Author: Rashid Mohammed
Published: April 4, 2024
In a multicultural region with a diverse population, the UAE's food and grocery retail market is experiencing significant growth. In 2022, revenue reached $36.5 billion, demonstrating a compound annual growth rate of 6.4% between 2017 and 2022.
From local delicacies to coveted international brands, tourists and locals alike have created a high demand for a variety of food products. Key trends in the food retail industry include:
The UAE food delivery market is expected to reach $3.36 billion by 2027.
Wholesale suppliers play a crucial role in keeping retail outlets such as grocery stores stocked across the UAE. Major players in the industry include:
These companies cater to restaurants, supermarkets, and other retailers. While their reach may be widespread, UAE's dynamic population means that there is great opportunity for new wholesalers, along with new retailers, to thrive in this booming market.
For new players establishing themselves in the UAE, SPC Free Zone can demystify the red tape around the food industry and provide the right business licenses, bank accounts, and visas required for new ventures.
Considering the immense boom of the UAE food delivery market, this license is an important one. It specifically excludes stores, stalls, or markets, instead focusing on retail sale activities conducted through:
For retailers who want to prioritize online orders, this license is a must-have. To truly succeed with an online sales model, marketing and advertising is essential. With this license, retailers can experiment with everything from catalogs to social media to get their ad campaigns running.
| Requirement | Status |
|---|---|
| Third-party Approval | No third-party approvals required |
| Filing of Economic Substance Return | Exempt |
| Anti-Money Laundering Compliance | Exempt |
For entrepreneurs looking to enter the wholesale trading market, this is an incredibly popular business license. Wholesalers act as a crucial bridge between food producers and retailers.
As a wholesaler, an entrepreneur can choose what type of wholesaler they want to be:
The following categories require third-party approval from the Food Safety Department (Sharjah municipality), post obtaining your trade license:
Pet food trading requires third-party approval from the Food Safety Department (Sharjah municipality) prior to obtaining your trade license.
The following types of trading can be secured through this license without third-party approvals:
Note: Blending wine or other distilled spirits is excluded from this license.
| Requirement | Status |
|---|---|
| Third-party Approval | Required for specific categories (see above) |
| Filing of Economic Substance Return | Exempt |
| Anti-Money Laundering Compliance | Exempt |
This license is applicable for non-specialized stores. This refers to a type of store that sells, along with food, beverages, and alcohol, a large variety of other goods. These items can include:
Within this store, food, beverages, or tobacco must be predominant; one or more of these categories must be the main item being sold. For example, in a large store that carries both groceries and cosmetics, the number of food items must significantly outweigh the cosmetics.
Important Exclusion: This license does not permit combining retail sale of fuel alongside food and beverages, particularly if the fuel sale exceeds the sale of food significantly.
| Requirement | Status |
|---|---|
| Third-party Approval | Required from Security Industry Regulatory Agency (SIRA) and Food Safety Department (Sharjah Municipality), post obtaining trade license |
| Filing of Economic Substance Return | Exempt |
| Anti-Money Laundering Compliance | Exempt |
This license is applicable for specialized stores. This refers to a type of store that specifically only sells food, beverage, or tobacco products.
Important Exclusion: Manufacturing bakery products and baking at the store is excluded from this license.
With SPC Free Zone's instant licensing, the complications behind opening a specialized retail store are significantly reduced.
| Requirement | Status |
|---|---|
| Third-party Approval | Required from Food Safety Department (Sharjah Municipality), post obtaining trade license |
| Filing of Economic Substance Return | Exempt |
| Anti-Money Laundering Compliance | Exempt |
Not every entrepreneur kicks off with a large store at their fingertips. In the UAE, stalls and markets are an incredibly common sight, be it permanent fixtures or pop-ups. Food retailers can bring in high revenues by retailing at stalls and markets as well.
Under this business license, a retail trader can sell:
Important Exclusion: The sale of cooked/prepared food does not fall under this license. Business owners must stick to fresh items, meats, and other groceries.
With SPC Free Zone, instant licenses for retail outlets can fast-track an entrepreneur's vision. Benefits include:
| Requirement | Status |
|---|---|
| Third-party Approval | No third-party approvals required |
| Filing of Economic Substance Return | Exempt |
| Anti-Money Laundering Compliance | Exempt |
The wholesale industry is a massive, ever-changing entity. Commission agents, other wholesalers who are involved in bringing sellers and buyers together, keeping the supply chain active, or those handling commercial transactions in this space, benefit greatly from this license.
Amongst food, beverages, and tobacco, this license gives you the opportunity to expand your product base to include:
The following activities do not fall under this license:
| Requirement | Status |
|---|---|
| Third-party Approval | Required from Sharjah Municipality, Supreme Council of Energy, and Dubai Police, post obtaining trade license |
| Filing of Economic Substance Return | Exempt |
| Anti-Money Laundering Compliance | Exempt |
Explore other guides in the Activity Hub for exploring unique business ideas in Dubai and navigate the essentials of business setup with ease.