Coffee shop in Dubai is more than a trend, it’s a booming business. With over AED 2.6 billion spent on coffee in the UAE according to Statista, demand keeps rising. Many investors ask: what does it take to open one in 2025? From licenses to costs to location, every step matters. This guide gives you clear answers to help you start fast, avoid mistakes, and grow with confidence in Dubai’s café market.
Is Opening a Coffee Shop in Dubai Profitable in 2025?
Yes — opening a coffee shop in Dubai can be profitable in 2025, but whether you will profit depends a lot on how well you manage costs, the kind of café you run, location, competition, and your pricing/branding.
Opening a coffee shop in Dubai gives you more than just a place to serve drinks. The city is active, global, and always changing. With careful planning, your shop can grow fast in this competitive but rewarding market.
Top 11 Benefits of a Coffee Shop in Dubai
- High demand all year
Dubai has millions of residents and visitors. So, cafés enjoy steady traffic every day. - Tourism brings global customers
Tourists from around the world visit daily. As a result, your shop gains wide exposure. - Prime locations everywhere
You can open in malls, towers, or tourist areas. Each brings strong walk-in business. - No personal income tax
Since Dubai offers tax-free income, owners keep more profits from sales. - Diverse customer mix
With over 200 nationalities, your menu can serve many tastes. - Clear setup rules
Licensing steps are direct and easy to follow. Therefore, setup moves quickly. - Skilled staff available
Trained baristas and support staff are easy to hire across the city. - Creative brand freedom
Since the market is open, you can build a fresh and unique brand. - Digital tools work well
Dubai uses cards, apps, and loyalty tools. Hence, operations stay modern and smooth. - Event exposure helps growth
Food festivals, pop-ups, and local events give free promotion opportunities. - Strong infrastructure support
Dubai has modern utilities, fast internet, and reliable logistics. This keeps your coffee shop running smoothly every day.
Comparison: Dubai vs. Other Markets
| Factor | Dubai | Other Markets |
| Tourist Traffic | Very High, millions yearly | Moderate, seasonal flow |
| Owner Ownership | 100% foreign ownership allowed | Often restricted or limited |
| Startup Speed | 2–4 weeks with a clear process | 1–3 months, more delays |
| Customer Diversity | Extremely high, 200+ nationalities | Variable, less diverse |
| Tax Benefits | Zero personal income tax | Usually taxed profits |
Dubai gives you the tools to grow your coffee shop business with confidence. If you prepare your documents, choose the right location, and offer quality service, your coffee shop in Dubai can attract daily customers and long-term growth. The city’s mix of high demand, easy setup, and tax-free earnings makes it one of the best places to start your dream café.
What Licenses Do You Need to Open a Coffee Shop in Dubai?
Starting a coffee shop in Dubai is a strong business move. But to operate legally, you need the right approvals. Each license depends on your shop’s setup, menu, and location.
Essential Licenses and Approvals
1. Trade License
- Apply through the Dubai Economy (DED) or Free Zone.
- Select Cafeteria or Coffee Shop under business activity.
- This license gives you the legal right to run your shop.
2. Initial Approval Certificate
- Issued by DED before the full license process.
- Confirms your activity is allowed.
- Needed before you sign contracts or design your shop.
3. Trade Name Registration
- Choose and register your business name.
- Must follow DED rules for clarity and uniqueness.
4. Food License
- Issued by Dubai Municipality.
- Shows your café meets food safety rules.
- Covers food prep, serving, and hygiene standards.
5. Food Safety Approval
- Submit your kitchen layout to the Food Control Department.
- Design must follow the UAE Food Code.
6. Ejari Registration
- Register your rental contract with the Dubai Land Department.
- Confirms your location is legal for business.
7. Civil Defense Approval
- Needed before you open.
- Covers fire safety, ventilation, and emergency exits.
8. Layout Approval
- Dubai Municipality must approve your shop design.
- Includes seating, kitchen, and storage areas.
9. PIC Certificate
- At least one staff member must have this.
- Shows your café has someone trained in food safety.
