Dubai is one of the most profitable places for entrepreneurs who want to open a coffee shop in Dubai. The city has a strong café culture, a large expatriate community, and millions of tourists every year. People in Dubai enjoy premium coffee, specialty brews, and unique café experiences, making coffee shops a popular and stable business choice. Whether you want to run a small takeaway counter or a large sit-in café, Dubai offers a supportive environment, modern regulations, and clear steps to help you launch your business successfully.
Running a Coffee Shop Business in Dubai also gives you long-term growth opportunities because demand for high-quality drinks and café spaces continues to increase. With the right strategy, proper licenses, and a good location, starting a café can become a profitable and rewarding project.
What Is Required to Start a Coffee Shop in Dubai?
Before you start a coffee shop in Dubai, you must understand the setup process, legal approvals, and the two essential licenses. These steps ensure your shop meets Dubai’s safety standards, hygiene rules, and business regulations.
Important Licensing Rule:
There are two licenses you must obtain when Starting any food business in Dubai, including a coffee shop:
- Coffee Shop License – Issued by the Department of Economic Development (DED) for mainland businesses or by the relevant free zone authority, depending on where your shop is located.
- Food License – Issued by the Food Safety Department at Dubai Municipality. This license is only approved after the Food Control Department reviews and approves your coffee shop’s proposed kitchen layout, drainage, storage systems, and hygiene plan.
Only after receiving both approvals can you legally operate a coffee shop.
Now let’s explore the full setup process in detail.
Why Open a Coffee Shop in Dubai?
Dubai’s café culture makes setting up a coffee shop attractive for local and foreign investors. The city’s lifestyle, tourism flow, and appetite for premium beverages create strong daily demand. Coffee shops serve a wide variety of customers—students, office workers, travelers, families, and remote workers.
Strong and Growing Market Demand
Coffee consumption in Dubai increases each year, driven by young professionals, expats, and tourists. Specialty coffee, cold brews, and unique café themes are extremely popular, giving entrepreneurs many ways to stand out. The growing population supports stable business growth all year.
Ideal Urban and Commercial Environment
Dubai offers malls, commercial towers, business districts, beachfronts, and residential communities where coffee shops thrive. Many new areas continue to develop, giving entrepreneurs more options to launch their café in a high-traffic zone.
High Profit Margins for Coffee-Based Businesses
Coffee has one of the highest profit margins in the food industry. With the right menu and cost control, coffee shops can create steady and predictable monthly revenue.
Supportive Government Regulations
Dubai’s business policies are stable and investor-friendly. Café owners benefit from clear guidelines, fast approvals, and multiple retail locations across the city.
Strong Brand and Franchise Potential
Once you build a strong brand, it becomes easy to replicate your café model across different Dubai communities or expand regionally.
Step-by-Step Process to Start a Coffee Shop in Dubai
Starting a café becomes simpler when each step is completed in order. The process covers selecting your business type, choosing a location, securing approvals, and completing licensing.
Step 1 – Choose Your Business Structure
Investors can select from different structures when setting up their coffee shop. Most new owners choose an LLC structure for flexibility, but free zone setups are also possible if you prefer full control and lower setup costs. Selecting the right structure helps meet long-term business goals.
Step 2 – Choose Mainland or Free Zone
If you plan to operate throughout Dubai and serve customers in a physical café, a mainland license is the best option. Free zones are suitable for production kitchens, roasting units, or online delivery cafés but limit where you can serve customers directly.
Step 3 – Register Your Trade Name
Choose a unique name that fits your brand identity. The name should follow UAE trade name rules and should not include restricted words. Once approved, this name appears on your coffee shop documents and business license.
Step 4 – Secure Your Location
Your coffee shop must have a commercial space that meets Dubai Municipality’s food-safety layout rules. The kitchen plan, storage rooms, drainage system, and ventilation must follow guidelines before approval.
Step 5 – Submit Your Initial Approval
Before applying for the main licenses, submit the initial approval request to confirm your business activity, owner details, and business structure.
Step 6 – Obtain the Coffee Shop License
Your Coffee Shop License in Dubai is issued once all initial approvals and documents are verified. This license is mandatory to operate a café legally.
Step 7 – Apply for the Food License
Before you start operations, apply for your food license, which requires a full inspection of your kitchen layout and hygiene standards by Dubai Municipality. This ensures your café meets the required safety regulations.
Step 8 – Apply for Staff and Owner Visas
After receiving your license, you may apply for owner and employee visas. Your team must also follow food-handling requirements set by Dubai authorities.
Documents Required to Start a Coffee Shop in Dubai
To legally open a café in Dubai, you must prepare several documents for identity verification, business approval, food safety compliance, and tenancy confirmation. These documents help authorities assess your business structure, kitchen layout, and operational plan before issuing the required licenses.
Passport Copies of All Owners
All business partners must provide clear and valid passport copies. These documents help verify identity, nationality, and eligibility for business registration in Dubai’s licensing system.
Passport-Size Photographs
Recent passport-size photos are needed for your license file and visa applications. These images must meet the UAE’s official photo guidelines for documentation and immigration use.
Entry Stamp or Residence Visa (If Applicable)
If you are already in Dubai, you must provide your entry stamp or residence visa copy. This confirms your legal presence and supports future visa processing for your café.
