How to Setup a Food & Beverage Business in the UAE

Afreen Razak

June 6, 2024

Setting up a food and beverage business in the UAE offers numerous benefits, making it an appealing opportunity for aspiring entrepreneurs. The UAE has a diverse and growing population with a strong demand for a wide range of culinary experiences, driven by locals, expatriates, and tourists.

The UAE provides convenient access to markets in the Middle East, Asia, and Europe, presenting significant export and import opportunities. The UAE government supports the food and beverage industry through favorable policies, seamless regulatory compliance processes, investment incentives, and world-class infrastructure, fostering an environment conducive to business growth. The country’s high standards of living and robust tourism industry further boost the demand for diverse food and beverage offerings.

If you are interested in starting a food and beverage business in the UAE, securing your business license with SPC Free Zone (SPCFZ) is a strategic choice. Entrepreneurs can achieve their goals and expand their businesses with the flexibility and convenience offered by SPCFZ.

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SPC Free Zone provides a variety of business activities under this license, allowing you to select those that align with your expertise or the type of business you want to explore.

4630.00: Wholesale of food and beverages

This is a business activity that entails purchasing large quantities of food and beverage products directly from manufacturers, producers, or importers and then selling them to retailers, restaurants, hotels, catering companies, and other businesses. This wholesale of food and the wholesale of beverages plays an integral part in facilitating the distribution of a diverse range of goods to different outlets, ensuring efficiency and cost-effectiveness for the end-consumer.

Numerous specialized business opportunities are available in this sector due to its diverse nature, such as the wholesale of fruit and vegetables, dairy products, eggs and egg products, edible oils and fats of animal or vegetable origin, meat and meat products, fishery products, sugar, chocolate, and sugar confectionery, bakery products, beverages, and coffee, tea, cocoa, and spices. In order to succeed in this type of business, it is important for wholesalers to have a strong understanding of global trade practices, market trends, storage requirements, quality control, food safety regulations, and efficient logistics.

Every single one of these categories is essential for the distribution of wholesale of food and wholesale of beverages to meet the final end-consumer. Here, we will elaborate further on some of the classes that fall under this category.

4630.01: Wholesale of fruits and vegetables

Fruit and vegetable wholesale is the process of purchasing large quantities of produce from farmers, growers, or importers and selling them to retailers, food service providers, or other businesses. This activity entails the storage, handling, and distribution of fresh produce to ensure its optimal condition when it reaches customers.

4630.02: Wholesale of dairy products

Wholesaling dairy products entails purchasing large quantities of milk, cheese, yogurt, and butter directly from dairy farms or manufacturers, whether locally based or imported. It is crucial for wholesalers in this sector to maintain strict temperature-controlled conditions for storing and transporting products to ensure freshness and quality.

4630.05: Wholesale of meat and meat products

The wholesale of meat and meat products involves acquiring different types of meat from producers and supplying them to supermarkets, butcher shops, and the hospitality industry. Wholesalers may also consider importing frozen meat for procurement. Strict adherence to health and safety standards is crucial in this sector to ensure hygienic handling, storage, and transportation of the meat.

4630.06: Wholesale of fishery products

Wholesale operations for fishery products primarily involve sourcing seafood from fishermen and fish farms. This business necessitates expertise in handling perishable goods to maintain their quality and safety. Efficient logistics and a thorough knowledge of seasonal availability are essential for achieving success in this industry.

4630.06: Wholesale of Coffee, Tea, Cocoa, and Spices

Wholesale activities in the coffee, tea, cocoa, and spice industries revolve around sourcing these products from global growers and producers and distributing them to retailers, cafes, and food manufacturers. To effectively cater to the varied preferences of their clients, wholesalers need to possess a thorough understanding of the origin, quality, and grading of these commodities.

This category excludes the blending of wine or distilled spirits.

Third-party Approval: After acquiring the business license for this activity, approval from the Food Safety Department (Sharjah Municipality) is necessary.
Filing of Economic Substance Returns: This requirement does not apply to business activities under 4630.00.
Anti-Money Laundering Compliance: This requirement does not apply to business activities under 4630.00.

4721.00: Retail sale of food in specialized stores

The retail sale of food in specialised stores is a unique business category focused on selling specific types of food products. They usually have a smaller selection, focusing on a specific brand or an in-house production. To put it another way, their range is more specialised than that of general supermarkets.

