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Are you a UK entrepreneur with limited capital, a laundry business in Dubai could be your ideal launchpad. With rising operational costs, labour shortages, and tough regulations, doing business in UK is an uphill battle. Chemical costs have surged by 15%, wages by up to 25%, and freight costs jumped by 300%, making it increasingly difficult to launch a profitable venture on a tight budget.
Dubai offers a great alternative for those seeking a fresh start. It has zero personal and corporate income tax, simplified business setup processes, and lower initial capital requirements, the city provides an accessible entry point for entrepreneurs with limited budgets. The Dubai laundry market, valued at approximately £191 million in 2025 and expected to grow at over 5% CAGR, presents scalable opportunities without the heavy regulatory burden found in the UK.
The city’s growing expatriate population, nearly 10 million tourists in the first half of 2025, and vibrant hospitality sector creates consistent demand for laundry services, providing stable profitability and scalable opportunities.
This blog will walk you through everything you need to know about how to start a laundry business in Dubai. From understanding the market and regulations to getting set up and licensed, so you can start your venture on the right footing.
The recent UK Budget announced by Chancellor Rachel Reeves aims to raise £40 billion in taxes, significantly affecting entrepreneurs. The UK government increases Capital Gains Tax (CGT) on the sale of business shares, which drives migration.
From April 2025, entrepreneurs pay 14% CGT on their first £1 million of exit cash under Business Asset Disposal Relief (BADR), increasing to 18% from April 2026. This is a rise from the previous 10% BADR rate. Furthermore, the CGT rates on other business disposals increase to 18% for basic rate taxpayers and 24% for higher rate taxpayers.
The UK government has also abolished the 225-year-old non-domicile tax regime in March 2024. Starting April 2025, overseas assets of non-domiciled individuals become subject to inheritance tax.
For small businesses like laundry operations, these higher CGT rates apply similarly. Laundry business owners selling their business or shares must prepare for increased tax liabilities. Qualifying for BADR requires ownership of at least 5% and active involvement in the business, which typically applies to laundry business owners. The CGT annual exemption is £3,000 for 2025-26, with gains above this subject to tax.
The increased tax burdens have incentivized many UK entrepreneurs, including laundry business owners, to relocate to low-tax jurisdictions like the UAE.
UK laundry businesses are facing increasing challenges that make it hard for them to grow. Financial pressures, strict environmental rules, and tough competition all add to the difficulty of expanding. Meanwhile, in Dubai, the growing population and urbanization are boosting the demand for laundry services. As well as the city does not levy income taxes, allowing business owners to retain more earning and reinvest efficiently.
In 2025, the UAE laundry care market is valued at £191 million, and this figure is expected to nearly double, reaching around £345.14 million.
Likewise, the UAE laundry appliances market is projected to reach £276.81 million in 2025, with a compound annual growth rate (CAGR) of 5.67%. By 2030, it is forecasted to hit £364.71 million.
These numbers highlight the significant potential of Dubai’s laundry sector, making it an ideal location to start a laundry business:
Growing Entrepreneurial Ecosystem
Dubai offers a vibrant ecosystem filled with global talent and networking opportunities. The city has become a hub for:
Increasing population and tourism
Dubai remains a top destination for expatriates and tourists. Residential real estate sales increased by 12 percent in 2022 compared to 2021, indicating a growing interest in city living. Nearly 10 million tourists visited Dubai in the first half of 2025, ensuring consistently high demand for cleaning services.
Busy lifestyle demands
Studies indicate that 25% of UAE residents wash clothes once daily. Due to busy lifestyles and double-income families, most residents opt to outsource their laundry services to experts.
Commercial demand
The hotel industry, medical facilities, spas, salons, and fitness centres need to have laundry done regularly. Emirates Flight Catering opened a £ 160 million washing facility in Dubai Investment Park in July 2025, increasing capacity by more than 50% and generating 400 new positions.
Sustainable practices
As per market surveys, 59% of individuals affirm that sustainability in laundry detergent matters to them, and 40% of the residents of the UAE intend to adopt more sustainable practices. This offers prospects for sustainable laundry companies.
Industry profitability
Laundry companies usually have good profit margins between 15% and 25%. The UAE laundry sector is worth around £ 0.5 billion per annum. The international dry-cleaning and laundry services market stood at £ 62.03 billion in 2025 and is expected to rise at a 6% CAGR from 2025 to 2035 and reach £ 111.16 billion by 2035.
Lower labour costs and operational efficiencies
While Dubai has competitive wages, operational models such as self-service laundromats minimize staffing needs. Additionally, access to modern infrastructure and technology supports cost effective operations.
Regulatory environment
Dubai mandates hygiene and safety standards with regular inspections, but its transparent and business-focused regulatory regime is designed to facilitate compliance rather than complicate it.
When deciding how to initiate a launderette venture, you must decide on the proper business model depending on your investment level and target market.
1. Self-service laundromat
Self-service laundromat involves coin or card-operated machines where customers wash and dry their clothes themselves. The Investment range is from £ 16238.7 to AED 40596.7.
| Benefits | Considerations |
|---|---|
| Lower staffing requirements | Requires high-traffic location |
| Reduced operational complexity | Equipment maintenance is crucial |
| Lower labour costs | Lower profit margins per transaction |
2. Full-service laundry (wash and fold)
This type of model entails washing, drying, ironing, and folding services in which customers drop off their laundry and return to collect it after processing.
Investment range: £ 20,298 to £ 50,745
| Benefits | Considerations |
|---|---|
| Higher pricing compared to self-service | Labor-intensive operations |
| Potential for pickup and delivery services | Quality control is critical |
| Building loyal customer base | Need for reliable staff |
3. Dry cleaning services
Specialized cleaning for fabric that is delicate in nature, suit, formal wear, and high-end clothing.
