UAE business setup costs and licensing requirements

Business setup costs and licensing requirements in the United Arab Emirates vary significantly depending on the emirate, business model, and whether an entrepreneur chooses a mainland or free zone structure.

In Dubai, establishing a cafeteria requires a license from the Department of Economy & Tourism or Dubai Municipality, with total costs estimated between AED 25,000 and AED 50,000. This process typically takes six to ten weeks. For dropshipping businesses, the Department of Economy and Tourism provides specific e-commerce activity codes, with all-in setup costs ranging from AED 12,000 to AED 25,000.

In Sharjah, business setup costs can start as low as AED 5,500 for zero-visa free zone packages, while mainland setups generally incur higher costs, often starting from AED 14,000. Mainland options are noted for providing better direct access to the UAE market, whereas free zones offer lower entry costs and 100% foreign ownership.