How to Open a Restaurant in Dubai

Benefits of opening a restaurant in Dubai

Opening a restaurant in Dubai offers a unique combination of financial opportunity, global visibility, and a stable, business-friendly regulatory environment. As of 2025, Dubai remains one of the world’s most promising locations for hospitality businesses, especially for those planning to start a restaurant business in Dubai targeting both residents and international tourists. Here's a comprehensive look at why the emirate continues to attract entrepreneurs in the food and beverage industry.

1. A booming F&B market driven by tourism and expat demand

Dubai’s strategic location as a hub between East and West brings in over 17 million tourists annually, with forecasts suggesting steady growth beyond 2025. This inflow fuels an ever-growing demand for diverse dining experiences, ranging from fast casual to luxury fine dining. The city also has a strong and affluent expat population that makes up more than 80% of its residents — creating a stable, year-round customer base with varied tastes and spending power. For entrepreneurs exploring Business Setup in Dubai, the thriving F&B sector presents a compelling opportunity to launch and grow a restaurant brand in one of the most dynamic markets in the world.

As a result, Dubai’s food sector is not limited to seasonal peaks. Unlike many global markets where the restaurant industry faces demand fluctuations, starting a restaurant in Dubai means you can serve a multicultural customer base 365 days a year. The UAE’s increasing number of food festivals, gourmet events, and culinary tourism programs further expand visibility for new restaurants.

2. Favorable business and tax environment

Dubai is consistently ranked as one of the easiest cities in the Middle East for doing business. There is no personal income tax, and for most small and medium-sized food businesses, the license cost in Dubai is lower than in other global metropolises. Moreover, the UAE’s double taxation avoidance agreements with over 130 countries provide added protection and efficiency for international investors.

In 2025, entrepreneurs who open a restaurant in Dubai also benefit from clear government regulations, streamlined licensing procedures, and digital tools that make it easier to start a restaurant business in Dubai even remotely. The Department of Economy and Tourism (DET) and Dubai Municipality work together to ensure fast-track permit systems, reducing red tape for investors.

3. Diverse population and openness to international cuisines

From Japanese sushi bars in Dubai Marina to South African grills in Al Barsha and vegan cafes in Downtown, the city’s F&B landscape is one of the most cosmopolitan in the world. If you are wondering whether you can open a restaurant in a niche category — be it plant-based, keto, ethnic fusion, or even a dessert-only concept — the answer is yes. Dubai’s diners are adventurous, brand-conscious, and social media–driven. That makes it one of the best global test markets for food trends and scalable franchise models.

For restaurateurs, this means there’s room for experimentation, differentiation, and identifying a Unique Selling Proposition (USP) that can stand out. Whether you target delivery-first models, immersive dine-in experiences, or hybrid concepts, Dubai offers the infrastructure and appetite to support it.

4. High ROI potential and business scalability

Many restaurateurs choose Dubai not only for a first outlet but as a launchpad for expansion across the GCC. Opening a restaurant in Dubai gives you access to a modern logistics network, world-class suppliers, and hospitality professionals from around the world. With the right business plan, a well-selected restaurant location in Dubai, and smart positioning, it’s possible to break even within 12 to 18 months, depending on concept and size.

Moreover, thanks to free trade zones and flexible ownership laws (including full foreign ownership on the mainland), it is now easier than ever to scale your restaurant business across multiple Emirates or even export your concept internationally. In short, Dubai is no longer just a dining destination — it’s a food brand development ecosystem.

5. Tech-forward infrastructure and delivery market

Dubai is a global leader in smart city infrastructure. From AI-powered food delivery platforms to cloud kitchen hubs and fully digital POS systems, the city encourages F&B innovation. If you're planning on starting a restaurant with a strong focus on delivery or takeaway, you’ll find ready-to-use cloud kitchen facilities, third-party aggregators, and an urban customer base that prefers app-based ordering.

In fact, the opening of a restaurant no longer depends solely on foot traffic. With an estimated 60% of food orders happening online, especially in high-density areas like Business Bay and JLT, restaurants can thrive without massive dine-in capacity. Tech-savvy entrepreneurs can easily tap into the virtual brand market, optimize delivery operations, and experiment with data-driven menus.