These establishments usually cater to the tastes and needs of a loyal customer base or those seeking to explore specialised stores. Exploring this type of retail sale involves a specific approach. Here’s a brief introduction to the world of specialized store retail:

Fresh or Preserved Fruit and Vegetables: These specialized stores sell a wide selection of fresh produce, including seasonal fruits and vegetables sourced from local farms or imported. They may also offer preserved options available year-round.

Dairy Products and Eggs: These stores retail a wide range of creamy cheeses, rich butters, and farm-fresh or organic eggs, catering to dairy enthusiasts who appreciate premium quality and a palette of flavors. Experts in dairy products, such as cheesemakers, butter specialists, or egg farmers, typically run this business model.

Meat and Meat Products (Including Poultry): Butchers or specialized outlets operate these stores, supplying high-quality cuts of beef, lamb, and poultry, as well as processed meat products such as bacon, sausages, deli meats, and pre-packaged cuts, directly from meat processing facilities.

Fish, other seafood, and products Thereof: These stores specialize in selling fish, shellfish, and various seafood products, offering fresh and top-notch options.

Bakery Products: These establishments specialize in retailing a wide range of delectable treats. These businesses usually provide an array of freshly baked goods that cater to both sweet and savory preferences.

Sugar Confectionery: These businesses specialize in selling a diverse selection of sugary treats for retail sale that cater to a broad spectrum of consumer tastes, offering everything from traditional candies to creative gourmet sweets.

Other Food Products: To cater to niche markets, specialty food stores offer a wide range of unique and gourmet food items not typically found in regular grocery stores.

This category excludes the manufacturing of bakery products, i.e., baking on premises.

Third-party Approval: After acquiring the business license for this activity, approval from the Food Safety Department (Sharjah Municipality) is necessary.
Filing of Economic Substance Returns: This requirement does not apply to business activities under 4721.00.
Anti-Money Laundering Compliance: This requirement does not apply to business activities under 4721.00.

4722.00: Retail sale of beverages in specialized stores

With a focus on the retail sale of beverages, you can tap into a vibrant and ever-changing market that is full of potential.

This business activity involves setting up a specialised store to satiate diverse palates, offering a range of artisanal sodas and organic juices. Given the growing demand for distinctive and high-quality beverages, it is a perfect opportunity to embark on this dynamic industry and establish a specialized store that sets itself apart.

This category focuses on selling a variety of non-alcoholic beverages (not for consumption on the premises) that customers can enjoy at home or on the go. The retail sale of beverages in specialised stores highlights quality, variety, and unique brands.

Third-party Approval: After acquiring the business license for this activity, approval from the Food Safety Department (Sharjah Municipality) is necessary.
Filing of Economic Substance Returns: This requirement does not apply to business activities under 4722.00.
Anti-Money Laundering Compliance: This requirement does not apply to business activities under 4722.00.

2825.00: Manufacture of machinery for food, beverage, and tobacco processing

This business activity involves designing specialized equipment essential for various stages of production in food, beverage, and tobacco processing. The focus is on manufacturing machinery that improves efficiency, high quantity, quality, and safety in product processing. This business activity has a broad classification that can be explored and includes:

Manufacture of agricultural dryers: This class consists of machines designed to dry grains, fruits, and vegetables. These machines effectively reduce moisture levels, thereby preventing spoilage and enabling long-term storage.

Manufacture of machinery for the dairy industry: This type of machinery comprises a range of equipment utilized in the processing of dairy products. This includes cream separators, homogenizers, butter chums, cheese presses, and molding machines specifically designed for butter and cheese production.

Manufacture of machinery for the grain milling industry: This equipment is designed for the cleaning, sorting, and grading of seeds and grains. It also covers flour and meal production using winnowers, grinding mills, sifters, bran cleaners, and pea splitters.

Manufacture of presses, crushers, etc. used to make wine, cider, fruit juices, etc.: This type of equipment is used for extracting juices from fruits and other raw materials, specifically for the wine, cider, and fruit juice industries.

Manufacture of machinery for the bakery industry or for making macaroni, spaghetti, or similar products: These types of machines comprise a range of equipment, such as bakery ovens, dough mixers, molders, slicers, and cake depositing machines. Their design ensures the efficient production of large quantities of bread, cakes, and pastries.

Manufacture of machines and equipment to process diverse foods: This class includes machinery used in the production of confectionery, chocolate, sugar, and brewing, as well as the processing of meat, poultry, fruits, vegetables, fish, and seafood. It also covers equipment for filtering and purifying. Moreover, it encompasses additional equipment for the industrial processing or production of food or beverages.

