How to Set Up a Restaurant or F&B Business in the UAE

The UAE’s food and beverage industry is worth over $30 billion and growing. From cloud kitchens and specialty coffee shops to fine dining and franchise operations, the F&B sector continues to attract entrepreneurs and investors from across the globe.

What Licence Do You Need?

A food and beverage business requires a commercial licence with a food-related activity code — such as “restaurant,” “cafeteria,” “cloud kitchen,” “catering services,” or “foodstuff trading.” The specific activity wording matters because it determines your regulatory approvals, premises requirements, and what you are legally permitted to serve. F&B licences are primarily issued on the mainland through the DED, as restaurants and cafes typically need direct access to walk-in customers. However, cloud kitchens and food manufacturing can also operate from select free zones.

Regulatory Approvals

F&B is a regulated sector. Before your licence can be issued, you will need approvals from multiple authorities. In Dubai, this includes the Department of Economy and Tourism (DET), Dubai Municipality (food safety and hygiene), and in some cases Dubai Civil Defence (fire and safety compliance).

Each emirate has its own food safety requirements. Dubai Municipality operates under the Foodwatch system, while Abu Dhabi uses the Abu Dhabi Agriculture and Food Safety Authority (ADAFSA).

Premises and Fit-Out

Location is critical for any F&B business. Your premises must meet specific requirements for kitchen layout, ventilation, storage, waste management, and accessibility. The municipality will inspect your premises before issuing final approvals. This fit-out and inspection process can take four to twelve weeks.

For cloud kitchens, the premises requirements are simpler — you need a commercial kitchen space that meets food safety standards, but you do not need a customer-facing dining area. Several dedicated cloud kitchen operators offer turnkey kitchen spaces that come pre-approved.

The Setup Process

F&B setups take longer than most other licence types due to the multiple regulatory layers. Expect initial approval and trade name reservation in week one; premises lease signing and fit-out design in weeks two through four; municipality inspection and food safety approval in weeks four through eight; final licence issuance in weeks six through ten; banking and visa processing running in parallel.

Total time from concept to opening: approximately two to four months for a standard restaurant, and four to eight weeks for a cloud kitchen.

What It Costs

A cloud kitchen setup starts from approximately AED 50,000 to AED 80,000 all-in (licence, kitchen rental, approvals, and initial visa). A small restaurant or café in Dubai ranges from AED 150,000 to AED 500,000 depending on location, fit-out complexity, and seating capacity. Franchise operations typically require higher capital.