UAE has always opened its doors to foreign investors who want to invest and explore the business market. All the sectors have equal opportunities for individuals that have great future prospects. Food and beverage sector are one among the industries which has grown with the increasing number of investors and tourists. The increase in residential colonies also led to opening of more supermarkets and grocery stores. Many investors utilized this opportunity by opening grocery stores, supermarkets and hypermarkets to ease the shopping experience. If you are considering on how to setup a supermarket in UAE let us take a note of the following steps:
Drafting a Business Plan and Execution
A business plan is the foremost step before starting a supermarket. We need to take care of various aspects and formulate an action plan before jumping into the operations. The success of a supermarket is dependent on different factors like capital investment, accessibility to customers, location etc. An analysis of the market and license procurement also plays an important role.
Need a Local Sponsor
The supermarket setup in UAE requires aid from a local individual or a corporate partner. Moreover, the supermarkets are mostly setup on mainland which requires a local partner who owns 51% of the shares, whereas the rest is owned by the foreign investor.
Licensing and Trade Name
The supermarket you are going to setup needs approval from various government bodies. To open a supermarket in UAE you need to procure commercial license from Department of Economic Development. The trade name in the license should be in accordance with the name on the signage of the supermarket. Additionally, we should take a final approval from the Dubai Municipality and follow their guidelines before setting up a supermarket.
We should submit the documents like commercial license, tenancy contracts, approval letter from various government bodies, passport copies, etc. after proper verification to DED.
Interior and Exterior Design
The interior and exterior of a supermarket should comply with the guidelines laid down by Dubai Municipality. Exterior fittings like entrance doors, facades, walls etc. should be designed as per the rules. Besides we should also take proper care of the interiors like shelving space, racks, fixtures, lighting requirements etc.
Some rules of the Municipality on How to Setup Supermarket in UAE
- Address on the documents given to DED should be correct and any changes should be done with prior approval from DED.
- The supermarket should not sell counterfeit and fake trademarked items.
- Each purchase should have a proper invoice.
- The owners should take permission from the Municipality before setting up advertising boards.
- We should keep items marked and under common categories. Like dairy products, pulses, fruits, vegetables etc.
- The municipality prohibits any wholesale selling.
- The supermarket should take utmost care of the hygiene of the surroundings as well as the staff.
- It is important to register the trademark under the Ministry of Economy, in order to distinguish the products.
- All items should have proper expiry and manufacturing dates.
These are some of the points which are laid down by the Municipality. Besides, it is very important to respect and follow these rules for the efficient functioning of the supermarket.