Dubai is one of the world’s most exciting cities for dining and food business. People from everywhere live here, and they always look for new places to eat, drink, and relax. This is why opening a restaurant in Dubai can be a very smart business move. But before you start, you need to understand the real costs involved.

Many new restaurant owners focus only on rent and fit-out, and forget about licensing and approvals. The total cost of a restaurant license in Dubai is more than just one fee. It includes approvals, food safety checks, and ongoing expenses that can surprise you if you are not prepared. This guide explains the full cost breakdown, step-by-step process, and what to budget for, so you can plan your restaurant setup with confidence.

What Is a Restaurant License in Dubai?

A restaurant license in Dubai is an official permit that allows you to run a food business that serves customers at a physical location. This license confirms that your business is registered legally and meets the required rules for food preparation, hygiene, and safety. Without this license, you cannot operate a restaurant or serve food to the public.

A restaurant license is different from other food-related permits. For example, a food truck license is for mobile food service, and a catering license is for preparing food for events or deliveries. A cloud kitchen license is for delivery-only operations with no walk-in customers. Each type of permit has different rules, costs, and approvals. Choosing the correct license from the start helps avoid delays and fines later.

The main authorities involved in issuing a restaurant license in Dubai are the Dubai Department of Economy & Tourism (DET/DED) and the Dubai Municipality’s Food Safety Department. The DET/DED handles business registration, trade license issuance, and approvals. Dubai Municipality checks your kitchen setup, hygiene standards, and food safety compliance to ensure your restaurant meets the required rules.

Types of Restaurant Licenses Required in Dubai

Opening a restaurant in Dubai requires more than just one license. You must secure several permits to make sure your business is legal, safe, and fully approved. The main licenses and approvals you need are listed below.

1. Trade License

This is the primary business license issued by the Dubai Department of Economy & Tourism (DET), previously known as the Department of Economic Development (DED). It allows you to legally operate a restaurant in Dubai. The trade license also confirms your business activity and structure, such as whether you are a sole establishment, partnership, or company.

2. Food Establishment Permit

This permit is issued by Dubai Municipality’s Food Safety Department. It confirms that your kitchen and food handling meet required hygiene and safety standards. The food establishment permit is mandatory for any restaurant or food business in Dubai.

3. Municipality Approval for Kitchen Layout

Dubai Municipality must approve your kitchen layout before you start operations. This includes the design of cooking areas, storage, waste disposal, and ventilation. A correct layout is important for passing inspections and avoiding delays.

4. Health and Safety Certificates

Your staff must have food handler certificates and medical fitness tests. These certificates prove that employees understand food safety and are fit to work in a food business. These documents must be renewed regularly.

5. Additional Permits (if applicable)

Depending on your restaurant concept, you may need extra approvals such as:

• Shisha permit (if you plan to offer shisha)
• Liquor license (if you want to serve alcohol)
• Outdoor seating permit
• Special event or catering permits

Each of these permits requires additional approvals and fees.

Core Components of Restaurant License Cost in Dubai

Opening a restaurant in Dubai involves multiple approvals and fees. The total cost is made up of government charges, municipality approvals, food safety requirements, and setup expenses. Understanding each component helps you plan your budget accurately and avoid unexpected costs.

A) Government & Registration Fees

These fees are required to legally register your restaurant and start operations.

1. Trade Name Reservation & Initial Approvals

You must first reserve a unique trade name and receive initial approval from the authorities. This step confirms that your business activity is acceptable and that your name follows Dubai’s rules. Estimated cost: AED 600 – 1,000

2. DED Trade License Fee

The main business license is issued by the Department of Economy & Tourism (DET/DED). This fee is the core part of the license cost and varies based on business operations, structure, and location. Estimated cost: AED 15,000 – 25,000

3. Ejari Tenancy Registration & Required Registrations

To get approvals, you need a legal tenancy contract for your restaurant space. Ejari registration confirms your lease and is mandatory for licensing. Estimated cost: AED 200 – 400

Total Government & Registration Fees: AED 15,800 – 26,400

B) Dubai Municipality & Food Safety Approvals

Dubai Municipality is responsible for food safety and hygiene regulations. These approvals are mandatory for all restaurants.

1. Food Establishment Permit & Inspections

This permit confirms your restaurant meets hygiene standards. It includes inspections and approval of your kitchen setup. Estimated cost: AED 2,000 – 4,000

2. Fire & Safety NOC

Restaurants must pass fire safety checks. This includes the fire alarm system, extinguishers, emergency exits, and safety equipment. Estimated cost: AED 1,000 – 3,000

3. Kitchen Layout & Food Safety Compliance

Your kitchen design must be approved by Dubai Municipality. The layout must follow hygiene rules, storage requirements, and proper ventilation. Estimated cost: AED 1,500 – 3,500

Total Municipality & Food Safety Approvals: AED 4,500 – 10,500

C) Additional Mandatory Fees

These are extra fees required to keep your restaurant legally compliant.

