Are you planning to start your own grocery stores in Dubai? Wondering how much does it cost to open a grocery store in the Dubai? If yes, then you have hit the right place. Prospr is there to answer all the queries you have in mind regarding grocery store business in Dubai.
We will tell you how much initial investment is required from your side. And not only this- we also plan to share a step-by step process of setting up a grocery store in Dubai. So, basically we intend to answer all the questions you have regarding grocery store business setup in Dubai.
But before we tell you anything about process of grocery business setup, you must know:
How much investment is required to start a grocery store in Dubai?
The initial cost or investment for this kind of business is somewhere between AED 10,000 to 50,000.
Here is the investment cost breakdown for you.
Here’s a basic cost breakdown for starting a grocery store in the UAE in a table format. Please note that these costs can vary depending on the size and location of the store, as well as other factors:
| Expense Category | Estimated Cost -AED |
| Pre-operational cost | |
| Grocery business license cost | 10,000-15000 |
| Legal and consulting fees | 5000-10,000 |
| Market research | 3000-5000 |
| Fixed cost | |
| Store lease per year | 100,000-200,000 |
| Store renovation and setup | 50,000-100,000 |
| Equipment cost | 30,000-50,000 |
| Signage | 5000-10,000 |
| Inventory | |
| Initial Stock purchase | 100,000-200,000 |
| Operational cost/monthly | |
| Staff | 20,000-50,000 |
| Utilities | 5,000 – 10,000 |
| Marketing | 5,000 – 10,000 |
| Insurance | 1000- 2000 |
| Miscellaneous expenses | 10,000-20,000 |
| Contingency fund | 20,000 – 30,000 |
Note:
The lease amount varies on the location and size of your store. Let’s say you open a grocery store in Dubai Mall, then you will pay high rent. However, if you plan the same store in International city, the cost will be economical.
In case you need to renovate the cost and repair it then expenses will be high. Stock cost depends on your choice of products. If you add imported products, you will have to pay import duty as well. At first, you need to invest more on marketing and advertising, but once you have loyal customer’s base this expense will reduce.
How much does grocery store license cost in Dubai
You got an idea about the initial investment cost. Now it’s time to understand what the cost of a grocery store license is in the UAE.
| Expense Category | Estimated Cost (AED) |
| Trade Name Reservation | 620 |
| Initial approval | 220 |
| Commercial License cost | 10,000-15000 |
| Local Sponsorship Fees (if applicable) | 10,000-25000 (if required, annual cost) |
| Ejari (Tenancy Contract Registration) | 195 |
| Memorandum of Association (MOA) Notarization | 2000-3000 |
| Dubai Municipality Fees | 2500-3500 |
| Chamber of commerce registration | 1200-2000 |
| Signboard permit | 2500-3000 |
| Initial Deposit for Utilities (DEWA) | 2000-3000 |
| Total cost | 30,235 – 55,535 |
Steps to follow for opening a grocery store in Dubai
Here are some steps you need to take for starting a retail grocery store in Dubai.
Step 1:Business planning
You need to map out your business plan before you open a grocery store in Dubai. During this plan, you will decide about:
- Company structure
- Type of license your business needs
- Business location
- Reserve funds
- Initial investment
- Approvals
It’s always a good idea to do market research because insight from feasibility studies help you understand what specific location has high foot traffic. Remember, you need high foot traffic to grow your grocery business in Dubai.
Do you need a feasibility report for your grocery business? Feel free to connect with experts from Prospr. We will help you choose the right location for your business so it can enjoy ultimate success in the long run. Send your inquiry at hello@prosprplus.ae.
Step 2: Decide about your business activity
Next step is to select a specific business activity. You must be clear about the type of grocery store you want to build in Dubai.
Here is a different types of grocery store, pick one that defines your business activity:
- Supermarkets:
- Mini-Marts:
- Convenience Stores:
- Organic and Health Food Stores:
- Specialty Food Stores:
- Discount Stores:
- Ethnic Grocery Stores:
- Online Grocery Stores
- Farmers’ Markets
- Boutique Grocery Stores
- Hypermarkets
- Warehouse Clubs
Step 3: Gather Required Documents
In this step, you need to gather all the required documents so that you can apply for your grocery store license.
Documents Required for a Grocery Store License in the UAE:
- Trade name reservation certificate from DED
- Initial approval from the DED
- Emirates id, passport and visa copies of the passports of all business partners and shareholders.
- NOC from the current sponsor for expatriate partners if they are already on a work visa (if applicable).
- Notarized Memorandum of Association MOA
- Tenancy contract (Ejari)
- Location sketch approved by the Dubai Municipality.
- Initial approval from the planning Department
- Detailed business plan
- Health and safety approvals
- Fire Safety Certificate from the Civil Defense Department.
- Chamber of Commerce Membership:
- Power of attorney
- Bank reference Letter
Step 4:Get initial approval from DED
If you want to start your grocery store in Dubai, you need initial approval from the Department of Economic Development (DED) in Dubai.Without this approval, you can’t proceed with the next step of your application process.
Step 5:Reserve a trading name
Now it’s time to choose a trade name for your grocery store in Dubai. This name should be unique and doesn’t include any controversial words. You can’t use the initials and name of gods for your business name. Once you choose this name, simply reserve it on DED by following this link.
Step 6: Choose suitable location
Next thing is to pick an appropriate location for your Dubai grocery store and then lease this place. You need a lease agreement to get a trade license for your grocery store in Dubai. So, make sure you have it approved from Ejari.
Step 7:Grocery business license application
You need to get a commercial license for your grocery store. Once you have this license, you can sell only grocery products and you won’t be allowed to sell medical, herbal, pharmaceutical or cosmetic products.
Step 8: Open a corporate bank account
Since you need to get involved in daily transactions, there is a need to open a corporate bank account in UAE banks. You can manage finance through this account. Once you have a grocery business license, it will become easier for you to open a corporate bank account.
Must read: How to open a bank account as a non-resident in UAE
Step 9: Visa application
Once you have a trade license in your hand, you can issue a visa for your dependents and employees. So, if you need help from employees, you can apply for their visa.
Things to keep in mind before starting grocery business in UAE
Here are some important things you need to keep in mind about retail store in Dubai:
- If you make any change or amendment in your license, it’s vital to have approval from the municipality, DED and authorities
- You need to get pre-approval from DED, whenever you have a plan of using stickers, advertisement, banner ads or promotion for your store.
- You are not allowed to sell products with fake trademarks, sale of fake products will lead to legal action against your Dubai grocery store.
- Although there is no corporate or income tax, you still need to get a VAT registration number. The VAT rate is 5 percent. Must read; Is Dubai really a tax-free city?
Props is there to help you with setting up a grocery store in Dubai
We have provided a clear idea of how you can set up a grocery store in Dubai. As an expat in Dubai, you will find it tricky to navigate the process of company setup in Dubai.
Thanks to PRO and visa services by Prospr, you can readily overcome all the challenges related to your store setup in Dubai. Our expert will guide you regarding what location to pick and how to get initial approval for your business. We will be there every step of the way. Get started now
