A Guide on Starting a Retail Business in Dubai

by Zaara 23, Jul 2019

A Guide on Starting a Retail Business in Dubai

Dubai has proved to be one of the most attractive places for the market in the region for all the retailers as well as providing strong growth opportunities in every sector. Dubai is attracting expats from all over the world to expand their careers. Businesses like retail shops have always proved to be successful and emerging in most of the areas of Dubai with a substantial population as such businesses provide essential items.

Dubai's population is advancing rapidly due to the huge and continues arrivals of foreigners. Provided that most of these foreigners are enjoying the huge and substantial income and earning a lump sum. Retail is considered as one of the most popular sectors and best performing sector in Dubai. Hence there is no shortage of retail sectors in Dubai. However, with the growth in population, the demand is increasing day by day. Also, with the upcoming World Expo 2020, every industry is going to benefit, including the retail sector.

Retail Shops in Dubai

Establishment of small business in Dubai is a beneficial choice. Such an establishment is key to Dubai's future growth. Considering the licensing procedure as well as the other legal formalities, Retail businesses can be easily run smoothly in the proper operating environment in Dubai.

However, before jumping to set up your business in Dubai, we recommend conducting proper research for retail business in Dubai. Following mentioned components will help start up a retail business in Dubai:

1.Knowledge About Your Business

One of the crucial aspects of starting any business is to get the know-how on the type of business you are going to set up. The success depends on the knowledge you have about every aspect of your business.

These aspects can be the location of the business, demand for the products or services that you are going to offer, including a proper and credible business plan. Researching is the key to success. To set up a retail business in Dubai, you have to research more and more till you reach the optimum knowledge which is required by you.

2.Local Partner/Sponsor

To start a retail business in one of the free zones of Dubai, the process is not that complicated. In the case of the mainland, your only requirement would be of finding a suitable local partner who will be getting the majority of interest in your business.

A local partner gets 51%of shares in the business you acquire the other remaining. These local partners can be individuals or companies or brands. these local sponsors are not required to contribute financially to the company. General a fixed remuneration is to be paid to these local partners every month.


3.Financial Capability

One of the major aspects of starting any business is the financial viability of the individual. In Dubai, this is an important requirement. The Ministry of Commerce will be requiring the business owners of a business to prove the financial investment of the business. In the case of foreigners who are new to the respective region, you should be well prepared with your all financial resources by the bank or other means.

The Commercial Companies Law, as well as the Federal Law in UAE, defines the seven type of business companies which can be established in Dubai as well as their requirement for minimum capital and other procedure for the incorporation.


4.Business License

The major step in setting up a retail shop in Dubai is acquiring a business license for the same. The trade license and other such approvals will be regulated by the DED, Department of Economic Development.


Location is one of the factors responsible for the success of the business. In Dubai, two major jurisdictions are available for setting up a business. These are:

  • Free zone jurisdiction
  • Mainland jurisdiction

Selection of appropriate location plays a key important role in smoothly running your business. It would be best if you chose an area wherein people are convenient and wherein they visit more often. You can even rent a shop if you don't have enough means to buy an area. Finding a perfect location is a challenging aspect.

6.Business Name

After choosing the location and getting a license, the business owners are required to decide a name for their shop. The name should not be very long and should adhere to the regulations imposed by Dubai authority. The name should not be disrespectful and should respect the cultural norms of Dubai.

7.Legal Regulations and PRO

A retail shop in Dubai will require PRO services and further related documentation, paperwork, certification, several visas as well a trademark registration and permissions from different authorities which solely depends on the type of business structure.

Apart from the above-mentioned aspects for starting a retail shop in Dubai, it is also required to advertise the respective business for its brand value. Advertisement plays a major role in growing the brand name. If you are planning to set up a retail business in Dubai, our experts at Commitbiz are there to help you. For any query on the same or in other related services do contact us. We would be happy to help.

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