.
Step 10: Open a Corporate Bank Account
Choose a bank in Dubai that supports F&B businesses and set up your business account. You’ll need this for all financial operations.
Key Licenses Required for F&B Business in Dubai
To open a food and beverage business in Dubai, you’ll need a Trade License from the DED and a Food License from the Dubai Municipality. Depending on your concept, you may also need approvals for signage, delivery services, and special permits like a Liquor License or Outdoor Seating Permit.
Commercial Trade License
This is the main license that allows you to operate your F&B business legally.
Food License
Issued by the Dubai Municipality, it ensures your kitchen or food production unit meets all health and hygiene standards.
Liquor License (Optional)
If your restaurant or cafe plans to serve alcohol, you must apply for a liquor license and meet certain conditions.
Delivery Permit
If you offer food delivery, you may need a delivery vehicle permit and a rider safety compliance certificate.
Cost of Starting a Food Business in Dubai
The cost varies based on your business model and location. Typically, starting a food and beverage business in Dubai can range from AED 30,000 to AED 300,000. Cloud kitchens and food trucks require less investment compared to dine-in restaurants.
Initial Setup Costs
This includes license fees, approvals, rent, kitchen equipment, branding, and marketing.
Recurring Costs
Monthly rent, utility bills, staff salaries, raw materials, and digital marketing are ongoing expenses.
Choosing Between Mainland and Free Zone
Deciding where to set up your business depends on your goals. If you want to serve customers across Dubai, the mainland is ideal. For export-focused or delivery-only models, free zones offer cost savings and flexibility. Each option has its pros, so choose based on your budget, audience, and long-term plans.
Mainland
You can operate anywhere in Dubai. It’s ideal for customer-facing businesses like cafes and restaurants. Requires DED approval and may need a local sponsor (depending on your business structure).
Free Zone
Offers full ownership, simplified licensing, and tax benefits. Great for food import/export, packaging, or delivery-only models.
Legal Compliance and Food Safety Rules
Dubai has strict regulations around food safety, hygiene, storage, and preparation.
Mandatory Staff Training
Staff must complete food safety training and renew certifications regularly.
Health Inspections
Your premises will be inspected for cleanliness, food storage temperatures, pest control, and more.
Tips for Foreign Entrepreneurs
- Work with a business setup consultant in Dubai to handle licensing smoothly.
- Choose a location with foot traffic or high delivery demand.
- Innovate your menu with health-conscious or vegan options.
- Use biodegradable packaging to appeal to eco-conscious consumers.
- Focus on excellent customer service to get positive reviews online.
Conclusion
Dubai’s F&B sector is thriving, and entering the market in 2025 as a foreign investor can be a game-changer. With the right planning, compliance, and a strong customer focus, your restaurant, cafe, or food brand can find lasting success in the city. For reliable guidance and smooth licensing, always consider working with experts in business setup in Dubai, UAE.
FAQs
Do I need a local sponsor to open a food business in Dubai?
No, not if you choose a Free Zone. In Mainland, some structures still require local sponsors, unless you’re eligible for full ownership.
Can foreigners open food trucks in Dubai?
Yes. Foreigners can operate food trucks with the correct trade license and location approval.
Is a food safety certificate mandatory?
Yes. It’s required by the Dubai Municipality. All kitchen staff must complete certified food safety training.
How long does it take to get a food business license?
It usually takes 2 to 4 weeks if all documents and approvals are ready.
What are the most popular F&B business models in Dubai?
Cafes, casual dining, food trucks, cloud kitchens, and catering services are among the top models in 2025.