10. Signboard Permit
- Apply through DED or Municipality.
- Your shop sign must follow size, font, and content rules.
11. Pest Control Contract
- Must be signed with a licensed service.
- Submit it to the Municipality as part of hygiene checks.
12. Waste Management Contract
- Shows how you handle food waste and packaging.
- Required for all food and beverage businesses.
13. NOC from Landlord
- If in a mall or shared space, get approval from the main operator.
- You can’t open without this document.
- Work Permits for Staff
- Apply through MOHRE if you hire non-UAE nationals.
- Make sure they have proper residence and labor permits.
License and Permit Summary
| License / Approval | Issued By | Purpose |
| Trade License | DED / Free Zone | Legal right to operate your café |
| Initial Approval | DED | Confirms allowed activity |
| Trade Name Registration | DED | Approves and reserves your shop name |
| Food License | Dubai Municipality | Food handling and hygiene clearance |
| Food Safety Approval | Food Control Department | Kitchen layout and safety check |
| Ejari Contract | Dubai Land Department | Legal shop location proof |
| Civil Defense Approval | Dubai Civil Defense | Fire safety and ventilation clearance |
| Layout Approval | Dubai Municipality | Interior, kitchen, and seating plan approval |
| PIC Certificate | Dubai Municipality | Food safety management requirements |
| Signboard Permit | DED / Municipality | Permission to display the shop sign |
| Pest Control Contract | Municipality-Approved Contractor | Confirms cleanliness standards |
| Waste Management Contract | Waste Authority | Waste disposal compliance |
| NOC from Landlord | Property Owner / Mall Management | Permission to operate in shared spaces |
| Staff Work Permits | Ministry of Human Resources | Legal employment of non-UAE nationals |
Why This Checklist Matters
- Each approval protects your business.
- Missing one can lead to delays, fines, or shutdown.
- Many shop owners fail because they skip small steps.
You don’t have to.
Final Tips
- Start early with your trade name and DED approval.
- Choose your location wisely before signing a lease.
- Always check for updates on rules from Dubai authorities.
- If in doubt, ask a setup consultant to review your paperwork.
Key Documents Needed for a Coffee Shop License in Dubai
- Passport copies: Submit valid, clear passport copies for all owners and partners. Each copy must match the visa application.
- Visa and Emirates ID copies: Include your UAE residence visa and Emirates ID if you’re a resident. This speeds up verification and checks.
- Trade name reservation certificate: Reserve your coffee shop name with the Department of Economic Development. Use the same name in all forms.
- Initial approval certificate: Apply for this early. It confirms your coffee shop activity is approved before you move forward.
- Tenancy contract and Ejari: Sign your lease and register it under Ejari. Also, make sure the shop follows zoning rules.
- Shop layout and floor plan: Submit a simple design with labeled kitchen, storage, and seating. Dubai Municipality must approve it.
- Food safety approval: Apply for a food code and inspection. You need this for all food handling and service areas.
- Person-In-Charge (PIC) certificate: Assign a PIC and get them trained. Keep all training records on-site and updated.
- NOC (if on employee visa): If you’re working elsewhere, submit a No Objection Certificate from your sponsor or employer.
- Memorandum of Association (MOA): Required for LLCs and partnerships. It defines roles and shares between business owners.
- Medical fitness certificates: Staff handling food must have valid health clearance as per Dubai’s food safety laws.
