How to Start a Retail Store in Dubai: Free Zone vs. Mainland License
Adelya Gimazulina
Corporate Services Manager at My Business Consulting DMCC
Dubai is more than a city—it’s a global retail powerhouse. In 2023, UAE retail sales surpassed US $100 billion, and analysts predict they will reach $139 billion by 2028, growing at a 5.4 % CAGR. Dubai leads the charge, supported by over 105 million visits to Dubai Mall in 2023, a rise of nearly 20 % year-on-year.
That growth isn’t just happening in malls. In the first quarter of 2025, consumer spending across the UAE increased by 13% compared to the same period last year, driven by strong performance in both physical retail stores and online shopping. Dubai alone welcomed 7.15 million tourists in the first four months of 2025—a 7 % increase over last year—lifting spending power across the city.
Meanwhile, Dubai residents remain high-intent consumers: per capita GDP is among the highest regionally, driving demand in premium categories like designer fashion, high-performance cosmetics, sports equipment, and supplements.
Yet none of this translates into sales without the right license. Choosing between a Free Zone and a Mainland setup isn’t just legal—it’s strategic. It defines where you can sell, who you can reach, and how quickly you can scale.
Retail in Dubai 2025: What's Selling Now?
Dubai’s retail market rewards those who move with precision, understand the trends, and execute quickly. Therefore, before diving into licenses, let’s look at what’s moving off the shelves this year:
Smart Sportswear & Wellness Gear: functional, stylish, and tech-integrated products are dominating the fitness-savvy market.
Cosmetics & Grooming: Japanese and Korean skincare lines, performance-oriented grooming products, and minimal-ingredient clean beauty brands are growing rapidly.
Health Supplements: premium, plant-based, and performance-enhancing supplements are in high demand, especially in Dubai’s health-conscious expat communities.
Men’s Fashion & Accessories: tailored apparel, luxury streetwear, watches, and niche designer labels are all making their mark.
Choosing the Right Setup: Free Zone or Mainland?
Your choice of license for a retail business setup in Dubai should align with your sales strategy, target market, and operational needs. Both Free Zone and Mainland structures allow you to legally establish a retail company in Dubai, but they serve different business models.
Free Zone licenses are ideal for agility and cost-effective entry, perfect for launching an online retail brand, testing a new product concept, or running a B2B retail operation with limited overhead.
Mainland licenses, on the other hand, are built for scale and visibility. They give you full access to Dubai’s top retail destinations — from premium malls and shopping streets to high-traffic tourist areas — allowing your retail store to attract walk-in customers and grow without restrictions.
Feature
Free Zone License
Mainland License
Best For
– Online retail
– Showrooms
– Startups
– Controlled testing phase
– Physical shops
– Mall and street stores
– Walk-in traffic & scaling
Pros
✅ Quick setup (3–5 days)
✅ Cost-effective
✅ 100% foreign ownership
✅ Business support packages
✅ Operate anywhere in Dubai
✅ Access to malls, streets, tourist zones
✅ Sell to anyone: B2C, B2B, government
Cons
❌ No retail presence outside zone
❌ Limited visibility
❌ No foot traffic
❌ Higher startup costs
❌ Requires physical rental space
❌ More compliance steps
Ideal For
E-commerce, niche brands, wholesale distribution, solo entrepreneurs
Established retail brands, franchise owners, ambitious retail expansion strategies
Which License Type Is Right for Your Retail Business?
If your retail business thrives on visibility, customer engagement, and brand presence, the Mainland setup is your go-to. It unlocks prime retail real estate, positions you within Dubai’s high-traffic shopping hubs, and gives you complete access to the local market.
But if you’re entering the market cautiously, prefer low operational overhead, or run a lean, online-first business model — a Free Zone setup lets you launch fast, test the waters, and maintain flexibility.
The real question is not which is better — but which is better for your business goals.
Do you want to dominate foot traffic and scale fast? Go Mainland.
Want to test a premium product line with minimal investment? Go Free Zone.
And if you’re planning both — start in the Free Zone and transition once traction builds.
Whatever your strategy, make your decision before you invest in branding, stock, or location — your license type defines what’s possible.
Ready to Launch? We’ll Make It Seamless.
At My Business Consulting DMCC, we specialise in guiding entrepreneurs through the entire company formation process, without lengthy paperwork. From license application to retail space leasing, bank account setup to visa processing — we do it all. Fast. Compliant. Hassle-free.
Talk to our team today. Let’s turn your vision into a powerful presence in one of the world’s most dynamic retail markets.
