Why You Should Start a Salon Business in Dubai: Complete Guide

Dubai is known for its luxurious lifestyle, and its residents are among the wealthiest in the world. With a high standard of living, it's no surprise that people here—both locals and expatriates—place great importance on their appearance. In Dubai, maintaining a polished and fashionable look is almost a status symbol. From business executives to influencers, everyone is focused on grooming and beauty, leading to competition in the fashion and personal care industries.

The UAE is home to a diverse population of expatriates from all over the world, creating an environment with varied beauty care needs. Different nationalities bring different beauty standards and preferences, which opens up numerous opportunities for specialized services. Whether it's offering cosmetic treatments tailored to European, Asian, or Middle Eastern beauty trends, the market offers a broad range of niches to cater to.

This makes it the perfect place to launch a beauty salon business that focuses on quality and caters to an upscale clientele. Customers in Dubai are willing to spend on premium services, making the market highly lucrative if you position yourself correctly.

5 reasons to open a beauty salon in Dubai

1. The beauty care market is booming

With a growing population of expatriates, there is an increasing need for a wide range of beauty services that would fit various tastes and cultural preferences. If you can correctly identify your niche, choose a strategic location, and offer top-notch services, your salon has the potential to thrive. The market rewards those who can bring something unique or highly specialized, and there’s ample room for new players.

2. Popularity of beauty treatments

Beauty treatments in Dubai are not just a luxury; they are a lifestyle. Residents of the city frequently indulge in treatments ranging from basic grooming to advanced cosmetic procedures. Services such as facials, hair treatments, manicures, and more are in constant demand. With Dubai’s affluent population, many are willing to pay for high-end treatments, meaning that offering premium services can be a great strategy.

3. Reasonable setup costs

Starting a beauty salon in Dubai can be surprisingly cost-effective, especially if you work with business consultants who can guide you through the process. With assistance, you’ll be able to navigate the complexities of licensing, permits, and finding a suitable location, all while keeping costs in check.

4. A promising and growing market

The beauty industry in Dubai is expected to see significant growth in the coming years. The skincare segment alone was valued at AED 1.34 billion (USD 365.27 million) in 2022, and this figure is projected to reach AED 2.17 billion (USD 589.92 million) by 2030, with an annual growth rate of 6.18%. Beauty trends are always evolving, and Dubai residents are eager to try the latest treatments and products, making it a highly lucrative space for both established brands and new startups.

5. Tax benefits

One of the major advantages of opening a business in Dubai is the attractive tax environment. Personal income tax is 0%, allowing you to keep all your earnings. The corporate tax rate is just 9%, and the VAT is relatively low at 5%. Some taxes can be legally optimized.

Contact our business consultants, and we’ll tell you how to do this. By minimizing tax liabilities, you can reinvest more into your business, helping it grow faster and more sustainably.

Key considerations for establishing a profitable salon in Dubai

1. Do market research

This will help you understand the needs and preferences of your target audience, as well as identify gaps in the market that you can fill.

2. Determine your niche

Focus on a specific area of beauty care that aligns with market demand and your strengths. Whether it's luxury skincare, hair styling, or specialized treatments, having a clear niche will set your business apart from competitors.

3. Study competitors

Research existing salons in your chosen area to see what services they offer and at what price points. 

4. Prepare a solid business and financial plan

A well-thought-out business plan is crucial for securing financing and guiding your business decisions. Make sure your financial projections account for all initial costs and ongoing expenses to ensure long-term profitability.

5. Build a brand

Your brand is more than just a logo—it's the identity of your salon. Invest time in creating a brand that resonates with your target audience, from the design of your salon to the way you communicate with clients.

6. Generate a viable marketing strategy

A strong marketing strategy is essential to attract and retain clients. This could include digital marketing, partnerships with influencers, and local promotions to build your brand's presence.

7. Choose the right jurisdiction

Decide whether you want to set up in a free zone or on the mainland. For most salons, the mainland is a better option because it allows you to cater to local clients without restrictions on geographic operations.

8. Think of proper location

Choosing the right location can make or break your salon. Opt for areas near residential communities with easy access and high foot traffic to ensure convenience for your clients.

