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Coffee in the UAE is more than just a beverage; it’s a cultural experience. The local favourite, cardamom-spiced qahwa, sets the tone, while trendy nitro brews and a wide array of global roasts cater to every palate.
The specialty coffee scene flourishes here, with the Emirate leading the way in sourcing premium beans. Dubai’s renowned roasteries, such as %Arabica and Brew92, carefully select single-origin beans from Ethiopia and Colombia.
This vibrant coffee culture reflects the region’s status as a top per-capita coffee consumer, creating substantial opportunities for entrepreneurs looking to tap-into the burgeoning market.
This guide covers licensing requirements, costs, and steps to open a coffee shop in Dubai, turning a passion into a profitable business.
The UAE coffee market has been growing at a consistent rate of approximately 8.2% per annum and its market value was at USD 3.2 billion in 2025. A large percentage of this growth is due to Dubai.
The emirate accommodates more than 200 nationalities, which promotes various cafe ideas such from the conventional Arabic coffee shops to the specialty of third-wave cafes.
Remarkably, the specialty coffee market is expanding by about 15% each year, driven by Dubai’s rapid growth in foodservice. Such diversity in demographics brings excellent demand at various price ranges and styles of cafes.
The multicultural population of the city and tourism industry in Dubai offer another source of revenue for a well-located cafe, as tourists are willing to try both global and local ideas. The presence of resident and tourist demand has generated a positive environment for both independent operators and branded concepts.
The first important decision while starting the coffee shop involves selecting between mainland and Free Zone establishment. Each choice has its own specific operational settings:
Mainland Coffee Shop
A mainland license permits operation anywhere within Dubai and across the UAE. Foreign investors are allowed to fully own mainland companies without the need for a local sponsor. This best suit the retail shops, shopping centers or even cafe businesses.
The setup in the mainland involves the collaboration with the Department of Economy and Tourism, obtaining approvals with the Dubai Municipality, and food safety certification. The activity code 5630001 includes the coffee shops that prepare and serve beverages with ready-to-eat snacks.
Free Zone Coffee Shop
A Free Zone setup offers simplified setup, 100% foreign ownership, and operational benefits. However, commercial activity remains limited to the designated zone unless you obtain additional permits.
Recent regulatory changes now allow Free Zone companies to operate on the mainland by obtaining DET license. This provides flexibility for businesses wanting to test concepts before full expansion.
The process of opening a coffee shop in Dubai involves a number of approvals to be obtained through different government departments.
Trade License from DET (Department of Economy and Tourism)
Your trade license will allow you to operate your business. The process involves trade name reservation, initial approval, and final trade license issuance. As per UAE laws, trade names should not contain any religious terms, objectionable language, or trademarked words.
The documents required for trade license approval include copies of passports, Emirates ID, Memorandum of Association, Articles of Association, and proof of premises via Ejari-registered tenancy agreement.
Food Safety Approvals from Dubai Municipality
Dubai Municipality’s Food Safety Department has extremely strict rules regarding any food-related establishment. Your coffee shop will be required to supply the Dubai Municipality with detailed plans for your kitchen arrangement, which must include separate sections for food preparation, cooking, washing, and storage. Raw food should never be mixed with ready-to-eat food.
The requirements for approval include ventilation, waste disposal, hand-washing facilities, and materials for surfaces (Non-absorbent and easy-to-clean materials are required for walls, floors, and working surfaces).
Civil Defence and Other Approvals
Fire safety approvals from Dubai Civil Defence ensure that your fire safety equipment and emergency exits meet the required standards. This includes the proper installation of fire safety systems in kitchens with gas installations.
Other approvals may include RTA parking approvals, permits for pork handling if applicable, and approvals for outdoor seating.
The location that you choose to open your coffee shop in Dubai can either succeed or fail your business. There are a number of good locations to be considered, and each has its advantages and disadvantages.
Business areas and offices
Downtown Dubai, DIFC, and Business Bay attract a great number of office workers and professionals on a daily basis. These locations have a high demand for coffee, breakfast and snacks particularly on weekdays.
Rent in this area tends to be very expensive, ranging between the mid to high hundreds of dirhams per square foot per year, yet you benefit from good visibility, easy accessibility by metro, and a constant stream of customers during work hours. Due to the large number of cafes that are already present in these regions, you need a distinct idea, quick service and good branding to be unique.
Shopping malls and mixed-use projects
Malls like Dubai Mall, Mall of the Emirates and more recent projects like the Dubai Expo Mall and South Bay Mall attract more potential sales throughout the year. They are good places to serve shoppers, families and tourists under one roof.
Rents are usually costly, and you might also pay some additional amount as common area fees or commissions, so your expenses will go up. Numerous trends position cafes within lifestyle and entertainment districts, and this lets you enjoy events, festivals, and curated clusters of food and beverage.
Residential communities
Areas such as Jumeirah, Al Barsha, Jumeirah Village Circle and the Dubai Hills Estate have cheaper rent and the opportunity to establish a loyal customer base locally. These regions continue to expand, with new housing and communities completing in 2026, which will ensure constant demand in cafes that cater to residents, students, and remote workers.
