Dubai is witnessing a coffee revolution. Beyond regular cafés, the rise of specialty coffee shops in Dubai has transformed how residents and tourists enjoy their daily brew. With a growing culture of third-wave coffee, international flavors, and Instagram-worthy spaces, opening a specialty café in Dubai is one of the most promising small business ideas in the UAE today.
If you’re wondering about costs, licenses, and the latest coffee shop trends, this guide will help you map out the journey. And if you’re serious about launching your own café, the experts at Raes Associates can walk you through the process. 📞 Connect with us today.
Why Coffee Shops Are Thriving in Dubai
Dubai’s café scene is booming because of three main reasons:
- High demand among expats and locals – Coffee culture is deeply social, with residents preferring unique café experiences over chain stores.
- Tourism growth – With millions of annual visitors, specialty coffee shops are hotspots for global travelers.
- Trends in wellness & luxury – From matcha lattes to plant-based milk, cafés align with lifestyle and wellness trends.
The city’s multicultural population ensures that both traditional Arabic coffee and trendy international blends find their loyal fans.
If you want to explore niche F&B ideas, you can also read our guide on starting a matcha business in Dubai.
License Requirements for Coffee Shops in Dubai
To open a coffee shop in Dubai, you’ll need a commercial license. Here are the steps:
- Choose your business structure – LLC or sole proprietorship (mainland) or a free zone entity.
- Trade name registration – Select and register a name with the DED.
- Initial approval – Secure permits from the Department of Economic Development (DED) or relevant free zone.
- Food & Beverage License – Obtain approvals from Dubai Municipality for food safety, hygiene, and shop fit-outs.
- Location approval – Your café must meet zoning and safety standards.
In many cases, entrepreneurs ask whether expats can fully own a café. Yes—thanks to updated UAE regulations, foreigners can now own 100% of their coffee shop if registered properly.
For more insights, check our guide on restaurant license costs in Dubai.
Cost of Opening a Specialty Coffee Shop in Dubai
The cost to open a coffee shop in Dubai depends on your size and concept:
- Small café or kiosk – AED 150,000–250,000
- Mid-sized specialty coffee shop – AED 300,000–500,000
- Premium or themed café – AED 500,000+
Your expenses will include:
- Coffee shop license Dubai fees (approx. AED 10,000–15,000)
- Rental costs (location plays a huge role in profitability)
- Fit-out and interior design (specialty cafés often invest heavily in aesthetics)
- Coffee machines and equipment
- Staff salaries and training
- Marketing & branding
Many entrepreneurs underestimate hidden costs such as barista training, waste disposal permits, and delivery platform commissions. Planning these early helps avoid surprises.
Profitability: Is Opening a Café in Dubai Worth It?
Entrepreneurs often ask, “Is opening a café in Dubai profitable?” The answer is yes, with the right strategy. Specialty cafés in Dubai can charge AED 20–40 per cup, compared to regular cafés offering AED 10–15. With high footfall, loyalty programs, and Instagram-driven popularity, specialty coffee shops achieve faster ROI than many other businesses.
Mobile coffee trucks are also gaining traction as they require lower setup costs. Curious? Read our detailed guide on getting a food truck license in Dubai.
Specialty Coffee Trends in Dubai 2025
Dubai’s coffee culture is shifting quickly. Current trends include:
- Third-wave coffee – Focus on sourcing, roasting, and brewing unique beans.
- Sustainable & ethical sourcing – Customers prefer eco-conscious brands.
- Cold brew & nitro coffee – Popular among younger audiences.
- Café + coworking spaces – Blending work and lifestyle.
- Tech-enabled cafés – Digital menus, cashless payments, and delivery apps.
Entrepreneurs who integrate these trends into their coffee shops stand out from the competition.
Do You Need a Local Partner for a Coffee Shop?
Previously, foreigners required a local sponsor to open a café in Dubai. However, today, you can own 100% of your coffee shop in many mainland sectors and all free zones. For entrepreneurs unsure whether mainland or free zone is better, free zones offer lower startup costs, while mainland cafés enjoy broader market access.
Step-by-Step Guide to Starting Your Coffee Shop in Dubai
With the right steps, you can turn your specialty café dream into a thriving venture in one of the world’s busiest coffee markets. Here’s a simplified roadmap:
- Define your concept – specialty café, premium lounge, or mobile unit.
- Register your trade name and business activity.
- Apply for initial DED approval.
- Obtain a food & beverage license.
- Rent and fit out your café in compliance with Municipality rules.
- Hire qualified baristas and staff.
- Launch with a strong marketing plan.
At this stage, having business setup consultants like Raes Associates ensures that you meet every regulation without costly delays. 📞 Contact our team now.
Choosing the Right Location for Your Café
A key factor in café success is location. High-traffic areas like Jumeirah, Downtown Dubai, and Business Bay are popular but come with higher rents. For budget-friendly yet promising areas, consider Dubai Silicon Oasis or community malls.
Common Challenges to Expect
Like any business, cafés face challenges such as:
- High rental costs in prime areas
- Intense competition from established brands
- Licensing delays if documents are incomplete
- Staffing shortages for trained baristas
However, with proper planning, training, and branding, these challenges can be minimized.
Launch Your Specialty Coffee Shop with Expert Help
Dubai’s café market continues to expand, offering incredible opportunities for entrepreneurs. From coffee shop licenses in Dubai to trend insights and compliance, the process requires careful execution.
Whether you’re planning a small café, a premium roastery, or a mobile coffee truck, professional guidance ensures smooth licensing and faster profitability.
📞 Ready to brew success? Reach out to Raes Associates today.
FAQs on Coffee Shop Business in Dubai
Q1. How much does it cost to open a coffee shop in Dubai?
Opening a café typically costs between AED 150,000 and AED 500,000, depending on size, concept, and location.
Q2. What license do I need to open a coffee shop in Dubai?
You need a commercial license plus Dubai Municipality’s food & beverage approval.
Q3. Can expats own a coffee shop in Dubai?
Yes, expats can fully own cafés through free zones or 100% mainland ownership (in many sectors).
Q4. What are the current coffee shop trends in UAE?
Third-wave coffee, cold brews, coworking café models, and sustainability-driven branding are trending.
Q5. Do I need a local sponsor to open a café?
No, under updated laws, foreign investors can own cafés outright without a local partner.
