How To Start A Grocery Business Setup In Dubai?


The UAE enjoys a modern, diverse, and growing retail food sector. The emergence of hypermarkets or grocery store in recent years has led to a number of new players in the large store market. An estimated 90 percent of food is imported and prices are relatively high given transportation costs and exchange rate fluctuations.


Retail development is more focused in Abu Dhabi, Dubai, and Sharjah, the three largest emirates of the UAE which account for nearly 75 percent of the population, major retailers are including smaller emirates in their expansion plans. Consumers in the three large emirates tend to shop more at larger stores and less at smaller grocery and convenience stores; such stores are relied upon for last-minute food needs. However, in the more distant suburbs and the less-populated areas of the country, grocery and convenience stores play an important role in the retail business. Hypermarkets, superstores, and supermarkets, despite their limited number, are gradually gaining larger market share, accounting for about 50 percent of all retail sales. Smaller-sized groceries and convenience stores account for the balance.


What could be more on-demand and in-demand than the grocery business in the UAE? Now a number of new online businesses are working to disrupt the traditional shop front industry by offering customers business models that play to their needs. The profit in the grocery business depends on the ways in which you are running your business. For efficient business management, you have to discover the latest market trends and understand the future market growth for the grocery industry in UAE. One has to analyze the most updated research data, competitive threats and plan the strategy accordingly.


Grocery Business is the cleanest- dirty business in the world, and the Dubai market is no exception. Being a fast-paced city, the working individuals always prefer getting this “dirty” job outsourced! so like any other business in Dubai, it all comes down to Location and the western ex-pats (in and around the New Dubai area – JBR/JLT/Marina, etc.) are keener to have laundry service on a regular basis.


  • The U.A.E. enjoys one of the highest per capita incomes in the world.
  • The retail sector continues to grow and modernize as reflected by the resources devoted to upgrading existing stores and construction of new outlets.
  • The U.S. enjoys a fixed exchange rate with the UAE Dirham.
  • U.S. products are perceived as high quality and importers like to deal with U.S. suppliers.
  • The U.A.E. imports 85 percent of its food requirements.


  • Most growth in the retail sector is occurring in large-sized stores. Consumers tend to conduct their primary shopping in larger stores, but some stores are opening smaller stores in newly developed residential areas.
  • Hypermarkets, supermarkets, and superstores are generally located in urban areas. Smaller-sized stores are scattered in urban, suburban, towns, and rural areas, with a larger concentration, found in the country’s interior.
  • Locally processed food (often with imported ingredients) may represent only 20 percent of all retail products but this sector is slowly growing. New-to-market products are welcome, but promotion is vital.

Drawn by the country’s affluence, food suppliers from all over the world vigorously compete for market share. EU and Asian products pose the greatest competition to U.S. products. Both hold a proximity advantage, which translates to lower freight costs. Locally processed food products are limited in range and are most competitive in the categories of snack food, juices, poultry, bottled water, dairy products, and some confectionery items.


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Mainland Company Setup

Complete exemption from corporate tax
Possible to operate from UAE
No Capital requirements
No currency restrictions
Employment visa processing made simple
Repatriation of profits and capital
No audit requirements
Minimum responsibility and maximum benefits
Single person can open up an LLC
The maximum number persons or employees an LLC can have is 50
Corporate bank account in UAE
The UAE Companies law does not prescribed any minimum share capital but the entity should have adequete capital to achieve the incorporation purpose. Normally accepted minimum share capital for an LLC registered in Dubai was AED 100,000.

Presently, there is no requirements to deposite the share capital in UAE local bank.

Draft the MOA and AOA
Help in obtaining approval from DED
Registering the company name
Acquiring out an office space