5 Significant Reasons to Start a Restaurant Business in Dubai

by Zaara 06, May 2020

5 Significant Reasons to Start a Restaurant Business in Dubai

Dubai is known as the financial and commercial hub of the UAE. Every day, new businesses are set up in Dubai, thereby leading to an influx of people. The food industry is the primary beneficiary as people cannot survive without food. Furthermore, a fast-paced life ensures that many people do not have the time to cook. With the advent of delivery apps, it is the restaurants that benefit the most from this incredible growth in the number of residents in Dubai. Therefore, setting up a restaurant business in Dubai can be a fruitful endeavour is you play your cards right.

Reasons to Start a Restaurant Business in Dubai

Here are the five significant reasons because of which you should start a Restaurant Business in Dubai-

1. Dubai’s Booming Food Industry

The food industry of UAE is the second largest sector in the country, with Dubai making itself a major destination in the Middle East for the food and beverage industry. KPMG, in a report, noted that the restaurant footprint of Dubai compares well with other established global food and beverage markets, which includes bustling metropolises like Paris, London and New York City. Hence, setting up a restaurant business is very rewarding

Host to many world-class events and gatherings, Dubai also hosts the annual Gulfood which has now become one of the world’s largest annual food & beverage trade exhibition, even being compared to leading global food shows such as like the biannual ANUGA in Cologne, Germany and SIAL in Paris. Events like the Gulfood have increased the investment in the restaurant business in Dubai.

According to a report by Gulfood, with a rise in world fresh food sales by 13% by 2020 (approximately 280.5 million tonnes in volume), opportunities in this fast-developing sector are ripe across the globe, especially in Dubai. According to a report by the Department of Economic Development (DED), the number of restaurants in Dubai increased by 9.7% last year, with a whopping 11,813 restaurants doing business at the start of the year. Therefore, it is seen that the restaurant business is flourishing in Dubai.

2. Increase in the Number of Residents and Tourists in Dubai

Dubai has always been the financial and commercial hub of the UAE. Due to this, there has been a massive influx of people who want to work or set up a business in Dubai. Most of the people here are expats who are living alone. The fast-paced life of Dubai leads one to rely on the restaurants for food. This is hugely beneficial for the growth of the restaurant business in Dubai.

UAE has turned into a major tourist hub to separate itself from the economic reliance on Oil. As Dubai is one of the premier tourist destinations, it benefits the most from the influx of tourists. Whether these tourists visit Dubai to bask in its cultural heritage or bask in the suns of Jumeirah beach, they too at the end of the day rely on food from these restaurants to fulfil their essential nourishment.

According to the head of retail at KPMG Lower Gulf, despite the heavy competition, the food industry is booming thanks to the various global events being organised in Dubai such as Expo 2020, Gulfood 2020 among others. He further stated that the abundance of these events in the region should provide reasons for a positive outlook as UAE continues to evolve as a tourist destination. The UAE, in particular, Dubai, has made itself a major destination in the Middle East for the food & beverage industry – attracting both foreign direct investment (FDI) and also local companies.

3. State of the Art Infrastructure

In Dubai, there is no need for you to worry about the infrastructural requirements as it is at par with the global standards in infrastructure, modern amenities, and architecture. There are various malls famous for food and shopping across Dubai. e.g. The Dubai Mall is the world’s biggest shopping centre, the City walk Mall in Jumeirah which is well known for its various Michelin starred restaurants among others.

There is a plenitude of premium locations scattered across Dubai which will be perfect to set up a restaurant in.

4. Ease of Acquiring Food and Trading Licenses in Dubai

The government of the UAE is always on the lookout for new investors. Due to this reason, it is very easy to register your business in Dubai. Moreover, the same applies to procure a food and trading license in Dubai. Alcohol license also is available though it should be known that there exists a special process for obtaining the same, with additional fees being charged by the authorities.

5. Ease in Setting up a Business in Dubai

Starting a business in the UAE is hassle-free and quick if the right procedures are followed. The same goes for Dubai, especially in the food industry. It is very easy to start a restaurant business in Dubai. There are various types of companies to choose from, however, unless you are setting up a restaurant business in a free zone in Dubai, you would require the presence of a local sponsor.

As stated before, it is quick and hassle-free to set up a restaurant business in Dubai. However, Dubai (and in essence UAE) has many rules and regulations which need to be adhered to strictly as even a minor offence can lead to multiple fines and in worst cases a suspension of license. 

It is highly suggested to hire a local consultant so that you can focus on your fledgeling business, while the consultant takes care of the rest. Here at Commitbiz, we help guide you to incorporate a business in Dubai or in other parts of the UAE. We are a premier business consultant, with our expert advisors being well-versed in the process of company incorporation. We can help simplify and expedite the process of setting up a business in the UAE. To know more, do contact us- we would be delighted to assist you.

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