6. Government support and ease of entry

The UAE’s long-term visa policies, such as the Golden Visa and freelance permits, make it easier for culinary professionals, chefs, and entrepreneurs to establish roots in Dubai. If you are a foreigner looking to start a restaurant business in Dubai, you are no longer required to have a local sponsor — provided you operate in the right jurisdiction and comply with licensing.

There is also growing government support for sustainability and food innovation. New initiatives focus on local sourcing, waste reduction, and alternative proteins, aligning the restaurant business in Dubai with global ESG trends.

Types of restaurant licenses in Dubai

When planning to open a restaurant in Dubai, understanding the types of licenses required is crucial. Each license type defines your operational scope, and failing to obtain the correct one can lead to costly delays or fines. As of 2025, starting a restaurant business in Dubai typically involves more than one license, and knowing how they work together can simplify the process considerably.

Trade license

A trade license is the foundation of any business in Dubai, including restaurants. Issued by the Department of Economy and Tourism (DET) for mainland establishments, or by the respective Free Zone authority if you operate in a zone like Dubai Multi Commodities Centre (DMCC) or Dubai Silicon Oasis (DSO), the trade license legally authorizes your company to conduct commercial activity.

For restaurants, this license falls under the “commercial” category, typically listed as a “Restaurant and Coffee Shop License.” Without it, you cannot sign a lease, open a bank account, or legally market your brand.

In 2025, the license cost in Dubai for a trade license varies depending on:

• Your chosen jurisdiction (mainland vs free zone),
• The number of shareholders,
• Whether or not you will have delivery services or alcohol sales,
• Additional activities (e.g., catering, cloud kitchen operations).

On average, expect to budget AED 10,000–25,000 annually for your trade license, excluding location rental or staffing.

Food safety license

Alongside the trade license, every restaurant must obtain a food safety license from the Dubai Municipality. This certificate confirms that your kitchen, food handling practices, and overall hygiene meet UAE food safety regulations. It is required whether you are opening a restaurant with dine-in services or operating a cloud kitchen.

The process includes:

• Submitting a layout plan for kitchen and storage areas (see section 3.4 for details),
• Complying with structural requirements like proper ventilation, drainage, and pest control,
• Attending food handler training for all staff involved in preparation or service.

As part of their compliance checks, Dubai authorities may also perform periodic inspections of your facility to ensure you adhere to standards. The food license must be renewed annually and linked to your trade license to remain valid.

Special permits (alcohol, delivery, etc.)

Depending on your concept, you may also need special permits in addition to the main business and food license. These include:

• Alcohol license (for restaurants serving alcohol). Issued by the Dubai Police and licensed distributors such as African+Eastern or Maritime & Mercantile International (MMI), this license is available only in certain hotel locations or approved hospitality zones.
• Delivery permit. If you plan to offer delivery services — either independently or through platforms like Talabat or Deliveroo — you may need to obtain specific approvals from the Roads and Transport Authority (RTA) and ensure your delivery staff meet road safety regulations.
• Shisha permit. For restaurants offering shisha (hookah), you’ll need to meet specific health and ventilation criteria and apply through the Dubai Municipality with a separate request.
• Outdoor seating permit. If your restaurant has a terrace or plans to use public space for additional tables, you must apply for approval, including layout and safety plans.

Each of these permits ties into your core restaurant license and may require site inspections, supporting documents, and additional fees.

Step-by-step process to start your restaurant in Dubai

Whether you are a first-time investor or a seasoned entrepreneur, following a structured process is essential when planning to open a restaurant in Dubai. The city offers an organized yet detail-sensitive framework for launching food ventures. Below is a comprehensive guide to help you confidently navigate every stage, from ideation to launch.

Step 1. Choose your business model and concept

Before licenses and kitchen layouts come into play, the foundation of a successful restaurant business in Dubai begins with a solid business plan and a clear vision of what kind of restaurant you want to operate.

Selecting your restaurant concept and Unique Selling Proposition (USP)

Dubai’s food scene is competitive, diverse, and fast-evolving. To stand out, your concept must resonate with both the local culture and the global traveler. Will you launch a fine dining restaurant, a health-conscious grab-and-go, a themed café, or a delivery-only kitchen?

Your Unique Selling Proposition (USP) could be a signature dish, exceptional location, immersive décor, sustainable sourcing, or even a tech-forward ordering system. Make sure to define:

• Target customer base (tourists, residents, business professionals, families),
• Price point (budget, mid-range, premium),
• Cuisine category and innovation angle,
• Delivery/dine-in model ratio.