Business Plan
Your business plan should include your café concept, menu ideas, equipment needs, budget, projected costs, and kitchen workflow. Authorities use this plan to ensure your café is structured for safe operations.
Ejari (Tenancy Contract)
A valid Ejari (attested tenancy contract) is required for your coffee shop premises. This confirms your legal commercial space and must match the location submitted during license approval.
Memorandum of Association (MOA)
If your business has more than one owner, you must prepare a Memorandum of Association (MoA) defining the ownership percentages, partner roles, and business responsibilities clearly and legally.
Layout Approval from Dubai Municipality
Dubai Municipality must approve your kitchen layout, equipment placement, ventilation system, and food safety design. This approval ensures your café meets hygiene standards before you apply for a food license.
Requirements for a Coffee Shop License in Dubai
To legally operate a café in Dubai, owners must follow specific food safety guidelines, licensing procedures, and regulatory approvals. These requirements ensure that every coffee shop maintains high hygiene standards, proper equipment setup, and safe food-handling practices before opening to the public.
Location Must Meet Food-Safety Rules
Your coffee shop must follow approved kitchen layout standards, including proper ventilation, drainage, hand-washing stations, and safe equipment placement. These rules ensure the café can store, prepare, and serve beverages safely.
Two Mandatory Licenses
Every café must secure both a coffee shop license and a food license before operations begin. Without these two approvals, your business cannot legally open or serve beverages to customers.
Approval from Food Control Department
The Food Control Department must review and approve your kitchen layout, workflow, and sanitation plan before you apply for your food license. This step ensures your café meets Dubai’s safety standards.
Compliance with Hygiene and Employee Training
All food handlers must complete approved hygiene training and follow daily sanitary procedures. Dubai authorities require staff to understand safe food practices to protect customer health and maintain café cleanliness.
Compliance with Equipment and Storage Regulations
Your equipment must meet safety standards for hot and cold storage, beverage preparation, and cleaning. Proper storage helps maintain product quality and ensures compliance with Dubai’s food safety requirements.
Cost of Coffee Shop License in Dubai
The overall cost of opening a coffee shop in Dubai depends on the café size, interior theme, location, kitchen specifications, equipment quality, and staffing needs. A small neighborhood café requires a lower budget, while a specialty or premium coffee shop in a busy commercial area may involve higher investment. Below is a clear breakdown of typical expenses entrepreneurs should plan for when launching a coffee shop in Dubai.
Licensing Costs
Licensing expenses include your Trade License: AED 10,000 to AED 15,000 and Food License (Dubai Municipality): AED 10,000, along with inspections and approvals. Exact costs depend on your jurisdiction and business structure.
Rental Costs
Rent varies significantly by location. High-traffic areas such as Downtown Dubai, Marina, and JLT require a larger budget, while community zones offer more affordable rental options for new café owners.
Equipment Costs
Opening a coffee shop requires professional machines, including espresso makers, grinders, chillers, ovens, and display units. Furniture, counters, and service tools also contribute to the investment required for smooth operations.
Staff Costs
Your café must hire trained baristas, cashiers, and kitchen staff who meet UAE labor requirements. Staff salaries, visa processing, and training expenses are essential budgeting components for long-term operations.
Additional Costs
Extra expenses include branding, interior design, signage, packaging, marketing, and inventory. These elements help build your coffee shop’s identity and improve the customer experience, especially in competitive markets.
Benefits of Opening a Coffee Shop in Dubai
Opening a coffee shop in Dubai is an attractive opportunity for new and experienced entrepreneurs because the city offers a strong customer base, fast-growing café culture, and a supportive business environment. With high purchasing power, strong tourism, and demand for specialty beverages, Dubai allows coffee shop owners to build profitable, scalable, and long-lasting businesses.
High Coffee Consumption
Dubai’s residents, professionals, and tourists consume coffee daily, creating reliable demand for premium beverages and specialty brews. This steady consumption supports consistent revenue and encourages strong customer loyalty for well-positioned cafés.
Supportive Business Environment
Dubai provides clear regulations, business-friendly policies, and smooth licensing procedures that make it easier for entrepreneurs to open and run a café. The city’s stable economy also encourages long-term investment in the food and beverage sector.
Strong Tourism Footfall
Millions of tourists visit Dubai every year, increasing foot traffic in cafés, malls, and commercial areas. This steady tourism flow helps coffee shops maintain high customer volume throughout the year, especially in prime locations.
Attractive Profit Margins
Coffee-based drinks have some of the highest profit margins in the food industry. With proper pricing, quality ingredients, and efficient operations, cafés can achieve strong profitability and sustainable financial growth.
Opportunity for Expansion
Successful coffee shops in Dubai often expand into multiple branches, franchises, or takeaway concepts. The city’s diverse communities and continuously growing developments offer many opportunities for brand growth and market expansion.
Start Your Coffee Shop Business in Dubai With DIAC
Starting any food business in Dubai becomes much easier when you work with professionals who understand the licensing rules, inspections, food-safety approvals, and business structure requirements. DIAC’s expert team guides you through every step from concept selection to documentation, approvals, licensing, visas, and setting up your commercial space.
If you want the smoothest and fastest process with clear compliance from day one, the best business setup consultants in Dubai are ready to assist you.
Launch your coffee shop with confidence DIAC handles everything so you can focus on your brand, menu, and customers. Contact us to begin your setup journey today.
