How to Open a Fashion Store in Dubai?

by Jayati Gadamsetty 22, Mar 2024

Dubai, the thriving city known for its elegance and innovative trends, is visited by fashion gurus and entrepreneurs. The Emirate has a growing fashion scene, controlled by a diverse population with a taste for high-end and unique fashion products.

With a population of over 3.5 Million people with different tastes and ample disposable income, Dubai offers plenty of opportunities for fashion stores. According to Euromonitor International, the fashion industry sales in UAE are projected to reach USD 12.3 billion by 2025.

Want to open a fashion store in Dubai? Read the guide to know the requirements and steps to convert your dream into reality.

Steps to Start A Fashion Business in Dubai

The process of starting a fashion business in Dubai is simple. Still, it is advised to seek help from business experts at Commitbiz to understand and follow the rules and regulations.

The steps for starting your fashion business are mentioned below:

  1. Partner with a Local Sponsor

The fashion industry in Dubai needs the business owner to have a local sponsor who owns 51% shares of the company. The sponsor can be a person or a business organisation based in the UAE. The role of the sponsor can vary.

  1. Settle on a Trade Name

Decide on a trade name for your Dubai store. Ensure the name is unique and relevant to the business. Once the name is decided, collect a No Objection Certificate and get the name approved.

  1. Apply for Business Registration and License

To get a business registration and specific license, you need to apply at the Department of Economic Development (DED) or the relevant Dubai Freezone Authority. 

  1. Submission of Documents

Obtaining registration and licenses requires submitting relevant documents. The documents are mentioned below -

  • Memorandum of Association (with local sponsor)
  • Article of Association (with local sponsor)
  • Retail Space Rental/lease agreement
  • Application Form
  • Passport Copy
  • Visa Copy
  1. Rent a Retail Space

Select a location to set up your shop. Make sure it is in close vicinity to its target market. Once the location is selected, pay the necessary amount and secure permissions from the relevant authorities.

  1. Open a Bank Account for your Fashion Store

Choose from among many international banks available in Dubai. Submit the necessary personal and business-related documents to open a bank account.

  1. Hire Workforce

Hire a reliable workforce for your store in Dubai. Ensure they are qualified and are capable of handling sales, customer service, etc. The store can provide training for better service.

Benefits of Starting a Fashion Store in Dubai

Understand why opening a fashion outlet in Dubai will be advantageous. Read the benefits below -

  1. High Disposable Income

Dubai’s population is known for its high disposable income. More disposable income means more spending. This attracts luxury and high-end brands.

  1. Strategic Location

Located in the middle of Europe, Asia and Africa, Dubai has become a popular hub for foreign business. This makes it simple for people worldwide to access the fashion market in Dubai.

  1. Tax-Free Zone

Dubai has a tax-free environment. No corporate or personal income tax is charged here. The tax-free environment makes it appealing for business people to start their businesses here.

  1. Tourism

Every year, Dubai attracts plenty of tourists. The lavish fashion stores and fashion events draw crowds to spend money. This is a great opportunity for many investors planning to set up their own fashion store in Dubai.

  1. 21st Century Infrastructure

Supportive infrastructure and premier shopping centres are the first things which come to mind when you think of Dubai. Luxury malls let businesses establish themselves in high-end shopping spaces.

  1. Government Initiatives

The Dubai government offers incentives, and grants, for supporting people in setting up a company in Dubai.

Dubai has a fashion-forward mindset and a superb clientele. This presents a good opportunity for entrepreneurs to set up their fashion outlets in Dubai. 

As a businessperson, you must conduct thorough research and understand the legalities of establishing a successful fashion store. Remember, for surviving in Dubai’s bustling market, you will need to offer clients a unique service.

While you focus on delivering the best products and services to your clients, experts from Commitbiz will handle the legalities for starting your Dubai business. Get in touch with us for booking a free consultation with our consultants.


What is the expected growth in retail apparel in the Dubai fashion market by 2023?

The expected growth (CAGR) is 3.8%, 4.9%, and 3.7% for men, women, and children respectively.

Where can we incorporate a fashion store in Dubai?

You can carry out your incorporation in the mainland, offshore, or free zones of Dubai.

Can we hire global employees for the Dubai fashion industry?

 Yes, global employees can be hired.

Do we have any currency restrictions for the fashion business in Dubai?

 No, there a no currency restrictions for any business investor.

Which authority is responsible for issuing licenses for the fashion industry in Dubai?

 The Department of Economic Development, Dubai issues licenses to start a fashion company.