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United Arab Emirates Restaurant Guide

How to Open a Restaurant in the UAE

Tap into Dubai and Abu Dhabi's booming hospitality market with world-class dining

United Arab Emirates Restaurant Market Overview

AED 55 billion

Market Size

6.5%

Annual Growth

15,000+

Restaurants

2,000+

New/Year

AED 2.2 million/year

Avg Revenue

350,000

Employed

Startup Costs in United Arab Emirates

Estimated investment ranges based on restaurant size and concept (in AED)

Small

AED150,000 - AED400,000

Small cafe or kiosk

Medium - Most Popular

AED400,000 - AED1,000,000

Casual dining restaurant (30-80 seats)

Large

AED1,000,000 - AED3,000,000

Fine dining or destination venue (80+ seats)

Required Licenses & Permits

Essential permits you'll need to legally operate a restaurant in United Arab Emirates

Trade Licence

F&B trade licence from Department of Economic Development

Authority: DED / Free Zone Authority

AED 10,000 - AED 50,000
2-4 weeks

Food Permit

Food safety approval and inspection

Authority: Municipality Food Safety Dept

AED 2,000 - AED 10,000
2-6 weeks

Liquor Licence

Required to serve alcohol (hotels or special zones)

Authority: Tourism Authority

AED 20,000 - AED 100,000/year
2-3 months

Civil Defence Approval

Fire safety inspection and certificate

Authority: Civil Defence

AED 1,000 - AED 5,000
2-4 weeks

Signage Permit

Approval for exterior signage

Authority: Municipality

AED 500 - AED 2,000
1-2 weeks

Typical Operating Costs

RentAED 100,000 - AED 1,000,000/year (varies greatly)
Labour Cost20-25% of revenue (lower wages)
Food Cost28-35% of revenue
UtilitiesAED 3,000 - AED 15,000/month
InsuranceAED 5,000 - AED 20,000/year

Tax Information

Sales Tax / VAT

VAT: 5%

Corporate Tax

9% Corporate Tax (above AED 375,000 profit)

Employment Tax

No personal income tax

Key Regulations to Know

Important compliance requirements for restaurant operators in United Arab Emirates

UAE Food Safety regulations
Halal certification requirements
Municipality health codes
Labour law compliance (WPS)
Emiratisation quotas (for larger businesses)
Trade licence activity restrictions
TDRA compliance for digital services

Market Opportunities

  • Tax-free income
  • Expo/tourism growth
  • Diverse expat population
  • Premium dining demand

Key Challenges

  • High setup costs
  • Liquor licence restrictions
  • Seasonal tourism fluctuations
  • Visa/sponsorship complexities

🍽️Popular Cuisines in United Arab Emirates

Arabic/Lebanese
Indian
Italian
Japanese
American
Thai
Turkish

Top Locations to Consider

Dubai Marina
Downtown Dubai
DIFC
JBR
Abu Dhabi Corniche
Al Ain
Sharjah

Ready to Open Your Restaurant in United Arab Emirates?

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