9. Purchase a professional license

Acquiring the correct professional license is a legal requirement in Dubai. Read more about the differences between a commercial and professional license.

10. Rent premises

Make sure the salon size and layout align with the services you plan to offer, and factor rental costs into your financial planning.

11. Procure high-quality equipment and beauty products

Invest in professional-grade equipment and top-quality beauty products to ensure client satisfaction. 

12. Comply with health and safety regulations

Dubai has strict health, safety, and hygiene protocols for beauty businesses. Ensure your salon adheres to these standards to avoid penalties and create a safe environment for your clients and staff.

13. Hire a professional team 

Your team is the backbone of your salon. Hire qualified professionals and invest in their continuous training to keep them updated on the latest beauty trends and techniques, and handle residence visa processes if they are expats.

14. Develop an intuitive booking system

A user-friendly booking system makes it easy for clients to schedule appointments and reduces no-shows. Offering online booking and reminders can enhance the customer experience and streamline operations.

15. Create a welcoming atmosphere and use promotions

A relaxing and inviting atmosphere will encourage clients to return. Attract new customers and reward loyalty through special promotions, introductory offers, or package deals.

Setup costs for a salon business in Dubai

Setting up a beauty salon requires a careful analysis of initial and ongoing costs. Here is a breakdown of salon license costs in Dubai:

1. Business license

A professional license for a beauty salon in Dubai + approvals will cost around 23,000 AED per year. You’ll need to renew it annually.

2. Rent of premises

Rent varies greatly depending on the location and size of the space. In high-demand areas, expect to pay between 60,000 to 150,000 AED per year for a suitable salon space. In case of a mainland setup the rental will need to be done before the license is issued.

3. Buying equipment and furniture

Initial costs for salon equipment, such as styling chairs, wash stations, beauty machines, and high-quality furniture, can range from 50,000 to 100,000 AED. The type of services you offer will dictate the specific equipment needed.

4. Hiring staff (salaries, insurance, visas)

Staff salaries depend on their level of expertise and the appointment. You’ll also need to cover visa fees and health insurance, which could cost an additional 10,000 to 15,000 AED per employee annually.

5. Marketing

To attract clients, you’ll need to invest in marketing. Digital marketing, social media ads, and promotional campaigns could cost anywhere from 5,000 to 20,000 AED initially, depending on the scale and channels you choose.

6. Approvals

Before opening, your salon must obtain various approvals, including health and safety clearances, which can add another 5,000 to 10,000 AED to your startup costs. These approvals ensure compliance with Dubai’s strict regulatory standards.

Rules and regulations for salon businesses in Dubai

Requirements for opening a salon:

1. You need a clear sign board for your salon. This isn’t just about branding; it’s a legal requirement to display your business name so potential clients can easily find you.
2. Before you finalize your salon location, you must obtain approval from the Dubai Municipality. This step ensures that your chosen site is zoned for business and meets all local regulations.
3. You’ll need to install effective ventilation and exhaust fans to ensure good air quality, especially in areas where chemical treatments are performed.
4. When setting up your salon, you need to adhere to specific spacing requirements. For instance, there should be a minimum distance of 1 meter between styling chairs to ensure comfort and privacy for your clients. Additionally, the ceiling height must be at least 2.3 meters.
5. All furniture and working spaces must be clean and tidy. 
6. Having a sink or wash basin is essential for various beauty treatments.
7. If you offer hair removal services, that area must be made from fireproof materials. This safety measure is important for minimizing risks, especially when using hot wax or other products.
8. Maintain a distance of 0.5 meters between walls and chairs to provide ample space for movement. 
9. For services like manicure, pedicure, and hair removal, you must designate a separate area that measures at least 2.5 meters by 1.5 meters.
10. All beauty and therapeutic equipment used in your salon must have approvals from the Dubai Health Authority. 
11. You’ll need to install a water heater in your salon. 