Coffee Shop License Checklist Table
| Document | Purpose and Description | Issuing Authority |
| Trade Name Reservation | Officially registering your coffee shop name, an essential first step | Dubai Department of Economic Development (DED) |
| Initial Approval Certificate | Approves your specific coffee shop activity and confirms partner details | Dubai Department of Economic Development (DED) |
| Tenancy Contract + Ejari | Confirms legal right to occupy the shop premises | Dubai Land Department & Ejari System |
| Shop Layout & Floor Plan | Detailed layout of kitchen, seating, storage & ventilation; must be approved | Dubai Municipality |
| Food Safety & Hygiene License | Certifies that your coffee shop meets Dubai’s strict hygiene and food safety rules | Dubai Municipality Food Safety Department |
| No Objection Certificate (NOC) | Landlord’s permission for your coffee shop business | Property Owner |
| Civil Defense Approval | Fire and safety compliance clearance | Dubai Civil Defense Department |
| Memorandum of Association (MOA) | Legal document describing the business ownership structure | Notary Public or Dubai DED |
| Passport & Visa Copies | Identity and residency verification of all owners and partners | Federal Immigration Authority |
| Medical Fitness Certificates | Medical clearance certificates for food handlers are required by health authorities | Dubai Health Authority |
| Person-In-Charge (PIC) Certificate | Certificate proving that a trained food safety manager has been appointed | Dubai Municipality |
Keep all your documents ready and valid. Submit them in the right order. This reduces delays and avoids rework. With full preparation, your coffee shop in Dubai can open fast and run smoothly. Moreover, when your paperwork is accurate, your coffee shop business gets approved on the first attempt.
13 Steps to Get a Cafeteria License in Dubai
- Select Business Activity: Choose Cafeteria or Coffee Shop under the food service category. This defines what your café can serve.
- Reserve Trade Name: Pick a unique trade name and register it with the Dubai Economy (DED) or the Free Zone. It must follow naming rules.
- Get Initial Approval: Apply for initial approval from DED. This clears your concept before moving to the next step.
- Decide Legal Structure: Choose between sole ownership, partnership, or LLC. LLC is common for small outlets.
- Sign Tenancy Contract: Rent a space suitable for a food business. Then, register the contract under Ejari.
- Submit Layout for Approval: Send your kitchen and seating plan to Dubai Municipality. The layout must include chimney duct, dishwashing, and fire exits.
- Apply for Food Safety Approval: Provide your hygiene and kitchen plan to the Food Safety Department. Approval is mandatory before operations.
- Appoint a PIC (Person-in-Charge): At least one staff member must complete food safety training. The PIC manages compliance.
- Obtain Civil Defense Approval: Install fire alarms, extinguishers, and ventilation. Civil Defense checks safety before granting clearance.
- Secure Extra Approvals: Get contracts for pest control and waste management. Also, apply for signboard permits.
- Collect No Objection Certificate (if needed): If your café is in a mall or shared building, get an NOC from the landlord or developer.
- Apply for Final Trade License: After all approvals, collect your final cafeteria license from DED.
- Apply for Staff Visas: If hiring foreign workers, secure visas and work permits through MOHRE.
Getting a cafeteria license helps you start your coffee shop business legally. Whether you run a dine-in or takeaway coffee shop in Dubai, always follow the correct setup steps.
Where to Start Your Coffee Shop in Dubai: Mainland or Free Zone?
Mainland or free zone, Both give you 100% foreign ownership. But the rules, reach, and costs vary. Here’s a full comparison to help you choose the right path for your coffee shop in Dubai:
| Feature | Mainland | Free Zone |
| Business Location | Anywhere in Dubai | Inside the specific zone only |
| Market Access | Sell across all the UAE | Inside the free zone or exports only |
| Ownership | 100% foreign ownership | 100% foreign ownership |
| Approvals | DED + Dubai Municipality | Free Zone Authority only |
| Office Requirement | Physical shop (min. 200 sq ft + Ejari) | Flexi-desk or virtual allowed |
| Visa Quota | Unlimited (based on space) | Limited (3–6 usually) |
| Rent Cost | Higher, prime locations | Lower, shared spaces |
| Setup Cost | AED 25,000–40,000+ | AED 5,000–25,000 |
| Layout Flexibility | Full freedom to choose layout and design | Must follow zone rules |
| Government Contracts | Can apply | Not eligible |
| Tax | 9% above AED 375,000 profit | 0% on qualifying income |
| Best For | Full cafés, dine-in, high foot traffic areas | Kiosks, cloud kitchens, delivery models |
What It Means for Your Coffee Shop
Choose Mainland if You:
- Want to open in malls, high streets, or residential areas
- Plan to grow your café across Dubai and the UAE
- Want to serve walk-in customers and join delivery apps
- Aim to bid for government contracts later
Choose Free Zone if:
- You’re starting small, like a cloud kitchen or takeaway booth
- Your budget is limited
- You want a quick setup with fewer rules
- You plan to focus on export, not local sales
What to Keep in Mind
- Mainland = wider reach, higher cost
- Free Zone = lower cost, limited market
- Mainland gives more space, freedom, and customers.
