The UAE’s retail sector is thriving especially in cities like Dubai, which serves as a gateway to over 2 billion consumers across the Middle East, Africa and Asia. Here’s why Dubai retailers and entrepreneurs are thriving:

• High consumer purchasing power
• Year-round tourism and foot traffic
• Retail-focused free zones and commercial areas
• Tax benefits (0% income tax, low VAT)
• Ease of doing business and 100% foreign ownership

Whether you’re selling fashion, electronics, home goods, or gourmet foods, the demand is here and growing.

The iconic Dubai mall has been the largest mall in the world and in 2024 alone a total of 111 million visitors cherished this human wonder. In this Garden of Eden let’s see how to setup your dream retail shop.

Step 1: Choose the Right Jurisdiction

UAE have over 144,832 retail and shopping establishments, this strong and powerful presence should be taken into consideration to understand where your business fits in best. You can set up your retail company in Dubai under two main jurisdictions:

Mainland (Dubai Economy and Tourism – DET)

• Sell directly to UAE consumers
• Ideal for storefronts, boutiques and malls
• Requires a physical shop with a valid Ejari (tenancy) contract

Free Zone

• Lower startup costs and 100% ownership
• Suitable for e-commerce or B2B wholesale
• Limited to trade within Free Zones or via local distributors

Top Free Zones for retail:

• Dubai CommerCity (e-commerce)
• Jebel Ali Free Zone/Meydan (wholesale)
• RAKEZ/AJMAN FZ (fashion, design)

Step 2: Select a Business Activity

Retail business activities fall under:

• General Trading (multiple goods, non-restricted)
• Specific Retail Licenses (e.g. fashion, electronics, home décor)

Tip: The UAE government provides a detailed list of permitted retail activities make sure your chosen activity aligns with your offering.

Step 3: Register Your Trade Name

Your trade name must be:

• Unique and not already registered
• Not offensive or religious
• Reflective of your retail activity

Reserve your name with the relevant authority (DET or Free Zone) as part of the license application.

Step 4: Secure a Retail Space

If you’re planning a physical store:

• Lease a shop in a mall, street-side retail space or market
• Get an Ejari certificate (for mainland)
• Ensure the premises meet safety and zoning regulations

Top locations for retail stores in the UAE:

• The Dubai Mall
• Mall of the Emirates
• Al Fahidi & Karama for budget retail
• City Walk & JBR for luxury and lifestyle stores

Step 5: Apply for a Retail Business License

Depending on your jurisdiction:

• Mainland: Apply through Dubai Economy and Tourism (DET)
• Free Zone: Apply via the relevant Free Zone portal

Documents required:

• Passport copies of owners
• Initial approval
• Tenancy contract (Ejari)
• Memorandum of Association (MoA)
• External approvals (if required)

License cost varies but generally starts from:

• AED 10,000 – AED 30,000 (Mainland)
• AED 5,750 – AED 50,000 (Free Zones)

It is recommended to talk to a business service provider to understand whether your business blue print has any flaws or room for improvements. An expert with knowledge of the grass root reality of UAE market is an incredible asset for your incubating business.

Step 6: Apply for Visas and Open a Bank Account

Once licensed, you can:

• Apply for investor/employee visas
• Hire staff with labor approvals
• Open a corporate bank account

Tip: UAE banks often favor established retail companies with proper lease agreements and clear product sourcing details.

Step 7: Launch, Promote & Operate

As you prepare to open:

• Register with UAE’s VAT system (if revenue > AED 375,000)
• Set up inventory and POS systems
• Launch marketing campaigns (online + offline)
• Run grand opening promotions to build footfall

For online and hybrid retail:

• Set up an e-commerce store
• Register with logistics platforms and local payment gateways

Final Thoughts

Whether you’re a solo entrepreneur or expanding a global brand, the UAE offers unmatched retail potential. The key is understanding the legal, financial and operational landscape.

By working with experienced consultants and choosing the right structure, you can join the ranks of top retail companies in UAE and make your mark in one of the world’s most exciting markets.

Ready to Launch Your Retail Business in the UAE?

From business registration to finding the perfect shop location we’ve helped hundreds of retail companies in Dubai set up successfully.

Contact us today for a free consultation and retail business setup support tailored to your goals.