Dubai has emerged as one of the biggest trade centres, economic centres, and tourist centres in just a few decades. Increasing expat rate increasing tourism industries, and people’s interest in all types of cuisine all over the world has made the city a chef’s paradise for restaurant business start-ups. Renting a restaurant in Dubai is one of the finest methods for entry into this market. In this Dxboffplan article, we are going to inform you about all the processes, cost, and licenses for opening a rental restaurant in Dubai.
One of the world’s fastest-growing cities for lifestyle, business, and tourism is Dubai. Its unique cultural diversity has also resulted in staggering demand for world cuisine. A welcoming climate for restaurant start-ups has been made secure by UAE authorities. The government has ensured favorable infrastructures, liberal investors’ law, and specific facilities for foreigners. UAE Free zones, modern transportation systems, high purchasing power, and economic security are some decisive reasons why Dubai is viable for investment in the soft drink and food industry. For numerous people planning new start-ups for businesses in Dubai, restaurant start-ups are regarded as a highly lucrative and diversified concept. Penetration into Dubai’s growing yet competitive market needs serious setting up for brand presence and ensuring stable revenue.
It is rather a big decisions to start a restaurant in Dubai, as you need to purchase or lease commercial property. In the majority of cases, leasing a restaurant in Dubai is cheaper as well as a sensible option compared to purchasing. These are the reasons why one should lease a place:
Leasing a restaurant in Dubai — considering the economic prospects, property market, and cost of operation — is a wise decision for restaurant establishment expansion or new start-up.
It is not allowed to conduct restaurant & food businesses in Dubai on unstated licenses. A streamlined yet systematised licensing system is offered by the state for public safety for investors as well as for health. Of course, you are required to take such permits — but it demonstrates you are serious about having international standards. Let’s remember that taking an official restaurant licence facilitates taking Dubai work visas for workers as well as owners because it demonstrates you are conducting an honest & transparent business.
First legal requirement for all commercial businesses in Dubai — restaurant included — is obtaining a trade license from DED and health permit from the Dubai Municipality. These two departments assess you for commercial operation simultaneously. Main license procedure:
Standards for construction, ventilation, washing stations, garbage removal, and cleanness are all very specific for the Dubai Municipality. A scheme laid down according to these rules facilitates obtaining the permit easily.
The mandatory submission of paperwork will expedite the time it takes for your admission. Here are the steps on getting a Food Activity license:
Now that you are familiar with the process, here are the estimated cost of Setting up a Restaurant in Dubai:
| Expense Type | Estimated Cost (AED) |
| Trade License & Permits | 10,000 – 25,000 |
| Ejari Registration & Deposits | 5,000 – 15,000 |
| Kitchen Equipment & Fit-Out | 50,000 – 150,000+ |
| Staff Visa & Insurance | 8,000 – 15,000 (per employee) |
| Initial Food & Supplies | 10,000 – 30,000 |
| Marketing & Branding | 5,000 – 20,000 |
If you are interested in opening your restaurant in one of the free zones in Dubai such as DIFC, JAFZA, or DSO, then you also need to follow the following procedures in addition to all the above:
Opening a Restaurant in free zones is also usually awarded further benefits like exemption from taxation, 100% ownership for foreigners for the company and ease for equipment import.
Deciding on the correct location for a rental restaurant in Dubai more or less determines one’s business success or failure. There is something distinctive about each location. It usually ranges from people’s cultural heritage and income group. It also depends on the footfall points, tourist points, and lifestyle factors.
Indeed, favorable location is one of the defining considerations for starting a business in Dubai, particularly for the restaurant and culinary industry. Here are the best choices:
Deira is one of the oldest areas in Dubai city and one of the busiest areas. It is also considered even today the heart of trade base and general public life in the city. It is visited mostly by forgein workers and cost-conscious tourists, and budget or traditional restaurants are popular here. Rental attractions of Deira:
For low cost high margin markets where traffic driven sites are being eyed by businesses, Deira is a shrewd high-reward choice.
Jumeirah is among the beachfront high-end districts in Dubai where you get high-income earners like locals, career expats, and high-budget tourists. The majority of the restaurants are theme-based, fine dining, and spectacular. Pros for renting in Jumeirah:
The rents for Jumeirah venues are considerably higher than many other locations, but if executed on the correct lines, payback time for this location is quite short.