- Free zones are faster, cheaper, but restrict your access.
Finally
The best setup for your coffee shop in Dubai depends on your goals.
Starting with a small kiosk? Go with a free zone.
Planning a full café with dine-in? Mainland is your answer.
Pick the model that fits your dream, not just your budget.
9 Essential Steps to Start a Coffee Shop in Dubai in 2025
1. Shape Your Idea
Decide what makes your café special.
- Who is your target customer?
- What unique drinks or style will you offer? A clear concept and a solid business plan help you stay on track and manage your budget.
2. Choose Your Location
Location affects your sales directly.
- Look for areas with heavy foot traffic, such as offices, schools, and malls.
- Ensure easy parking and access to public transport.
- Check rental costs and get your tenancy contract (Ejari).
3. Get the Right Licenses
Licensing is mandatory.
- Apply for a trade license from the Dubai Department of Economic Development (DED) or a free zone.
- Get a food license from Dubai Municipality after inspection. You need both before you open.
4. Design Your Café
A welcoming design attracts customers.
- Make your space cozy and modern.
- Keep it Instagram-worthy to increase visibility.
- Submit your layout to the Dubai Municipality for approval before fit-out.
5. Hire and Train Staff
Your team is the face of your café.
- Hire skilled baristas and friendly service staff.
- Ensure they complete food safety and hygiene training.
- Train them well to build customer loyalty.
6. Buy Quality Equipment
Good coffee needs good machines.
- Invest in a reliable espresso machine and grinders.
- Keep a quality fridge for fresh ingredients. High-standard tools mean consistent drinks and happy customers.
7. Set Up Your Finances
A proper system protects your business.
- Open a corporate bank account.
- Track income, salaries, and stock.
- Seek professional advice to manage finances correctly.
8. Start Marketing Early
Create buzz before launch.
- Use Instagram, TikTok, and Google Maps to reach customers.
- Share behind-the-scenes stories and teaser photos.
- Plan a soft launch with free tastings to attract first visitors.
9. Get Expert Help
The process may feel complex. A business setup consultant can handle paperwork, approvals, and banking. This saves time and reduces errors.
Coffee Shop Setup Timeline in Dubai
| Step | Action | Time Needed | Notes |
| 1 | Business Plan | 3–5 days | Menu, budget, legal structure |
| 2 | Trade Name & License | 5–10 days | DED or free zone approval |
| 3 | Location & Layout | 1–2 weeks | Ejari contract, Municipality approval |
| 4 | Food License | 5–10 days | Health & safety inspection |
| 5 | Fit-out & Equipment | 2–4 weeks | Must meet Municipality rules |
| 6 | Hiring & Training | 1–2 weeks | Staff food hygiene training |
| 7 | Banking | 1 week | A corporate account is required |
| 8 | Marketing | 1–2 weeks | Build buzz prestart |
Opening a coffee shop in Dubai in 2025 is achievable if you follow each step carefully. With a clear plan, the right location, proper licensing, and strong marketing, your café can stand out and succeed in Dubai’s booming market.
How Much Does It Cost to Open a Coffee Shop in Dubai?
Costs differ based on size, area, and approvals. Therefore, preparing a clear budget helps you avoid surprises and plan with confidence. Below is a detailed cost breakdown that every coffee shop business should consider.
Key Costs You Must Expect
- Trade License & Approvals
- AED 10,000 – AED 20,000
- Covers trade license, initial approval, and name reservation.
- Interior Design & Fit-out
- AED 50,000 – AED 150,000
- Includes furniture, seating, counters, and a full kitchen layout.
- Staff Hiring & Salaries
- AED 5,000 – AED 7,000 per employee (visa + labor card).
