Everyone needs Laundry at least every week, especially in a busy city such as Dubai. Due to Dubai’s busy lifestyle, many residents do not have the time and effort to do their laundry. That is why laundry service is thriving there.
It’s a profitable and highly in demand service. If you are looking to start a laundry setup in Dubai and don’t know where to start, this guide walks you through the process and everything else you need to get started.
Understanding Laundry Business in the UAE
This business generally includes the cleaning service for clothes. It could have several models and setups, e.g., you can have laundromats or dry cleaners, and you can let people walk in and do their laundry themselves or offer pickup and delivery services. A traditional laundry service must offer services such as washing, drying, pressing, and cleaning.
Is Laundry a Profitable Business?
The demand for this service is only getting higher. The laundry care market in the UAE is estimated to be USD 256.12 million in 2025, while the laundry appliance market in the country is estimated to reach USD 371.29 million this year.
Also, there’s been a hike in tourism in the UAE, which has substantially increased the demand for the service. It is safe to conclude that not only this business is profitable, but there’s hardly any risk.
Benefits of Laundry Setup in Dubai
Here are the benefits of having a laundry setup in Dubai:
- Demand from residents, businesses, and tourists ensures a steady customer base.
- Strong market growth with a projected USD 462.94 million industry by 2029.
- Low competition in specialized services like eco-friendly and premium laundry.
- Opportunity to leverage technology with app-based and pickup/delivery models.
- Recurring revenue model with loyal customers and repeat business.
- Comparatively low startup costs compared to other service industries.
- Government support for business setup and easy licensing procedures.
- High profit margins, especially for premium and express services.
- Scalability options, from small shops to multi-location franchises.
- Growing demand for sustainability, opening doors for green laundry solutions.
Business Models in the Dubai Laundry Industry
| Business Model | Description | Pros | Cons |
|---|---|---|---|
| Traditional Brick-and-Mortar | Physical laundries offering walk-in and pickup services. | Established customer base, steady income, trust factor. | High rental costs, limited to local customers. |
| Mobile & On-Demand Apps | App-based services with pickup and delivery. | Convenience, scalability, wider reach, lower overhead costs. | Requires strong digital presence and app investment. |
| Premium Services | High-end dry cleaning and garment care. | High profit margins, attracts affluent customers. | Limited target market, high operational costs. |
| Budget-Friendly Laundries | Low-cost, self-service, or basic laundry services. | Mass appeal, consistent demand. | Lower margins, price-sensitive customers. |
How to Start a Laundry Business in Dubai
The process is simple and streamlined. The government policies and licensing authorities make it easier for new businesses to start and thrive. Here is the step by step process you can follow to start your setup:
1. Choose Your Business Type
Decide your business activities and come up with a business plan. See if you want a walk-in shop, pickup-and-delivery service, or an app-based laundry. Each has different costs and customers.
2. Pick a Business Name
Entrepreneurs must choose a name that is easy to remember and follows UAE rules. Avoid religious or offensive words. Check if the name is available before registering.
3. Get a Trade License
You need a laundry license from the Department of Economic Development (DED). Steps include:
- Choosing Mainland or Free Zone registration.
- Submitting your passport copy and business details.
- Registering under laundry services in the business category.
4. Find a Good Location
Pick a busy area with many customers. Residential areas, hotels, or business districts are good choices.
5. Get Permits and Approvals
Dubai has strict rules on cleaning businesses. You need:
- Ejari registration (rental agreement).
- Dubai Municipality approval for chemicals and water use.
- Health and safety permits for staff and equipment.
6. Buy Equipment
You have to get washing machines, dryers, steamers, and detergents. Also, it is better to choose eco-friendly machines to save water and electricity.
7. Hire Workers
Your staff should know how to wash and care for fabrics. Train them to give good customer service.
8. Advertise Your Business
Use social media, Google ads, and local flyers to attract customers. Offer discounts for first-time users. Partner with hotels and gyms for bulk orders.
9. Follow Business Rules
Renew your license every year and follow UAE labor laws. You can expand by opening more shops or franchising.