1. Health Cards & Food Handler Certificates

All staff involved in food preparation must have health cards and food safety training. These certificates must be renewed periodically. Estimated cost: AED 250 – 350 per staff member

2. Signage and Regulatory Permits

Before installing your signboard, you must obtain approval from the authorities. This includes size and placement rules. Estimated cost: AED 500 – 1,500

3. Optional Permits (Liquor, Shisha, Specialty)

If your restaurant plans to serve alcohol, offer shisha, or run special food services, additional permits are needed. These permits have separate fees and strict regulations. Estimated cost: Varies widely (can range from AED 10,000 – 50,000+ depending on the permit)

D) Professional and Setup Costs

These costs are not mandatory by law, but they are commonly required for a smooth setup.

1. Consultancy or PRO Service Fees

Many business owners use professional services to manage paperwork, approvals, and licensing. This saves time and reduces the risk of errors. Estimated cost: AED 3,000 – 8,000

2. Legal Documentation (MOA, Notarization)

If you set up a company or partnership, legal documentation and notarization may be required. Estimated cost: AED 2,000 – 5,000

3. Optional Chamber of Commerce Registration

Some businesses choose to register with the Chamber of Commerce for added credibility and networking opportunities. Estimated cost: AED 500 – 1,500

Total Estimated Restaurant License Cost in 2026

The cost of opening a restaurant in Dubai can vary widely depending on your business model and the approvals required. The figures below are realistic ranges based on common setups seen in the market. These estimates only cover licensing and approvals. Rent, fit-out, equipment, visas, and staff costs are separate and can be much higher.

1. Basic Setup (AED 30,000 – 45,000)

This option is suitable for small restaurants or cafes with a simple menu and basic kitchen setup. It includes the trade license and the main municipality approvals needed to operate legally. It is the most affordable option but may not support larger or high-volume operations.

2. Standard Restaurant (AED 45,000 – 70,000)

This is the most common category for a typical restaurant. It includes a full food license, inspections, fire and safety approvals, and additional mandatory fees. This setup is suitable for restaurants with dine-in services, more staff, and a wider menu.

3. Premium Concept (AED 70,000 – 100,000+)

This range applies to larger restaurants, prime locations, or specialized concepts. It includes higher approval costs and optional permits such as alcohol or shisha. Premium setups often require more inspections, stronger safety systems, and more extensive documentation.

Important Note: These are estimates only. Final costs depend on your restaurant size, location, menu type, and required approvals. For a precise cost breakdown tailored to your plan, it is best to consult a professional business setup service like IBG Consultancy.

Hidden & Ongoing Costs to Budget For

Once your restaurant is open, the costs do not stop. The first ongoing expense is annual license renewal. Every year, you must renew your trade license and pay the municipality fees again. If you miss the renewal deadline, you may face fines or even temporary closure. This is why it is important to plan for these yearly costs from the start.

Another major ongoing cost is health card renewals and inspections. All food staff must keep their health cards up to date, and Dubai Municipality may conduct regular inspections to ensure your restaurant follows hygiene rules. These inspections may require additional improvements or fees if standards are not met. Regular compliance is essential to avoid penalties.

You also need to budget for waste management and pest control contracts, which are mandatory for food businesses. These services are usually paid monthly or annually and are necessary to maintain a clean and safe environment. Lastly, staff visa renewals and labor costs are significant long-term expenses. Each employee visa must be renewed, and labor costs can increase over time, especially as your restaurant grows. Proper planning helps you manage these costs without affecting your profit.

Steps to Start a Restaurant License in Dubai

Follow this checklist step by step to avoid delays and ensure your restaurant opens on time. Each stage must be completed in the right order to meet Dubai’s rules and approvals.

Step 1: Choose Your Business Activity and Structure

Before anything else, decide what type of restaurant you want to open (fast food, casual dining, fine dining, etc.). Also choose your business structure (sole establishment, partnership, or company). This decision affects the type of license you need and the approvals required.

Step 2: Reserve Your Trade Name

Pick a unique name that reflects your brand and get it approved by the authorities. The trade name must follow Dubai’s naming rules, and it should not be similar to any existing business.

Step 3: Apply for Initial Approval

Once your trade name is approved, apply for initial approval. This step confirms your business idea is allowed and gives you permission to proceed with other steps such as choosing a location and preparing documents.