Investment range: £ 30447 to £ 81,193
| Benefits | Considerations |
|---|---|
| Highest profit margins (typically 15-25%) | Requires specialized equipment and training |
| Premium customer segment | Higher liability for expensive items |
| Less price-sensitive market | Longer setup time |
4. On-demand mobile laundry service
App-based laundry service with pick-up and delivery.
Investment range: £ 24358 to £ 60,895
| Benefits | Considerations |
|---|---|
| Modern convenience model | Technology development costs |
| Subscription revenue potential | Logistics coordination required |
| Scalable across multiple areas | Initial marketing investment |
5. Commercial B2B laundry
Large-scale laundry service for hotels, hospitals, restaurants, spas, and other commercial businesses. The investment range is £ 40596 to £ 101491+.
| Benefits | Considerations |
|---|---|
| Long-term contracts | Higher initial investment |
| High volume operations | Industrial-grade equipment needed |
| Predictable revenue streams | Longer client acquisition process |
Starting a laundry business in Dubai is profitable with significant growth potential. To set up without hassle, here are the steps to follow:
Step 1: Select your jurisdiction
The first decision is whether to register your business on the mainland or within a Free Zone.
Mainland companies can operate across the entire UAE and serve residents directly, while Free Zones offer advantages like 100% foreign ownership and tax benefits. Notably, since early 2025, Free Zone companies can obtain permissions to operate on the Mainland, providing greater flexibility.
Step 2: Select a business name
Choosing the right name is important. Make sure it aligns with UAE naming standards, avoiding anything offensive or sensitive and clearly reflects your services. You’ll submit several options for official approval, so prepare to wait a few days for confirmation.
Step 3: Define your business activities
Specify the exact laundry services you will be offering, such as washing, ironing, dry cleaning, or whatever activity. This clarification at the beginning ensures that you acquire the right licensing and remain compliant.
Step 4: Get your trade license
Prepare all documents including:
License costs:
A laundry business license in Dubai typically takes 3 to 10 working days, depending on the completeness of approvals and documentation.
Step 5: Adhere to municipality regulations
Make sure your activities are in accordance with Dubai Municipality’s health, safety, and hygiene standards. These include good signage, the safe storage of chemicals, adequate fire protection, and general cleanliness throughout your premises.
Step 6: Get a suitable location
Choose a location with enough space and good exposure in high-demand zones like Dubai Marina or Deira. Renting prices can differ, so weigh cost against parameters such as traffic and proximity to your intended customers. The high-demand areas in Dubai:
Step 7: Outfit your laundry facility
Purchase good commercial washing machines, dryers, ironing tables, and other basic equipment. Proper equipment guarantees quality service and optimal operations, with costs proportionate to your business size.
Step 8: Hire qualified staff
Recruit laundry attendants, ironing specialists, and at least one delivery driver. Consider costs beyond salaries, such as work visas, insurance, and staff training, to maintain smooth day-to-day operations.
Step 9: Open your business bank account
Finally, set up a corporate bank account to manage your finances professionally. You’ll need your trade license, and company documents ready to complete the process.
Initial setup cost:
| Category | Cost Range (£) |
|---|---|
| Trade License & Visa | 3044- 5074 |
| Trade Name Registration | 405 – 608 |
| Business Setup Consultant (optional) | 608 – 1014 |
| Office/Shop Rental Deposit | 2029 – 10149 |
| Equipment (Washers, Dryers, etc.) | 14208 – 40596 |
| Interior Setup & Renovation | 2029 – 8119 |
| Initial Inventory (Detergents, Supplies) | 405 – 1014 |
| Signage & Branding | 608 – 1623 |
| POS & Software | 405 – 1014 |
| Insurance | 405 – 1217 |
| Total Initial Investment | 26387 – 107581 |
*All costs are estimates provided on the basis of market rates. To know specific costs, please refer to the respective website/s.
Minimum investment range
Initial costs may be around £10149 for tiny setups or kiosks; typical businesses need £20298 to £50745, depending on size and scope of services.
Monthly operational expenses
| Expense Category | Monthly Cost* (£) |
|---|---|
| Rent | 710 – 3044 |
| Utilities (DEWA) | 405 – 1623 |
| Staff Salaries | 811 – 2435 |
| Detergents & Chemicals | 202 – 811 |
| Vehicle Maintenance & Fuel | 500 – 405 |
| Marketing | 202 -1217 |
| Miscellaneous | 202 – 405 |
| Total Monthly Costs | 2638 – 10,047 |
*All costs are estimates provided on the basis of market rates. To know specific costs, please refer to the respective website/s.
Note: Utilities and chemicals contribute about 44% and 5-7% to total operational costs, respectively.
Revenue and profitability
Estimated revenue (small operation):
License renewal
Laundry licenses should be renewed each year. The consequence of late renewal is fines and business suspension.
Municipality inspections
Periodic inspections by Dubai Municipality to ascertain compliance with health, safety, and hygiene regulations.
Environmental compliance
In 2025, over 2,500 UK companies registered their presence in Dubai, reflecting a 14% annual increase and signalling robust confidence in the emirate’s business environment.
For UK entrepreneurs, launching or relocating a laundry business in Dubai offers practical solution to domestic challenges, combining low taxes, streamlined compliance, strong demand and operational efficiencies. By walking through the blog, you will get an answer on how to start a laundry business in Dubai. From choosing your business structure and getting the appropriate licenses to investing in good equipment and staff, you will be able to confidently go through the process without experiencing common mistakes.
Compliance with Dubai’s health, safety, and environmental laws will ensure that your business is efficiently operated and helps develop trust with customers.
If this sounds overwhelming, partnering with Stratrich can simplify the journey, ensuring you launch efficiently and sustainably.
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