Selling cosmetics

If you're planning to sell cosmetics in your salon, there are several important regulations to keep in mind:

1. Ensure that all cosmetic products you sell meet safety standards set by the Dubai Health Authority. 
2. Each product must be properly labeled, including ingredients, usage instructions, and any warnings. 
3. Before selling any cosmetics, you must register the products with the relevant authorities. 
4. Obtain the necessary approvals for the cosmetics you intend to sell. This often involves submitting samples and documentation to regulatory bodies to verify safety and efficacy.
5. Be prepared to pay any required fees associated with product registration and approvals. 

Types of salons

When considering opening a salon in Dubai, it’s essential to understand the different types of salons based on ownership, service type, and registering authority. Here’s a breakdown:

By ownership

1. Own business
   Starting a brand new salon allows you to create your unique brand and design the space according to your vision. This option gives you complete control over your operations, marketing, and service offerings.
2. Franchise
   Investing in a franchise provides a ready-made business model and brand recognition. This option often comes with established support systems, training, and a proven track record, which can significantly reduce the risks associated with starting a new business.
3. Branch
   Opening a branch of an existing salon allows you to capitalize on an already successful business model. This option often provides immediate access to an existing customer base and brand loyalty, making it easier to attract clients from the start.

By service type

1. Men’s salons
   Men’s salons focus on grooming services specifically tailored for male clients. These salons may offer haircuts, beard trims, and specialized skincare treatments aimed at men.
2. Ladies’ salons
   Ladies’ salons cater exclusively to female clients, providing a range of services such as hairstyling, makeup, and spa treatments. 

Also, you can consider opening a salon for both men and women.

By care type

Your beauty salon can provide one of these services or a combination of them:

• Hair care
• Skincare
• Nail services
• Body treatments
• Waxing and hair removal
• Makeup services
• Massage and spa treatments

By registering authority

• Free zone
  Establishing a salon in a free zone comes with several advantages, including tax incentives and no currency restrictions. You can enjoy the possibility of a 0% corporate tax. But be aware of location restrictions and limited potential for growth, as well as poor visibility for attracting walk-in clients.
• Mainland
  Registering your salon on the mainland requires obtaining a license from the Department of Economic Development (DED) and may involve additional approvals and permits. This option offers more visibility and location freedom, making it easier to attract clients, but lacks the tax benefits and full currency freedom that free zones offer.

How to obtain a beauty salon license?

Here is a simple guide on steps you need to take for getting your beauty salon license:

1. Seek professional guidance. Start by consulting with experts who can provide tailored advice on the licensing process.
2. Choose the right jurisdiction. Decide whether to set up in a free zone or on the mainland based on your business needs.
3. Gather and submit required documents.
4. Select and register a trade name.
5. Obtain initial approval.
6. Apply for the salon license.
7. Secure necessary approvals and permits for specific services.
8. Rent a suitable location (in the mainland this must be done before the license is issued).
9. Obtain a tenancy contract and register with Ejari.
10. Collect your registration documents.
11. Apply for visas for yourself and your employees.
12. Open a business bank account.
13. Final Step
    Now you’re ready to launch your beauty salon! Remember to maintain accurate records, comply with UAE tax regulations, renew your licenses and visas as required, and uphold a strong company profile and reputation.

Documents for salon licenses

To apply for a salon license in Dubai, you'll need to prepare the following documents:

• Application form 
• Passports and visas of shareholders
• Trade name approval
• Copy of the Memorandum of Association
• Description of business activities and business plan
• Tenancy contract or mortgage documents
• Approval from Dubai Municipality Planning Section and Health and Safety Division

Get your salon license with Emirabiz

Navigating the process of obtaining a salon license in Dubai can be complex, but with professional assistance, it becomes much more manageable. Emirabiz is here to help you every step of the way, ensuring that you meet all legal requirements efficiently and effectively.

At Emirabiz, we understand the unique challenges and opportunities of a business setup in the UAE. By sharing your goals with us, you gain access to expert guidance on selecting the right registering authority for your salon, as well as assistance with purchasing your license and obtaining all necessary permits.

Our services extend beyond just licensing. We can also help you with visa applications, opening a business bank account, and maintaining accurate bookkeeping. Plus, we ensure that your salon remains compliant with UAE tax regulations, allowing you to focus on growing your business.

With Emirabiz by your side, you can confidently take the next steps in your entrepreneurial journey.