Free zones like DIFC, JLT, and Dubai Silicon Oasis are kept aside for multi-national enterprises as well as overseas investors. They are controlled by independent legal regimes and are accorded distinct value-added tax treatments as well as distinct ownership structures. Other privileges for lessees in the free zones:
If you are serving professionals, members of the senior-level staff personnel, or are using brand premium positioning, you need to go for the free zones for achieving a stable base in the Dubai marketplace.
Rent charges for restaurant outlets in Dubai are among factors considered when one starts a sustainable restaurant company. The rent is controlled by a series of factors ranging from location to building grade, floor area, available amenities, even contract payment mode. Statistics for properties for real estates and new sites for investment reveal that annual average rent per square meter is AED 700 to AED 2000. These all add up to the final amount: proximity to malls, traffic intensities, pre-fitted facilities for the kitchen, ease to parking lots, as well as public transports.
Although starting a restaurant in Dubai is significantly more expensive than in numerous other nations, it does not deter investors — it is indicative of vigorous buying power for the marketplace as well as potential income for the restaurant trade. Shrewd location choices, precise cost estimates, and broad insights on consumer purchasing habits are able to work towards success in this extremely competitive marketplace.
Rental is estimated once a year per square metre. There are various zones with various differences depending on geographical characteristics, clientele profile, and commercial intensity. The following table displays estimated rents per square metre by districts:
| Area | Average Price (AED/sq.m./year) | Features |
| Jumeirah, Downtown | 1500 – 2000 | Luxury, tourist-heavy, high customer volume |
| Deira, Bur Dubai | 800 – 1200 | Budget-friendly, crowded, traditional |
| DIFC, JLT (Free Zones) | 1000 – 1600 | Commercial, tax-free, professional environment |
| Oud Metha, Al Quoz | 700 – 1000 | More industrial, suitable for fast food and mid-range |
| Marina, Business Bay | 1300 – 1800 | Commercial, modern, high foot traffic |
There is various pay terms through post-dated cheques more than once during a year. They are also quite useful during the early days of business for cash management.
Leasing a restaurant in Dubai for expats is less interesting but more efficient and transparent than it is in numerous other regional countries. Nevertheless, it is still controlled by certain rules. Non-Emiratis are able to lease a commercial property for restauranting on an individual basis as one lawful entity or by joint partnership with an Emirati or by one UAE company.
If the property happens to be in one of the free zones in Dubai, it is now feasible for the foreign investor to register a company and realize 100% ownership sans local sponsor requirement and thereby start operations rightfully. To realize this, one is meant to present documentation such as the company registration certificate, DED or the relevant free zone authority trade license, health and safety permits, together with a written lease agreement with the property owner.
A few of the major perks for overseas lessees include exemption from taxation, liberty in transferability of profit to homecountry, as well as liberalized recruitment procedure for overseas staff members. These perks along with economic security as well as infrastructural advancement of Dubai assist in making it one amongst the best cities in UAE for work as well as investment in the restaurant business. But it is highly advised to avoid pitfalls as our experts at Dxboffplan are ready to help you through this process.
A new and diversified restaurant and food sector is growing very rapidly in Dubai and it offers a tempting opportunity for entrepreneurs as well as investors. Having a rental restaurant in Dubai instead of purchasing is one such positive option for getting into the market early with low costs. Making precise estimates regarding expenditures, getting the location right, fulfilling legal formalities as well as acquiring licenses are some of the key steps to be implemented precisely.
By finding you the most appropriate property and offering professional services by the expert team of Dxboffplan, you can start your restaurant career confidently sooner. You can start some small fast-food or offer a premium international brand to Dubai, which is all you need for the use residency as well. Dxboffplan offers you a professional team available 24/7 totally for free, contact us now and start confidently on the very first step.
Yes, foreigners may rent a restaurant in Dubai even if they are not joined by a local partner if one registers his or her business in one of the city's free zones. Even in mainland sites, one may still require a sponsor or local service agent depending on the form of business.
Rental rates also greatly differ by location, tenure, as well as footfall. They also come with average rates ranging anywhere between AED 50,000 per annum for tiny restaurants to AED 500,000 or more for high-end places such as Downtown Dubai or even Dubai Marina.
You require a trade license by the Department of Economic Development (DED) or the concerned free zone authority as well as permits for hygienic and food safety by the Dubai Municipality. You also require a tenancy agreement prior to issuance of licenses.
