Dubai, the mighty cosmopolitan, is known for its wide variety of cuisines. It is home to world-famous delicacies like Manousheh, Iranian Sangak, Oozie, Mahalabiya, and more. The list can go on and on. This makes opening a catering business in Dubai a highly lucrative entrepreneurial opportunity.
The Cosmopolitan is well known not only for its food but also for hosting weddings and events. As a result, the demand for exceptional catering companies in Dubai that can offer a variety of delicacies is high. If the reports are believed, the UAE foodservice market will grow at a 6.8% CAGR from 2022 to 2027. So, if you wish to start a catering business in Dubai, obtaining a catering license in Dubai is crucial to ensure compliance with local regulations. Now is the perfect time to tap into this growing industry!
Factors to Keep in Mind Before Starting a Catering Business in Dubai
Like any other industry, a catering business in Dubai requires careful planning and organisation. Success in this competitive field depends on the synergy of a dedicated team, where each member contributes their expertise to ensure smooth operations and sustained growth.
Furthermore, you will need to follow specific rules and regulations depending on the type of catering activity you choose. Obtaining a catering license in Dubai is a crucial step in the process. As a result, you must consider certain factors before you start a catering business in Dubai.
Here are some key aspects to focus on:
1. Target Audience
Who will you cater to? Catering companies need to ensure that the food they conjure appeals to their target audience. Also, the nature of the event (public, corporate, private, etc.) will alter the menu. Determining and narrowing down the audience is pertinent since it will help you shape many other things. For instance, your menu or the food you offer.
2. Accepting Orders
How will you handle orders once you start a catering business in Dubai? Will you receive orders through telephone, walk-ins, or online platforms? If you plan to accept online orders, similar to an online food business in Dubai, you may need to invest in an app or a website. On the other hand, securing a physical office space will be necessary if you opt for walk-ins. Additionally, you must obtain a food delivery license in Dubai to comply with local regulations if you offer delivery services.
3. What’s Your USP?
How will you differentiate yourself from other catering businesses in Dubai? What is your strategy to stand out and attract more customers? Your unique selling proposition (USP) is crucial to building a strong brand presence. Depending on your services, such as live cooking stations or event catering for large-scale functions, you may need to apply for extra permits.
Read Also: how to start a restaurant business in UAE
Is the Catering Business Profitable in Dubai?
Yes, the catering business in Dubai is highly profitable, but its success depends on scale, pricing strategy, and operational efficiency.
Profit Margins & Revenue
The gross profit margin for catering businesses typically ranges from 40% to 60%, while net profit margins are around 10% to 15% after deducting all expenses like food costs, labour, rent, and marketing.
Small-scale catering businesses can generate around $5,000 monthly, whereas mid-sized businesses catering to corporate events or weddings can earn $25,000 monthly. High-end catering services focusing on luxury events can make up to $100,000 monthly.
Market Demand & Growth Potential
Dubai’s event industry is booming, and there is a high demand for catering services for corporate events, weddings, private parties, and high-end gatherings. Businesses that cater to niche markets, such as luxury, healthy, or international cuisine, can charge premium rates and increase profitability.
Catering License & Business Setup Costs
Obtaining a catering license is mandatory to start a catering business in Dubai. Depending on the business model and location, the costs, which include trade license fees, food safety certifications, and permits, range from AED 10,000 to AED 30,000. Running costs, including staff wages, rent for a central kitchen, and marketing, must also be factored in.
Key Factors for Profitability
- Volume & Pricing: Charging AED 100–500 per person for high-end services can significantly increase revenue.
- Reducing Waste & Costs: Optimising ingredient use and reducing food waste improves margins.
- Repeat Clients & Corporate Contracts: Regular clients and event partnerships ensure steady cash flow.
Overall, the catering business in Dubai is lucrative, but strategic pricing, quality service, and proper licensing are key to long-term success. To learn more about the catering business setup process, contact Shuraa Business Setup.
What Licenses are Needed to Start a Catering Business in Dubai?
Starting a catering business in Dubai requires several licenses and approvals to comply with local regulations. Here are the key licenses you need:
1. Trade License
- Issued by: Dubai Department of Economy and Tourism (DET) (formerly DED)
- Business Activity: Catering Services
- License Type: Commercial License
- Legal Structure: Sole Proprietorship, LLC, or Civil Company
2. Food License
- Issued by: Dubai Municipality – Food Safety Department
- Ensures compliance with food safety and hygiene regulations.
- Approval is required to submit a layout plan for the kitchen.
3. No Objection Certificate (NOC) from Dubai Municipality
- A No Objection Certificate (NOC) from Dubai Municipality is required to set up a central kitchen or catering facility.
- Approval based on compliance with food handling and safety standards.
4. Kitchen Approval & Health and Safety Permits
- Approval from Dubai Municipality to ensure the kitchen meets hygiene and safety standards.
- The facility must have proper ventilation, drainage, and pest control measures.
5. Vehicle Permit for Food Transportation (If applicable)
- Issued by: Dubai Municipality
- A vehicle permit from Dubai Municipality is mandatory if you plan to deliver food using transportation vehicles.
6. HACCP Certification (Highly Recommended)
- Hazard Analysis and Critical Control Points (HACCP) certification ensures food safety compliance.
- HACCP certification is essential for large-scale catering operations to ensure compliance with food safety standards.
