Foreign investors can make high profits by setting up a Food and Beverages (F&B) business in Dubai in 2023. Available statistics indicate that the UAE is fertile land for starting a business in the F&B sector. A report by Statista says that revenue from the operations of food outlets in the UAE is likely to reach around USD 8.9 billion by 2025. The country’s young and growing population, high GDP, citizens and residents with high disposable incomes, the government’s focus on diversification and food sufficiency, an increasing number of restaurants, fast-food chains, and food delivery services etc. make the environment of business setup in Dubai highly conducive to the F&B sector.
However, foreign investors who plan to set up a food business in Dubai need to understand the local laws and regulations. This issue can be resolved by availing the expertise of business setup consultants in Dubai. You should also be aware of the different business activities and opportunities available in the UAE F&B sector.
The following blog will walk you through some of the top business ideas in the F&B sector. Keep reading to know more:
Food manufacturing business
You can set up a food manufacturing company in Dubai mainland or any of the free zones. You need to obtain an industrial license from the Department of Economy and Tourism (DET) or any of the free zone authorities to start the manufacturing business. The most popular activities related to food manufacturing include the manufacturing of Natural and Organic Food, Food Supplements, Powdered Food Products, Dairy Products, Vegetable Oils, Fruit Concentrates, Meat Products, Poultry Products etc.
Since it is easy to source raw materials from the region as well as Africa, Asia and Europe, you can manufacture food in large volumes. A food-manufacturing license may require approvals and permits from authorities such as Dubai Municipality. Business setup consultants in Dubai can assist you with the necessary approvals and permits.
Foodstuff trading business
Foodstuff trading is one of the most popular business activities practised by foreign investors. The demand for setting up a foodstuff trading business in Dubai is high because of the lack of agricultural development and cultivated land and the extremely hot weather in the UAE. Moreover, you won’t struggle to find customers as the country is home to people from almost all the countries in the world.
According to Euromonitor, UAE consumer food service sales value reached AED58.4 billion in 2022. Fresh food sales are anticipated to grow at a CAGR of 4.9 percent between 2022 and 2027, while packaged food will see a predicted growth of about 3.9 percent during the same period. Business setup advisers in Dubai can help you obtain a foodstuff-trading license from either DET or any of the free zones.
Cloud kitchen business
Registering a cloud kitchen business in Dubai is a rage among the new-age investors that picked up pace after the pandemic. A cloud kitchen, also known as a ghost kitchen or virtual kitchen, is a large food production facility with open kitchens that can be shared by multiple companies. These companies notably lack a dine-in space for customers and only offer delivery options via partnerships with food aggregators.
New-age entrepreneurs prefer to set up a cloud kitchen business in Dubai as it comes with low investment. By opening a cloud kitchen business in Dubai, you can save the cost of leasing a space for a restaurant, hiring staff to serve clients and managing the place and maintaining the outlet. You can start a cloud kitchen either in a free zone or on the mainland.
Food Truck Business
Being an international tourism hub, Dubai offers ample opportunities for those investing in a food truck business. If you glance around, you can see food trucks in important locations such as free zones, business avenues, amusement parks, exhibition venues, farmers’ markets etc. While some of these trucks serve simple items like ice cream or shawarma, others sell roast and steaks.
Starting a food truck business in Dubai is ideal for entrepreneurs with a love for food but not enough capital to set up a full-fledged restaurant. The authorities do not allow cooking inside a food truck and you need to source your food from a restaurant or a cloud kitchen. Furthermore, you may need to obtain permits from Dubai Municipality, Dubai Electricity and Water Authority (DEWA), and Dubai RTA. Business setup consultants in Dubai can guide you on the approvals and permits.
Restaurant/cafeteria/bakery
Restaurants, cafeterias, coffee shops and bakeries are some of the most popular F&B business activities in Dubai. With an adequate budget, supportive partners, and a prime location, you can start your restaurant business in Dubai or set up a cafeteria. If you start a restaurant in Dubai mainland, you may need to obtain approval from Dubai Municipality. Company setup consultants in Dubai can guide you further.
Consult with the Best Business Setup Consultants in Dubai, UAE
Starting an F& B business in Dubai may appear simple on paper. However, some requirements associated with the process of company incorporation in Dubai mainland may seem complex to foreign investors. You may struggle with Dubai Municipality approvals, visa process and bank account opening etc. However, business setup consultants in Dubai such as Jitendra Business Consultants (JBC) can simplify the process for you.
JBC has more than 21 years of experience and we are one of the top providers of business setup services in Dubai. Moreover, we offer value-added services such as bank account opening, PRO services, and compliance services related to the UAE Corporate Tax, Economic Substance Regulations (ESR), Anti-Money Laundering (AML) and Ultimate Beneficial Ownership (UBO) etc.