Cost Breakdown & Profit Expectations
Generally, the cost varies based on the scope of your business operations, location, rental space, license, etc. However, you can hope to start with a minimal investment of AED 50,000 and depending on your aspirations, you can go up to AED 200,000 to ensure your success in the market. It may sound like a lot from a far, but it has high profit margins. A sweet 30% to 50%, especially if you offer premium or express services.
Want to make more and spend less? Easy. Subscription plans keep cash flowing. Bulk deals attract big customers. Add-ons like shoe cleaning or steam ironing boost your sales. And don’t forget—energy-efficient machines cut bills, smart supplier deals save cash, and optimized delivery routes stop money from leaking.
Challenges & How to Solve Them
Dubai’s laundry industry is like a game of survival. Too many shops, too many price cuts, and customers jumping from one deal to another. So, how do you stand out? Be different. You can offer eco-friendly cleaning, super-fast service, and top-notch quality. Want loyal customers? Give them discounts for coming back. Reward them for referrals. Treat them like VIPs. And if you really want to grow? Go digital. Build an app. Partner with hotels and offices. Expand to new areas. This business isn’t just about cleaning clothes—it’s about cleaning up the competition.
Digital Transformation in the Laundry Industry
- Laundry Digitally? Laundry is now digital. App-based services let customers schedule pickups, track orders, and pay online—fast and easy. You have to know and follow trends of the day.
- Why Go Digital? Convenience is king. Customers don’t want to call or wait; they want instant booking with a tap.
- What About Traditional Practices? Traditional laundries are fading. Businesses that don’t go digital risk being left behind.
Winning with Digital Marketing
While following the trends of the day, you have to use the new strategies and marketing methods of the day as well. Here’s how you can leverage social media and the internet for upscaling your business:
- Social media is key. Use Instagram, TikTok, and Facebook ads to reach customers.
- SEO matters. Rank high on Google with a strong website and local business listings.
- Influencers build trust. Partner with bloggers and social media figures to get noticed.
- Loyalty programs keep customers. Offer referral rewards and app notifications to bring them back.
Frequently Asked Questions (FAQs)
1. What makes setting up your laundry a good idea in Dubai?
Dubai offers numerous opportunities for entrepreneurs due to its growing demand for laundry services. With a rising population and an increase in on-demand services, businesses catering to this need can thrive.
2. How much does it cost to open a laundry?
The license cost in Dubai varies based on factors like jurisdiction and business activities, location, and the scale of operations. Other expenses include rent, equipment, and staffing.
3. What are the steps to apply for a laundry license in Dubai?
To obtain the license, you must choose your business setup in Dubai, select the activities your business will undertake, and submit a license application through the Dubai Department of Economic Development.
4. Is establishing a laundry company considered a profitable business?
Yes, the profitability of the laundry company is high due to consistent services to meet customer needs. Many operators offer specific laundry services such as eco-friendly laundry to attract customers.
5. Can I operate your business legally without a license in Dubai?
No, conducting unlicensed business is a serious offense and can lead to heavy fines or closure for local sponsors as well as expats. You need a laundry license from the Dubai authorities to operate your laundry set-up legally.
6. What is the best location for a laundry trade?
The best location depends on your target customers. Mainland Dubai offers great opportunities for foot traffic, while across the UAE, there are options to cater to both residential and commercial clients.
7. What services like premium home and laundry care can I provide?
You can offer premium home and laundry care including professional laundry services, dry-cleaning, steam ironing, and even home and laundry care products for customer convenience.
8. How do I market my company in Dubai?
A Google Business Profile helps boost online visibility. Additionally, offering specific business solutions, leveraging diverse business strategies, and ensuring excellent customer service will help grow your thriving laundry.
9. Is the laundry sector a recession-proof business in Dubai?
Yes, this is a recession-proof business because clean clothing is always a necessity. The potential of the business remains strong regardless of economic shifts.
10. What permits do I need to start your business?
To start your business, you need a license to legally operate, approvals from local authorities, and compliance with hygiene regulations. The range of business activities will determine specific requirements.