Manufacture of machinery for the extraction or preparation of animal or vegetable fats or oils: These machines are manufactured for the extraction and preparation of animal and vegetable fats and oils, which are crucial for the production of cooking oils and margarine.

Manufacture of machinery for the preparation of tobacco and for the making of cigarettes or cigars, or for pipe or chewing tobacco or snuff: The machinery available for tobacco processing encompasses all the necessary equipment for the preparation and manufacturing of various tobacco products, such as cigarettes, cigars, and pipe tobacco. It encompasses the entire process, from raw processing to finished goods production.

Manufacture of machinery for the preparation of food in hotels and restaurants: This is specialised and top-of-the-line machinery for food preparation in commercial kitchens. The design of this equipment aims to provide the hospitality industry with efficient and high-volume production solutions.

This classification under this business activity excludes the manufacture of equipment for irradiating food and milk, the manufacturing of machinery for packing, wrapping, and weighing, and the manufacturing of machinery for cleaning, sorting, or grading eggs, fruit, or other crops such as seeds, grains, and dried leguminous vegetables.

Third-party Approval: There is no third-party approval required for this business activity.
Filing of Economic Substance Returns: This requirement does not apply to business activities under 2825.00.
Anti-Money Laundering Compliance: This requirement does not apply to business activities under 2825.00.

3312.16: Repair and maintenance of food, beverage, and tobacco processing machinery

This business activity revolves around the repair and maintenance of food, beverage, and tobacco processing machinery. Businesses in this field specialize in keeping crucial industrial equipment in top shape. This includes services such as sharpening and installing blades for commercial and industrial machinery, ensuring optimal functionality and maximum effectiveness.

The main focus is on performing regular maintenance checkups to keep machinery in optimal condition, minimize downtime, and prevent expensive breakdowns. Additionally, welding repair services are essential for fixing damaged or worn-out parts and restoring machinery to its original condition. Specialists in the field understand the importance of safety and operational efficiency, ensuring machines perform consistently and have a longer lifespan. Efficient repair and maintenance are crucial for maintaining productivity and quality in the food, beverage, and tobacco processing industries.

The classification under this business activity excludes the installation, repair, and maintenance of furnaces and other heating equipment, as well as the installation, repair, and maintenance of elevators and escalators.

Third-party Approval: There is no third-party approval required for this business activity.
Filing of Economic Substance Returns: This requirement does not apply to business activities under 3312.16.
Anti-Money Laundering Compliance: This requirement does not apply to business activities under 3312.16.

4711.00 Retail Sale in Non-Specialized Stores with Food or Beverages Predominating

This business activity involves retail sale in non-specialized stores that primarily sell food products, beverages, and tobacco, along with a range of other products. These stores provide a broader shopping experience involving the retail sale of varied products, which usually meet lifestyle and everyday requirements. Common additional products include clothing, furniture, appliances, hardware, and cosmetics.

The main advantage of these non-specialized stores is their convenience and wide selection, providing an extended shopping experience. Customers have the convenience of purchasing a wide range of essential food items, beverages, and tobacco, as well as non-food items, all in one place. These stores serve as a convenient hub for all shopping needs.

The classification under this business activity does not include the retail sale of fuel in combination with food, beverages, etc., with fuel sales dominating.

Third-party Approval: After acquiring the business license for this activity, approval from the Food Safety Department (Sharjah Municipality) is necessary.
Filing of Economic Substance Returns: This requirement does not apply to business activities under 4711.00.
Anti-Money Laundering Compliance: This requirement does not apply to business activities under 4711.00.

4781.00 Retail Sale Via Stalls and Markets of Food and Beverages

The retail sale of food and beverages through stalls and markets encompasses a broad range of activities, including selling food and drink products directly to customers through temporary or semi-permanent setups. Food trucks, pop-up businesses, street vendors, and farmers’ markets are all examples of this. Because of its convenience, it is popular with business owners and customers.

Sellers in this line of business usually have a diverse selection of food and beverages, including fresh fruits and vegetables, ready-to-eat meals, snacks, drinks, and specialized food items. This type of business can increase exposure and revenue by positioning itself in high-demand zones, during special events, or in heavily populated regions. The model is attractive to new entrepreneurs and small businesses because it has lower operational and startup costs than traditional storefronts. These retail sellers can better suit their customers’ interests and increase satisfaction through direct customer interaction.

Third-party Approval: There is no third-party approval required for this business activity.
Filing of Economic Substance Returns: This requirement does not apply to business activities under 4781.00.
Anti-Money Laundering Compliance: This requirement does not apply to business activities under 4781.00.

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