Earnings might be less than those in malls everyday, but you can make it a relaxed, community-oriented place. These are ideal to hold events, loyalty club and regular offers so that people will return for more.
Tourist and leisure zones
Different localities close to Dubai Marina Walk, JBR Beach, and other waterfront promenades are expected to receive a significant number of visitors in 2026. Cafes located here enjoy the advantage of walk-in visitors in the form of hotels, cruise visitors, and day trippers, particularly in the colder seasons.
During the summer, demand may be low, hence you need to ensure that you adjust your menu, prices and opening schedule to suit changes in the seasons. The level of competition is also high and there are numerous famous retail chains and international brands. To be able to win over new customers, a clear identity and excellent service is required.
Note: Compliance Requirement of Municipality
Your premises should comply with certain Dubai Municipality requirements such as the required ceiling height, ventilation, dedicated storage space, and equipment space. The utensils, vegetables, and meat require three separate washing facilities in case of non-vegetarian food.
Dubai Municipality enforces comprehensive food safety regulations based on international HACCP standards. Compliance with these requirements makes the basis of your operating permission.
Food Safety Management Systems
All food establishments must implement documented food safety programmes identifying hazards and control measures. Third-party auditors approved by Dubai Municipality must audit your programme at specified frequencies.
Food staff must be trained and have Person In Charge (PIC) certifications. The FoodWatch system of Dubai Municipality is used to manage registrations, supplier verification, and compliance monitoring.
Hygiene and Operational Requirements
Temperature recording for refrigeration, cooking, and holding must be done on a regular basis. Preventing cross-contamination by having separate preparation areas and following storage procedures is required.
Cleaning timetables, pest control agreements with certified suppliers, and garbage collection should be in line with municipal specifications. Maintenance contracts on vital equipment which are signed annually will ensure compliance.
The process of establishing a coffee shop in Dubai involves the following steps:
Step One: Initial Planning
Start with market research and business planning. Reserve your trade name through DET and gather required documentation, which include passport copies and proof of capital.
Step Two: License Application and Premises
Submit initial approval applications to DET. Identify suitable premises meeting municipality requirements and register your lease through Ejari.
Step Three: Design Approvals
Engage consultants to design your kitchen layout. Submit architectural and MEP plans showing ventilation, food workflows, and equipment placement. Apply for Food Safety Department approval simultaneously.
Step Four: Fit-Out and Installation
Commence fit-out work following approved plans. Install equipment ensuring fire safety compliance. Arrange Civil Defence inspection.
Step Five: Final Inspections
Request final inspection from Dubai Municipality. Complete staff visa applications and food safety training. Pay final fees and collect your trade license.
The process of obtaining your license is the start of a series of compliance requirements. Food licenses and trade licenses have to be renewed on an annual basis. Dubai Municipality carries out regular inspections to ensure that there is compliance with food safety. It is also essential to keep the records of the temperature logs, cleaning schedules, and the training of the staff to facilitate the inspections.
Companies that have a turnover of over AED 375,000 are required to be registered under VAT. All businesses are required to register under corporate tax. These are staff visas that must be renewed, and there is legal obligation of employees to be covered by medical insurance.
Accurate cost estimation prevents working capital shortages during setup. Total investment varies based on location, concept, and scale.
| Category | Item / Detail | Estimated Cost Range (AED) |
|---|---|---|
| Licensing & Regulatory Fees | Trade license fee | 10,000 – 25,000 |
| Food safety approval (Dubai Municipality, annual) | 10,000 – 15,000 | |
| Additional municipality approvals | 5,000 – 10,000 | |
| Ejari registration | 195 – 500 | |
| Trade name reservation | 620 – 750 | |
| Premises & Fit Out | Annual rent (cafe sized space) | 60,000 – 200,000+ |
| Security deposit + first quarter payment | Varies by rent level | |
| Basic interior fit out | 30,000 – 60,000 | |
| Premium interior fit out | 60,000 – 100,000+ | |
| Equipment & Inventory | Commercial espresso machine | 15,000 – 50,000+ |
| Grinders, refrigeration, display cases, POS system | Included in equipment budget | |
| Additional kitchen equipment, furniture, crockery, appliances | 30,000 – 60,000 | |
| Initial inventory (coffee beans, milk, food, packaging) | 10,000 – 20,000 | |
| Staffing & Employment | Monthly salaries (manager, baristas, cashier, cleaner) | 15,000 – 30,000 |
| Visa processing per employee (medical + Emirates ID) | 3,000 – 5,000 | |
| Establishment Card (GDRFA) to hire foreign staff | Onetime fee (varies by company size) |
Starting a coffee shop in Dubai offers real business potential in an expanding market worth USD 3.2 billion and more. The effective establishment of the coffee shop relies on proper preparations in terms of licensing, financial planning, and compliance with regulations.
Business owners should allocate between AED 200,000 and AED 800,000 based on the idea and the place. This entire process takes anywhere from one week to a couple of weeks for the entire licensing process.
Engaging professional business setup consultants like Stratrich Consulting simplifies approvals and saves time and money on undue delays. With the right planning, capitalisation and adherence to the food safety standards, your coffee shop will be successful within the rapidly changing hospitality industry of Dubai.