How to Start a Catering Business in Dubai
Dubai’s thriving food and hospitality industry makes it an ideal place to start a catering business in Dubai. Whether you want to serve corporate events, weddings, or private gatherings, the demand for quality catering services is high.
However, starting a catering business requires following proper legal procedures, obtaining the correct catering business license, and complying with food safety regulations.
Here’s a step-by-step guide on how to start a catering business in Dubai:
Step 1: Decide on Your Catering Business Model
Before applying for a catering license in Dubai, define the type of catering business you want to operate:
- Corporate Catering: Serving offices, business meetings, and corporate events.
- Event Catering: Food for weddings, birthday parties, and social gatherings.
- Industrial Catering: Serving large-scale food requirements for schools, hospitals, and labour camps.
- Mobile Catering: Food trucks or portable kitchens for on-the-go service.
- Cloud Kitchen: A delivery-only model without a dine-in facility.
Your chosen model will determine the type of catering business license you need.
Step 2: Obtain a Catering License in Dubai
To operate legally, you must secure a catering business license from the Department of Economic Development (DED) or opt for a free zone license if you want 100% ownership. The licensing process involves:
- Choosing a trade name that follows Dubai’s naming regulations.
- Deciding on the legal structure (Sole Proprietorship, LLC, or Free Zone Company).
- Register with the DED or free zone authority for your catering services license.
- You must obtain initial approvals from the relevant authorities to proceed with the licensing process.
Step 3: Get a Food & Safety Permit
In addition to the catering business license, you need approvals from Dubai Municipality for food safety compliance. This includes:
- Food Code Compliance: Your kitchen setup must meet hygiene and safety standards.
- Health & Safety Training: Employees must undergo mandatory food handling and hygiene training.
- Kitchen Inspection: Your kitchen will be inspected to ensure proper storage, ventilation, and sanitation.
Step 4: Find the Right Kitchen Space
A catering business in Dubai requires a commercial kitchen that meets Dubai Municipality standards. You can:
- Rent a central kitchen in a dedicated food zone.
- Partner with an existing restaurant for kitchen space.
- Set up your cloud kitchen for delivery-based catering.
Step 5: Hire Skilled Staff
To run a successful catering business in Dubai, you need skilled chefs, food handlers, and delivery staff. Ensure your team has:
- Work visas and labour approvals from the Ministry of Human Resources and Emiratisation (MOHRE).
- Food safety training certification from Dubai Municipality.
Step 6: Market Your Catering Business in Dubai
Once you have your catering business license and necessary permits, focus on marketing strategies:
- Create a website and use SEO to attract online customers.
- Leverage social media platforms like Instagram and Facebook to showcase your menu.
- Collaborate with event planners and corporate clients to build partnerships.
- Offer promotions and discounts to gain a competitive edge.
Step 7: Ensure Compliance & Renew Your License
Your catering services license must be renewed annually. Dubai Municipality will inspect your business regularly to ensure it complies with food safety laws.
Starting a catering business in Dubai requires obtaining a catering license, securing a kitchen, and complying with regulations. Need assistance? Shuraa Business Setup can help you with the licensing process, documentation, and approvals.
Documents Required to Start a Catering Business in Dubai
Starting a catering business in Dubai requires several documents to comply with local regulations. Here’s a list of the key documents you’ll need:
- Trade Name Reservation Certificate
- Initial Approval Certificate
- Catering Business License
- Memorandum of Association (MOA)
- Ejari (Tenancy Contract)
- Food License
- Pest Control Contract
- Work Permits & Visas
- Occupational Health Cards
- Vehicle Permit for Food Transport (If required)
- Liquor License (If needed)
- Emirates ID
- Passport-size photograph
- Valid passport copy
- Business Plan
How Much Does It Cost to Start a Catering Business in Dubai?
The cost of starting a catering business in Dubai typically ranges between AED 12,000* and AED 15,000*. However, the exact cost of a catering business license depends on several factors, including the type of license, business location, and additional approvals required.
A catering license in Dubai is a one-time investment that can yield lucrative profits with the right business strategy. For expert guidance and an accurate cost estimate tailored to your business needs, contact Shuraa Business Setup.
Start Your Catering Business in UAE with Shuraa
Although getting a catering license in Dubai is relatively straightforward, getting professional help won’t hurt. Experts from Shuraa are fully knowledgeable about opening a business in Dubai and securing the necessary licenses. They will handle all the requirements, permissions, and paperwork on your behalf. All you need to do is contact them.
Contact us at +97144081900 or send us a WhatsApp message at +971507775554. You can also drop an email at [email protected] and get answers to all your queries.
FAQs (Frequently Asked Questions)
1. Is catering profitable in Dubai?
Yes, the catering business in Dubai is highly profitable, with gross profit margins ranging from 40% to 60%. High-end catering services can generate up to $100,000 monthly.
2. What licenses are needed for a catering business in Dubai?
You need a trade license, food license, NOC from Dubai Municipality, HACCP certification, and other permits depending on your business model.
3. How much does it cost to start a catering business in Dubai?
The cost typically ranges between AED 12,000* and AED 15,000*, depending on the business model and location.
4. What are the emerging trends in Dubai’s catering industry?
Emerging trends include cloud kitchens, AI-driven menu planning, sustainable catering practices, and the use of food delivery apps.
5. What are the challenges of starting a catering business in Dubai?
Challenges include high competition, strict food safety regulations, and the need for a strong USP to stand out in the market.
*Note: The information in this post is for general guidance only and may change due to updates in government policies or regulations.
