How To Start A Service Business In The UAE

Pauline Familara
Pauline Familara
11 August 2022
How To Start A Service Business In The UAE

Providing services in the domestic market and performing various services for legal entities, the local population, and numerous tourists is a profitable business in the UAE. The state pays great attention to the availability of special education and qualifications for the owners of such enterprises and employees of companies engaged in the service sector, having provided a unique process of registration and licensing of such companies in the country’s legislation. From this article, you will learn about what services are in demand in the UAE and how to open a beauty salon in Dubai or a company that provides other services in any of the 7 emirates of the country.

What Services Are In Demand In The UAE

If you decide to open a service company in the Emirates, choosing the right type of activity that meets the market’s needs is necessary. The most in demand in the UAE are such areas of the service sector as:

  • Public catering, including the activities of fast food enterprises, cafes, restaurants, and other establishments;
  • Public services imply a wide range of activities: from beauty salons, laundries, and ateliers to cleaning companies, car service centers, and workshops;
  • Medicine, with the organization of private clinics, medical centers, massage parlors, and diagnostic laboratories;
  • Business services – operation of call centers, data centers, translation bureaus, secretarial and accounting services;
  • Transport and logistics, which includes the provision of services for courier delivery of goods and storage of goods, car sharing, and rental of limousines and yachts;
  • IT services for software development, network setup, information security, or maintenance of computer devices and office equipment;
  • Consulting and management, including consultations on personnel and management issues, provision of specialized recommendations and services for project management;
  • Educational activity, provision of services for preschool education, secondary and higher education, training, and courses;
  • Services for leisure, entertainment, and sports, including the activities of fitness clubs, water parks, circuses, entertainment centers, and galleries.

When choosing a type of activity, one should consider the region’s peculiarities and local traditions. For example, before opening a massage parlor in Dubai, you must know that such services must be provided separately for women and men. Moreover, the service staff must be the same gender as the clients. If it is planned to give massage to both men and women in the same salon, it is necessary to provide a separate entrance and different reception hours for clients of different sexes.

What Ensures Business Success In The Service Sector In The Emirates

The success of the business in providing services in the territory of the United Arab Emirates ensures:

  • The high level of well-being of the population and its numerical growth creates a habit of a luxurious lifestyle and leads to a growing demand for quality services, including the premium segment;
  • The UAE government initiated state support of the service sector, including more than 30 strategies for developing the service industry. Implement strategies are expected to be until 2030;
  • Equal opportunities for conducting business related to the service sector for foreign and local entrepreneurs, which guarantees fair competition;
  • The availability of a large number of qualified local personnel and the possibility of attracting personnel from other countries with the granting of a resident visa;
  • Favorable tax climate – no corporate tax, taxes on dividends and income of individuals, the minimum rate of VAT is only 5%, and zero VAT is imposed on most services;
  • Financial freedom, transparency, and reduction of bureaucratic procedures to a minimum.

In addition, the UAE has a well-developed banking system that offers a wide range of financial services and products that facilitate business and promote its faster development.

How To Start Providing Services In The UAE

To open a business related to the service sector in the United Arab Emirates, you must:

  1. Choose a working business model and the place of its registration, analyzing the demand for services and the presence of competitors;
  2. Study the legislation from the point of view of the possibility of obtaining licenses and permits to carry out the selected type of activity. Find out if there are any additional requirements for getting a permit;
  3. To register a company, having previously rented an office. You will need to open a local company to provide services throughout the UAE. Such companies can be owned by a 100% foreign investor today without the involvement of a local partner, as it was until 2021. If you plan to provide services within a particular free economic zone, you can register a company in a free zone. Its content is cheaper and does not always require an audit;
  4. To rent premises for conducting business if the main activity of providing services is planned to be carried out outside the company’s office;
  5. Obtain a service license for the implementation of the selected type of activity and confirm the qualifications of employees or pass their accreditation in the controlling department, with the receipt of appropriate certificates and permission;
  6. Open a bank account in the territory of the Arab Emirates.

Opening a service business in the UAE is not as simple as it might seem. And even if you know how to open a beauty salon in Dubai, it is difficult to implement your ideas in practice without knowing all the intricacies of the laws of the Emirates and local business traditions. Dynasty Business Adviser will help you open any business in the UAE quickly and without problems.

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  • Economy : UAE: consequences of diversification. Retrieved January 15, 2011. Archived from the original on April 21, 2013.

Frequently asked questions

What Is the Most Profitable Services Business in the UAE?

Considering the growth of the country’s population and the large number of tourists arriving in the UAE, the business of providing services in public catering, recreation and entertainment, medicine, passenger transportation, car rental, and housing is characterized by high profitability. Business services are also in demand in the Emirates, primarily in the IT sphere. The need for them and the number of companies registered in the country constantly grow.

How Much Does It Cost to Open a Beauty Salon in Dubai?

The cost of opening a beauty salon in Dubai depends on the area of ​​the premises, its location, and the number of employees since each of them needs to issue a resident visa. In the best place in ​​Dubai, you will have to pay $25-35,000 only for the documents and the rent of the premises. Add to this amount the cost of furniture and necessary equipment.

How Difficult Is It to Open a Massage Parlor in Dubai?

There are specific requirements for opening a massage parlor in Dubai and other emirates. In addition to the fact that massage therapists must have certificates confirming their qualifications or pass accreditation in the UAE, they must provide separate services for men and women. It can be one salon with two entrances, which receives male and female visitors at different times. Moreover, they must be served by personnel of the same gender as the customers.

Is It Necessary to Have a Local Partner to Provide Services in the UAE?

To conduct business in the field of providing professional services to the population of the UAE, it is necessary to open a local (mainland) company LLC. Its registration does not require a local partner who is a citizen of the United Arab Emirates. Such a business may be 100% owned by foreign capital. But a National Service Agent must be appointed to represent the company’s interests in state bodies.

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