Having a clear USP helps with brand identity, menu design, location selection, and marketing later on.

Step 2. Select the right location and jurisdiction

Location can make or break a restaurant in Dubai. While foot traffic matters, success also depends on choosing the right licensing authority — either mainland or free zone — and securing premises in the ideal neighborhood.

Mainland vs free zone

Here’s a comparison of these two main jurisdictions:

If your focus is on delivery, starting a restaurant in a free zone cloud kitchen facility may save on rent and overhead. For dine-in or high-visibility outlets, mainland is often preferable.

Best areas for restaurants in Dubai

The best restaurant locations in Dubai vary depending on your concept and target audience. Here are a few top areas:

• Downtown Dubai: ideal for upscale dining with strong tourist and resident traffic.
• Dubai Marina/JBR: excellent for beach-side, social media–friendly cafés and casual eateries.
• Business Bay: great for lunch-focused bistros and delivery-heavy models.
• Jumeirah/Al Wasl: popular with families and locals; good for mid-range cuisine.
• Deira/Karama: best for affordable, high-volume ethnic food options.

Choose your location based on rent, accessibility, parking, zoning approvals, and proximity to your ideal customer base.

Step 3. Obtain necessary licenses and permits

As covered in section 2, securing your trade license, food license, and any special permits is a critical step. Start by finalizing your company name, concept, and legal structure, then move on to application and documentation.

Trade license

To reiterate: the trade license is your core business license. It must be aligned with your activity (e.g., "restaurant and cafeteria") and obtained before you sign any commercial lease or hire staff.

Food safety license

Issued by Dubai Municipality, this license confirms your kitchen’s compliance with safety regulations. Submit your kitchen plan, complete food handler training, and prepare for inspection.

Special permits (alcohol, delivery, etc.)

Depending on your model, apply for additional permits such as:

• Alcohol service (if in licensed hotel zone),
• Delivery operations,
• Outdoor dining,
• Shisha or entertainment elements.

These are linked to your main restaurant license in Dubai and must be renewed regularly.

Step 4. Design and set up your restaurant

Interior layout, kitchen equipment, and ambiance all contribute to operational efficiency and customer experience.

Architectural guidelines and interior design

Your interior design must align with the approved kitchen plan. Submit the layout to the Dubai Municipality before any buildout begins. Key compliance elements include:

• Proper ventilation and drainage,
• Pest control infrastructure,
• Accessible fire exits,
• Clearly marked zones for food preparation and storage.

Hiring a licensed contractor with experience in Dubai’s F&B sector is highly recommended.

Equipment and technology considerations

Your kitchen equipment must meet safety and energy standards. Depending on your concept, you may need:

• Cooking ranges, fryers, ovens, and chillers,
• Food processors, blenders, mixers,
• Smart POS systems and kitchen display screens,
• Delivery integration software.

Technology also plays a role in reservations, payments, customer feedback, and operational analytics. Investing early will reduce errors and increase ROI.

Step 5. Hire qualified staff

Dubai’s labor market is diverse, and the government requires restaurants to register employees with the Ministry of Human Resources and Emiratisation (MOHRE). All staff must receive:

• Employment visas,
• Medical tests,
• Food handling certification (for kitchen and service staff).

When starting a restaurant, consider hiring:

• A certified chef or culinary head,
• Service team with multilingual skills,
• Restaurant manager with UAE experience.

Note: visa quotas and nationality restrictions may apply depending on your legal setup.

Step 6. Launch your restaurant

A successful launch can create instant visibility and help you build loyalty from day one.

Marketing strategies for opening

Digital marketing is key. Consider:

• Social media teasers and countdowns,
• Google Maps and Zomato/Foursquare listings,
• Influencer previews,
• Pre-opening press coverage.

Don’t forget offline marketing: flyers, banners, and direct community engagement still work in Dubai’s multicultural neighborhoods.

Soft launch vs grand opening

A soft launch allows you to test systems, gather early feedback, and make tweaks before full-scale operations. Typically, restaurants invite friends, influencers, or limited customers for 1–2 weeks.

A grand opening is your formal market entry. Plan events, promo menus, and a strong brand presence across platforms. The opening of a restaurant is as much about experience as it is about food.

