Start a Tea, Coffee, and Spices Business in Dubai

by commitbizadmin 30, Jun 2020

Start a Tea, Coffee, and Spices Business in Dubai

Retail is one of the most successful business sectors in the UAE. The population in the Emirates is made up of locals and foreigners with excellent purchase power. Retail is also powered by a large number of visitors interested in the local habits, including in purchasing traditional products, like tea, spices, and coffee. This is the reason why Dubai Spice Market, known as the Dubai Souk, is one of the most visited places in the Emirate. Here, vendors sell all sorts of spices, tea, coffee, and herbs from large baskets.

Trading of coffee, tea and spices are one of the oldest kind of businesses that still exist in the UAE. The archaeological surveys have proven the UAE to be an essential trading junction in the ancient times as well with Dubai being an essential hub for spices and tea trading. Today, Dubai has a population of more than three million which is comprised of just 15% native residents and 85% of ex-pats. About 85% of the ex-pat population or 71% of the total population is made up of Asian. Coffee has been one of the most preferred beverages of Arabs, tea for South Asians and spices, more or less, has been an essential part of cuisine for both Arabs and Asians.

It is a great time to start a tea, coffee, and spices business in an iconic and cosmopolitan place like Dubai. Some of the products under this to be considered are –

  • Specialty Coffee- Roasted, green, organically sourced coffee from certified producers
  • Tea Varieties – Green tea, black tea and a variety of herbal teas
  • Spices – Indian, Chinese, Mexican, Thai or any special spices which could attract the ex-pats living in Dubai where the population comprises of the highest number of foreigners than the locals

All the three types of products can be traded under one license as they fall in the same group and type

  1. Coffee Trading

Activity Group: Roastery

License Type: Commercial

Activity Description: Includes reselling coffee beans, whether in bulk or consumer packs

  1. Tea Trading

Activity Group: Roastery

License Type: Commercial

Activity Description: Includes reselling tea, whether in bulk or consumer packs

  1. Spices Trading

Activity Group: Roastery

License Type: Commercial

Activity Description: Includes reselling of dried, packed or preserved spices, whether as raw or after having been roasted, ground, blended or packed

How to Register a Tea, Coffee and Spices Business in Dubai?

There are two types of corporate entities recommended when incorporating a coffee, tea, and spices business in Dubai, i.e. Sole Proprietorship and Limited Liability Company. Foreign investors can open their shops in Mainland Dubai or any of the free zones, in which can they have total control over the business.

The business registration procedure of tea, coffee and spice shop must be completed with the Department of Economic Development and can be carried out by the advisors from Commitbiz.

Another important thing is obtaining a license. The businesses wanting to sell coffee, tea, and spices must get a trade license to start their shop. Foreign enterprises are also allowed to set up their shops in Dubai Spices Souk. However, they are recommended to purchase the goods they want to sell from locals.

The process to be followed is as under –

  1. Select and register a trading name to obtain the trade license
  2. Obtain a NOC from the Dubai Municipality for which layout drawings of the shop must be submitted
  3. Next, you must provide the NOC to the Department of Economic Development (DED) for initial approval. Upon receiving the same, the MOA can be signed by the stakeholders of the company in the Dubai Courts
  4. Pay fees for obtaining the license
  5. Once the license is issued, there will be remarks on the license and to remove that an approval from the Dubai Municipality is required
  6. An import and export code needs to be obtained from the Dubai Customs to buy and sell the coffee, tea and spices products from any part of the world

The process is simple, but if you are new to Dubai and want a consultant to do it for you, then we at Commitbiz can help you with it. For more information, contact us today.