Step 4: Secure a Shop / Location and Register Ejari

Find a suitable location for your restaurant and sign the lease. Then register the tenancy contract through Ejari. This step is required for all food businesses and is needed before you can apply for municipality approvals.

Step 5: Submit Kitchen Layout and Get Municipality Approval

Prepare your kitchen layout drawing and submit it to Dubai Municipality. They will review your design for hygiene, ventilation, storage, waste management, and safety. If your layout meets the standards, you receive approval to proceed.

Step 6: Pass the Food Safety Inspection

Dubai Municipality will inspect your kitchen, storage, and overall hygiene standards. Make sure your staff have valid food safety certificates and health cards. If your restaurant passes the inspection, you can move to the final step.

Step 7: Final License Issuance

Once all approvals are completed, the final restaurant license is issued by the Dubai Department of Economy & Tourism (DET/DED). After receiving the license, you can officially open your restaurant and start serving customers.

Cost Saving Tips for New Restaurant Owners

Establishing a restaurant in Dubai can be expensive, but smart planning can reduce your costs. These tips help you save money without lowering the quality of your service.

1. Start with a Delivery-Focused Model or Smaller Footprint

Beginning with a smaller kitchen or delivery-only setup helps you reduce rent and fit-out costs. You can build your brand and customer base first, then expand to a larger space once your business grows.

2. Choose a Less Expensive or Emerging Location

Prime areas cost more for rent and approvals. A growing neighborhood can offer lower costs while still attracting customers if you have a strong menu and marketing plan.

3. Plan Compliance to Avoid Re-Inspection Fees

Failing inspections can delay your opening and increase costs. Make sure your kitchen layout, hygiene systems, and staff training meet all requirements before the inspection.

Common Mistakes to Avoid When Opening a Restaurant in Dubai

Many restaurant owners face delays or fines because of simple mistakes. Avoid these common issues to keep your business running smoothly and profitably.

1. Underestimating Food Safety & Utility Costs

Food safety rules are strict, and running a kitchen uses a lot of electricity and water. Many new owners forget to include these expenses in their budget.

2. Missing Specialized Permits

If you plan to serve alcohol, shisha, or host events, you need extra permits. Missing these permits can lead to fines or closure.

3. Failing to Renew on Time

License renewals and health card renewals must be done on time. Late renewals result in penalties and can even stop your operations.

4. Not Planning for Staffing or Visa Costs

Staff visas and labor costs are ongoing expenses. Not planning for them can cause financial pressure as your restaurant grows.

Ready to Start a Restaurant in Dubai?

Don’t guess the costs or risk delays. Contact IBG Consultancy today for a precise cost estimate and full guidance on securing your restaurant license. We’ll help you choose the right setup, complete all approvals, and start your restaurant business smoothly.

Frequently Asked Questions (FAQs)

1. How do I obtain a restaurant license in Dubai?

To obtain a restaurant license, you must submit a business plan, reserve a unique name for your restaurant, secure a restaurant space, and complete approvals from the Dubai Municipality and DET/DED.

2. What kinds of restaurant licenses are available?

There are different types depending on your concept, such as dine-in restaurants, fast food outlets, food trucks, and cloud kitchens. The cost and approval requirements depend on the type of restaurant license you need.

3. What is the first step to start a restaurant business in Dubai?

The first step is to create a strong business plan and choose a suitable location for your restaurant. This helps determine your license type and required approvals.

4. Do I need an alcohol license for my restaurant?

Yes, if you plan to serve alcohol, you must apply for a separate alcohol license. This is an additional requirement beyond the standard trade and food license.

5. What are the health and safety regulations for restaurants in Dubai?

Restaurants must follow strict food safety regulations and meet Dubai Municipality’s health and safety standards. This includes staff training, hygiene, and proper food handling practices.

6. Do I need a food safety license or food license from Dubai Municipality?

Yes. A food safety license is required for all food and beverage businesses, and it ensures the restaurant complies with Dubai Municipality’s food safety department rules.

7. How much does a restaurant license and setup cost in Dubai?

The cost of a restaurant license depends on the kind of restaurant, location of the restaurant, and the approvals needed. Costs can also vary based on whether your restaurant requires additional permits like alcohol.

8. Can I open a restaurant without a valid restaurant license?

No. Operating without a valid restaurant license is illegal and can lead to fines, closure, or other penalties.

9. How long does it take to get approval from the Dubai Municipality and obtain a food license?

The process of obtaining a restaurant license includes approvals from the Dubai Municipality’s food safety office and zoning checks. The timeline depends on your restaurant setup and how quickly you meet the requirements.

10. What makes a restaurant license necessary in Dubai?

A restaurant license ensures the restaurant complies with Dubai’s strict food safety regulations and health standards. It also confirms your trade license legally allows food and beverage activities.