Opening a retail business or retail shop in Dubai and being in business for yourself can be very rewarding. You need to take the time to plan. Go through the proper channels and steps, and dedicate yourself to making it successful.
Dubai’s retail sector is projected to record an annual growth rate of 5.2% over the 2019-2023 period. Supported by strong international visitor spend and robust demand according to an analysis conducted by the Dubai Chamber of Commerce and Industry.
Retail Business Contribution to Dubai Economy
The local retail sector generated an estimated AED 142 billion in sales during 2018, marking a growth rate of 6.8%. Store-based retailing continues to dominate sales, accounting for a market share of 95%. H.E. Hamad Buamim, President and CEO of Dubai Chamber, has said: “retail remains one of the main contributors to Dubai’s economy and one of the most attractive sectors for investment in the emirate.”
Dubai’s retail space is set to surge by 50 per cent over the next three years with more than 1.5 million square metres of space added to the retail landscape. This provides you with the opportunity to select a retail site from a variety of options.
Start with a Business Plan
As an entrepreneur and small business owner, it’s easy to get swept up in your idea and the passion that’s driving you to start a business. A great first step is to dig into your idea and fine tune it as much as possible. Why do you want to open a retail store in the first place? Who will your customers be? What makes your idea or concept unique in Dubai? What will set you apart from your competitors?
Location, Location, Location
Start by making a list of ideal locations for your store. Based on the research you did making your business plan, you should already know which areas are mostly populated by your target customers. So you may want to set your sights on places where they live, work, and hang out.
You should also look at where your competitors are. There could be a lot of potential in those areas. Your competition has done their research, and they know which locations are good for business. You can also reach out to the local chamber of commerce in addition to and other business organisations to get business intelligence on various neighbourhoods.
It’s good to be cost-effective. But remember that when it comes to renting, lower doesn’t always mean better. Be sure to factor in traffic quantity and quality, neighbouring establishments, as well as additional costs. For example maintenance, utilities, etc. before deciding where to lease.
Retail Shop License Process
After deciding the type of retail store, to obtain a Dubai trade license, you will be required to find a local Emirati national as a partner. After this step, you have to submit several documents to the Department of Economic Development in Dubai which include:
- Passport copies for all shareholders and managers;
- Copy of the UAE residence visa (if applicable);
- No Objection Certificate (NOC) from current UAE residence visa sponsor (if applicable);
- Proof of address for each shareholder;
- Lease agreement or title deed for the business site.
If the shareholder is a corporate entity, the required documentation will include:
- Business license;
- Memorandum and articles of the company;
- A board resolution agreeing to incorporate a new LLC;
- A power of attorney (POA) to the General Manager to incorporate the new LLC.
The paperwork can differ slightly depending on the nature of the business of your retail store. We often find entrepreneurs who submit applications incorrectly face substantial delays in their approval. We would urge you to work with a reputable business consultancy firm to review your documentation and obtain the requisite approvals on your behalf.
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