The vibrant market of Dubai offers plenty of business opportunities for local and global investors looking to make large profits in any of the chosen fields. The retail sector makes no exception, as there are many entrepreneurs who successfully open shops for selling tea, fast-consuming goods like cosmetics, spices, clothes etc.
Cosmetics industry hasn’t seen a recession despite challenging times, and its continuous growth is evident in Dubai. It is a business related to the beauty and wellness industry. The reason for such an upward trajectory in Dubai is the desire of people of Dubai to look beautiful and remain healthy at any cost. The UAE spends most on beauty products in the whole Middle East region, while Dubai takes the lion's share. The government of Dubai also understands the importance of this business activity and supports this business through several steps and measures from time to time. Beauty related business incorporation is possible in Mainland and free zones of Dubai.
Facts and Figures of the Cosmetic Industry in the UAE Market
Facts and Figures are essential to analyse the actual growth of an industry in a country. According to the Euromonitor International –
- The consumers in the Emirates spend US$ 239 per capita on cosmetics and personal care, more than any other nation in the MEA region, and ninth worldwide
- Per capita spending on cosmetics in the Emirates is projected to remain on top in the next five years, at $295 in 2020
- UAE’s premium market share will increase from 48% to 50% in the same period.
- Best selling products
- Fragrances and perfumes – $5.8 billion in sales
- Haircare – $4.2 billion transactions
- Skincare – $3.5 billion in sales
- Future growth is likely to come mainly from well-established brands, niche, as well as competitively priced, produces that are high in quality and represent excellent value for money.
Trends in the Beauty Industry
Here are the trending factors in the beauty sector-
- Spa market
- Personalised products and services
- Men’s grooming
- The growing market for halal beauty and skincare products
- Demand for organic and natural products
- Cosmetic surgery which includes
- Micro-blading (eyebrow framing technique)
- Laser treatment for body and face
- Usage of slight invasive advanced techniques that needs no cuts and leaves no scars such as liposuction and facelifts
- Botox and fillers
- Injectable based fat-dissolving around face and neck
- Combination injectable based contouring
Guidelines before Setting up a Cosmetic Business in Dubai
Businesses who are into selling of cosmetic products in Dubai, UAE must register with the Dubai Municipality and follow the regulations under HS/001 issued by the Public Health and Safety Department. The sold products must follow the mentioned health and safety norms.
- The products must be categorised as cosmetics used for cleaning, to perfume or to change the appearance of an individual
- It must be labelled by the standards imposed by ESMA (the Emirates Authority for Standardization and Metrology)
- They must be safe to use on the skin, on the lips, nails, hair and teeth
- The firm must register as a distributor, seller, re-seller, importer, and manufacturer
Steps to Establish a Cosmetic Business in Dubai
Just like any other business activity, registering a cosmetic business in Dubai is simple and straight-forward with fewer formalities. The steps are-
- Select a trading name for your business which is not similar to any established company in Dubai
- Get an initial approval from the Department of Economic Development in case of Mainland and the particular free zone authority in case of a Free Zone
- Get a business license for the DED
- Next step is to get additional approvals, i.e. a Health License from the Public and Safety Department
- Submit required documents, pay fees, and get the business registered as a distributor of cosmetic products (re-seller or importer)
While opening a business for selling cosmetics in Dubai, it is requested to apply for the test report showing the content of the products you want to introduce to the market. One can follow the conditions of Dubai Central Laboratory or can provide the report from the home country if the products are imported. Oils, creams, soaps, makeup powders, perfumes, deodorants, gels, anti-wrinkle creams, hair care products, lotions, shaving products, depilatories, and lip and eye makeup products are among the cosmetics you can sell through your shop in Dubai.
Also remember, after registering the business, you need to follow one more important step, i.e. cosmetic product registration in Dubai.
Scheme for Cosmetics and Personal Care Goods in Dubai
The UAE government has also created the Scheme for Cosmetics, and Personal Care Products, under which Dubai businesses selling such goods must fulfil specific requirements related with the quality, the packaging and the labelling requirements of cosmetics.
We at Commitbiz can help you set up a cosmetic store in Dubai. Contact us today!