The UAE has become a thriving hub for creative entrepreneurs, with candles and handmade crafts gaining popularity as profitable small businesses. From luxury scented candles to personalized handmade products, there is a strong demand both online and offline. If you’re passionate about turning your craft into a business, Dubai and the wider UAE offer excellent opportunities, but you must follow proper licensing, online selling rules, and compliance.
If you’re planning to start your candle or handmade crafts business in the UAE, here’s a comprehensive step-by-step guide covering licenses, costs, selling options, and compliance essentials.
Need expert help setting up your business in UAE? Contact Raes Associates today and get started easily.
Why Candle & Handmade Crafts are a Booming Business in UAE
Candles are no longer just for lighting, they represent luxury, relaxation, and style. Handmade crafts, too, are in high demand, especially among UAE residents and tourists who value unique, artisanal products. Platforms like Amazon.ae, Noon, and Etsy have made it easier than ever to sell handmade items directly to customers.
What makes this industry attractive in UAE:
- Growing online shopping culture – UAE consumers actively purchase niche and handmade products online.
- Tourism-driven demand – Visitors love authentic, handmade souvenirs.
- Flexible business models – Can be run as a home-based business, through local exhibitions, or online marketplaces.
- Low initial investment – Candle and craft businesses can start small and scale gradually.
Do You Need a License to Sell Candles & Handmade Crafts in UAE?
Yes, you need a trade license to sell candles or handmade crafts in the UAE, whether online or offline. Selling without a license is not legally allowed and could lead to penalties.
Here are the license options available:
- E-Trader License (DED Dubai)
- Best for UAE residents who want to sell from home through social media or small online stores.
- Cost: Around AED 1,070 per year.
- Limitation: Only for UAE nationals and GCC residents.
- E-Commerce License
- Ideal for expats and foreigners who want to sell through Amazon, Noon, or their own online shop.
- Cost: AED 5,000 – AED 12,000 depending on the authority.
- Available in Dubai mainland or in free zones like Sharjah, Ajman, or Dubai CommerCity.
- Home Business License for Crafts
- Allows you to sell small-scale handmade products from home, exhibitions, or markets.
- Perfect for those testing the market before scaling up.
Steps to Start a Candle or Handmade Crafts Business in UAE
- Choose Your Business Activity
Register your activity as “handmade products,” “candles trading,” or “online retail” depending on your niche.
- Select Mainland or Free Zone Setup
- Mainland license allows you to sell directly in UAE markets.
- Free zone license is cheaper and ideal for online-only businesses.
- Register Your Business and Get License
Submit documents such as passport, Emirates ID (if applicable), and trade name approval.
- Set Up Online Selling Platforms
- Register on Amazon.ae, Noon, or Etsy.
- Create your own Shopify / WooCommerce website.
- Market and Scale
Use Instagram, TikTok, and Facebook to showcase your products. Influencer collaborations work particularly well in the UAE.
Not sure which license suits you best? Talk to Raes Associates and get step-by-step guidance.
Cost of Starting a Candle or Handmade Business in UAE
- Trade License Fees: AED 1,000 – AED 12,000 (depending on license type).
- Raw Materials & Equipment: AED 3,000 – AED 10,000 for wax, fragrances, molds, packaging, craft supplies.
- E-commerce Store Setup: AED 2,000 – AED 8,000 (if using Shopify or custom site).
- Marketing & Branding: AED 2,000 – AED 5,000.
Selling Candles & Crafts Online in UAE
You can sell on:
- Amazon UAE – Large customer base, strong delivery network.
- Noon.com – Popular among UAE residents, good for beginners.
- Etsy – Best for international buyers looking for handmade products.
- Instagram / TikTok Shops – Perfect for visual appeal and reaching a younger audience.
If you’re interested in turning your culinary skills into a business, check out our guide on how to Sell Homemade Food Online in the UAE
Can You Sell at Exhibitions & Local Markets?
Yes, many small business owners sell candles and crafts at Dubai Flea Market, Global Village, and seasonal exhibitions. However, you must still have a valid trade license to participate legally.
This is a great way to test your products, build a customer base, and gather real feedback before scaling online.
Compliance Rules for Handmade Products in UAE
- Labeling requirements – Candles must include ingredients, safety instructions, and warnings.
- Product testing – Some handmade items (like skincare-infused candles) may need Dubai Municipality approval.
- Import rules – If sourcing raw materials internationally, customs clearance rules apply.
Looking for more creative business inspiration? Don’t miss our list of Small Business Ideas from Home in UAE
FAQs on Candle & Handmade Crafts Business in UAE
- Is candle making profitable in Dubai?
Yes. With low setup costs and high consumer demand, candle making can be a profitable small business, especially when combined with online sales. - Do I need a trade license to sell handmade crafts in UAE?
Yes, a license is mandatory whether you sell online, at markets, or from home. - Which is better for handmade businesses – e-trader license or e-commerce license?
E-trader is cheaper but limited to UAE nationals. Expats should choose an e-commerce or free zone license for more flexibility. - Can I sell handmade products on Amazon UAE without a license?
No, Amazon and Noon both require sellers to have a valid trade license in UAE. - How much does it cost to start a candle business in Dubai?
Expect AED 10,000 – AED 20,000 depending on scale, license, and branding. - Can I sell on Etsy from UAE?
Yes, you can sell globally on Etsy, but you still need a UAE trade license for operating legally.
If you want to explore more practical steps on entrepreneurship, read our detailed guide on How to Start a Small Business in Dubai
Why Work with Raes Associates?
Starting a handmade crafts or candle business in UAE involves paperwork, license approvals, and compliance with regulations. Raes Associates helps you with:
- Selecting the right license (E-trader, e-commerce, or free zone).
- End-to-end business setup support.
- Guidance on selling online and expanding your customer base.
Ready to launch your business? Contact Raes Associates today and get expert help.