- Annual salaries range from AED 120,000 – AED 240,000.
- Municipality & Safety Approvals
- AED 7,000 – AED 12,000
- Includes food code, kitchen layout, and health permits.
- Marketing & Branding
- AED 5,000 – AED 20,000
- For signage, social media ads, and opening promotions.
- Miscellaneous Costs
- AED 15,000 – AED 30,000
- Covers insurance, utilities, and initial stock.
The average cost to start a coffee shop in Dubai ranges from AED 180,000 to AED 500,000, depending on location, size, and design. With clear planning, your coffee shop business can open smoothly and attract daily customers. Therefore, prepare documents early, set aside enough budget, and focus on service quality.
How long does it take to open a coffee shop in Dubai?
Opening a coffee shop in Dubai generally takes 3 to 6 months. This includes getting licenses, arranging interiors, hiring staff, and passing health inspections. Planning well and following rules can speed up the process. Patience ensures your coffee shop business starts strong and without delays.
What Are the Best Locations to Open a Coffee Shop in Dubai?
Choosing the right location is critical for any coffee shop in Dubai. The best areas combine high visibility, steady customer flow, and easy access. While rent is higher in prime spots, strong foot traffic often drives faster growth and stronger returns.
- Downtown Dubai is ideal for tourists and office workers near Burj Khalifa
- Dubai Marina & JBR attract residents, visitors, and beachgoers daily
- Business Bay is filled with professionals seeking quick coffee breaks
- Jumeirah is popular with locals and families looking for trendy cafés
- Al Quoz is best for niche or specialty coffee shops with unique themes
- Major Malls Dubai Mall, Mall of the Emirates, and City Centre malls guarantee consistent crowds
- Transport Hubs, airports, and busy metro stations boost grab-and-go sales
Balance rental costs with visibility. High-traffic locations cost more but deliver higher customer reach, while emerging areas like Al Quoz give affordable entry for creative café concepts.
How Can Buisness Link Assist you?
Starting a coffee shop in Dubai in 2025 is easier when you have the right partner. This guide gave you clear steps, costs, and license tips. Now take action, Business Link business setup helps you set up your coffee shop, get your license fast, and handle visas without hassle. With rising demand for cafés, the time to start is now. Want real support, not guesswork? Call Business LinkUAE today and begin your coffee business the right way.
Contact our team today by phone at +97143215227, WhatsApp at +971502052735, or email at connect@businesslinkuae.com to receive clear answers, expert advice, and hands-on assistance. This will enable you to attend your appointment fully prepared and confident.
FAQ’s
Can I offer a 24-hour service in my coffee shop in Dubai?
Yes, a coffee shop in Dubai can operate 24 hours, but special permits are required. You must obtain approval from Dubai Municipality and DET, along with Civil Defense clearance and an NOC from your landlord. Without these, fines or license suspension may apply.
Can a foreigner open a coffee shop in Dubai?
Yes. Foreigners can open a coffee shop in both the mainland and free zones. Mainland lets you sell anywhere in Dubai, while free zones offer full ownership.
Do I need special permission to provide outdoor seating?
Yes, you need approval for outdoor seating in Dubai. Submit your layout to Dubai Municipality for food safety clearance, get Civil Defense approval for fire safety, and secure an NOC from your landlord or mall. Seating must not block walkways or emergency exits.
Which is cheaper to start, a free zone or the mainland?
Free zones are cheaper at first, but the mainland gives wider access and long-term growth.
Can I own a mainland coffee shop fully?
Yes. Foreigners now enjoy 100% ownership for most activities, including cafés.
Can a free zone café sell in Dubai malls?
No. Free zone shops cannot trade directly in mainland malls without a distributor.
Can I rent space in a mall on a free zone license?
No. Free zone licenses restrict you to the zone area. Mainland allows mall outlets.
What setup is better for delivery-only cafes?
Free zones work well for cloud kitchens and online delivery models.
Can I expand from the free zone to the mainland later?
Yes, but it requires a separate license or working with a local distributor.