Cost to open a restaurant in Dubai (2025)

Understanding the full cost of launching a restaurant in Dubai is one of the most important parts of building your business plan. Expenses can vary significantly depending on your concept, size, location, and licensing model, but having a clear breakdown helps avoid surprises and prepare for scalability.

Below is a practical overview of what to expect when budgeting to start a restaurant in Dubai in 2025.

Estimated startup costs

Note: These are average ranges. A small delivery-only kitchen will have a much lower cost than a luxury dine-in outlet in Downtown Dubai. The size of your restaurant location in Dubai, seating capacity, and equipment choices heavily influence your financial outlay.

Ongoing operational expenses

After the opening of a restaurant, monthly operational expenses include:

• Rent (location-dependent): 10,000 – 50,000 AED/month
• Salaries for staff: varies based on team size
• Utilities: 2,000 – 8,000 AED/month
• Food and raw materials (COGS): typically 25%–35% of revenue
• Marketing: 5%–10% of monthly revenue
• Licensing renewals: annual license in Dubai renewal fees (trade, food, delivery permits)

It’s crucial to account for seasonal shifts and ensure your pricing strategy covers fixed and variable costs. Maintaining a 12-month cash flow plan will help protect the business in its early stages.

Ways to reduce initial costs

If you're concerned about high startup investment, consider the following:

• Shared kitchen facilities: ideal for delivery-first models. Significantly lower kitchen equipment costs.
• Start small: launch with a kiosk or food truck and scale up. Lower licensing and fit-out expenses.
• Cloud kitchen partnerships: no dine-in costs, reduced marketing needs.
• Location optimization: choose areas with lower rent but good delivery reach (like Al Qusais, International City).

Also, consider hiring a local consultancy to handle documentation and reduce the risk of rejections or fines. This can streamline the license trade process and lower compliance-related expenses.

License and renewal fees summary

Having a good grasp of the license cost in Dubai allows you to allocate resources efficiently and avoid unplanned expenses.

Final thoughts

If you're looking for how to start a restaurant in Dubai, this 2025 guide covers everything — from licensing and concept design to location selection, budgeting, and compliance. With a clearly defined restaurant business strategy, attention to detail, and the right team, Dubai offers one of the best environments in the world for opening a restaurant — whether it's your first or your fifth.

Whether you're exploring a niche cuisine, a delivery-only model, or a high-end fine dining experience, the opportunity is real. Focus on compliance, build a strong brand, and consider the many factors that influence long-term growth. Dubai's dynamic food culture is ready for your vision — are you?

FAQs

• Is it profitable to open a restaurant in Dubai?

Yes — with the right business plan, location, and operating strategy, it can be highly profitable to open a restaurant in Dubai. The emirate offers strong margins due to its tax-friendly environment, a large and diverse customer base, and year-round tourism.

That said, profitability depends on factors to consider such as:

• Rent and fit-out costs,
• Licensing structure,
• Menu pricing and food cost control,
• Staff efficiency and retention,
• Delivery model vs dine-in revenue balance.

If you're careful about starting a restaurant with a lean model and scale wisely, break-even is often achieved within 12–18 months for small and mid-sized outlets.

• Can foreigners open a restaurant in Dubai?

Absolutely. Foreigners can fully own and open a restaurant in Dubai, whether as individuals or through a corporate entity. Since 2021, 100% foreign ownership is allowed in most sectors — including food and hospitality — under both mainland and free zone setups.

To start a restaurant business in Dubai, non-residents must:

• Choose a business structure (sole proprietorship, LLC, etc.)
• Apply for a trade license and food license
• Open a business bank account
• Apply for investor and staff visas

No local sponsor is required for most models, but working with a business consultant may simplify the process.

• What documents are required to start a restaurant in Dubai?

Here’s a list of key documents required to start a restaurant in Dubai:

1. Passport copies of all shareholders and manager(s),
2. Visa or entry permit for the owner (if setting up from abroad),
3. Trade name reservation from Dubai Economy and Tourism,
4. Memorandum of Association (MOA) for LLCs,
5. Lease agreement (Ejari) for restaurant premises,
6. Kitchen layout plan approved by Dubai Municipality,
7. Food safety certificate application,
8. Additional permits (alcohol, delivery, etc.), if applicable.

Each license in Dubai (whether it's a general trade license or a restaurant license) requires specific supporting documents, and all materials should be translated into Arabic if requested.