Cost to Open Restaurant Dubai 2026: Full Breakdown & How Much It Costs
25 May 2026
Dubai has always been a city that dares to dream big — and nowhere is that ambition more visible than in its restaurant scene. From Michelin-starred fine dining to hole-in-the-wall shawarma spots, the emirate’s food industry is one of the most vibrant and competitive in the world. But behind every beautifully plated dish and perfectly designed dining room lies a critical question that every aspiring restaurateur must face: What is the real cost to open restaurant Dubai?
The honest answer? It varies — enormously. And that’s precisely why so many entrepreneurs enter the market underprepared, burning through capital before they ever serve their first table. Whether you’re planning an intimate café, a casual dining chain, or a flagship fine-dining concept, understanding the cost to open restaurant Dubai in 2026 is not just helpful — it’s essential for survival.
This guide strips away the guesswork. We’ll walk you through every major cost category, from licensing and location to kitchen equipment and staffing, so you can build a realistic budget and make confident decisions from day one.
Why Dubai Is Still One of the World’s Most Attractive Restaurant Markets
Before we dissect the costs, it’s worth understanding why investors and food entrepreneurs continue to flock to Dubai. The emirate welcomed over 17 million tourists in 2023, a number that continues to grow. With a population of over 3.5 million, a massive expat community from 200+ nationalities, and a culture that celebrates dining out as a lifestyle — Dubai is a dream market for F&B businesses.
Zero personal income tax, world-class infrastructure, and a government actively encouraging SME growth through the Department of Economy and Tourism (DET) make it one of the most business-friendly cities in the world. Add to that the rise of food delivery platforms, ghost kitchens, and cloud restaurants, and you have a market that rewards both innovation and scale.
But this opportunity comes at a price. The cost to open restaurant Dubai is significantly higher than in many other global markets, and knowing exactly what you’re getting into is the first step to building a successful venture.
What Is the Total Cost to Open Restaurant Dubai in 2026?
The cost to open restaurant Dubai typically ranges between AED 200,000 and AED 2,000,000+ depending on the concept, size, location, and quality of finishes. Here’s a quick snapshot:
| Restaurant Type | Estimated Total Budget (AED) |
| Cloud Kitchen / Ghost Kitchen | 200,000 – 400,000 |
| Café / Quick Service | 300,000 – 700,000 |
| Casual Dining Restaurant | 600,000 – 1,200,000 |
| Polished Casual / Bistro | 900,000 – 1,500,000 |
| Fine Dining Restaurant | 1,500,000 – 3,000,000+ |
These figures are estimates. Your actual spend on the cost to open restaurant Dubai will depend on a combination of factors explored in the sections below.
READ MORE : Most Profitable Restaurant Concept Dubai 2026: Top Ideas to Open Right Now
Cost to Open Restaurant Dubai: Licensing & Legal Fees
The first financial hurdle every Dubai restaurateur must clear is government licensing. Operating legally requires securing the right approvals — and this process comes with its own set of costs. The cost to open restaurant Dubai from a licensing perspective typically ranges between AED 15,000 and AED 50,000, depending on your business structure and the emirate’s jurisdiction.
Key Licenses You’ll Need
- Trade License (DED or Free Zone): AED 10,000 – 25,000. Issued by the Department of Economy and Tourism for mainland businesses or the relevant free zone authority.
- Food Safety License (Dubai Municipality): AED 3,000 – 8,000. Mandatory for any food-serving establishment.
- Liquor License (DTCM): AED 20,000 – 80,000 annually. Required only if you plan to serve alcohol. Note: only certain locations are permitted.
- Signage Permit: AED 1,000 – 5,000. Required by the Roads & Transport Authority (RTA) or relevant municipality.
- Health & Safety Approval: Part of the municipality process, but factor in inspection and compliance costs.
Mainland vs Free Zone: Which Is Better?
Setting up on the mainland allows you to operate anywhere in Dubai without restrictions. Free zones (like Dubai Airport Free Zone or Dubai Silicon Oasis) offer 100% foreign ownership and simpler setups but may restrict where your restaurant can physically operate. Most restaurant owners opt for mainland setups through the DED for maximum flexibility.
Cost to Open Restaurant Dubai: Location & Rental Costs
Location is arguably the most important factor — and the most expensive. Rent in Dubai varies wildly based on the area, footfall, and prestige of the location. When calculating the cost to open restaurant Dubai, expect rental costs to account for 15–25% of your total annual revenue.
READ MORE : Cloud Kitchen vs Restaurant UAE 2026: Which Business Model Wins?
Average Restaurant Rent by Area
| Location | Annual Rent (AED/sqft) |
| Downtown Dubai / DIFC / Dubai Mall | 400 – 800+ |
| JBR / Dubai Marina / Palm Jumeirah | 300 – 600 |
| Business Bay / City Walk | 250 – 500 |
| Jumeirah / Umm Suqeim | 200 – 400 |
| Deira / Bur Dubai / Al Quoz | 80 – 200 |
Security Deposit & Key Money
Beyond the annual rent, landlords typically require a security deposit of 5–10% of the annual rent, plus often 2–4 post-dated cheques upfront. In some high-demand locations, key money (a goodwill payment to the previous tenant) can add AED 50,000 – 300,000 to your initial outlay.
Restaurant Fit-Out Cost Dubai: Interior & Construction
After securing your location, the fit-out is usually the largest single expense in the cost to open restaurant Dubai. Restaurant fit-out costs cover everything from structural modifications and flooring to electrical work, plumbing, HVAC, furniture, and interior design.
As a general rule, fit-out costs in Dubai range from AED 600 to AED 3,000+ per square foot, depending on the level of finish:
- Basic / Fast Food Fit-Out: AED 600 – 900 per sqft
- Mid-Range / Casual Dining: AED 900 – 1,500 per sqft
- High-End / Fine Dining: AED 1,500 – 3,000+ per sqft
For a 150 sqm (approx. 1,600 sqft) casual dining restaurant, you’re looking at AED 1.4M – 2.4M for a complete fit-out alone. This is why understanding restaurant fit-out cost Dubai is so critical — it can make or break your budget.
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Cost to Open Restaurant Dubai: Commercial Kitchen Equipment
Your kitchen is the engine of your restaurant. Skimping on equipment costs you more in downtime, repairs, and lost productivity. The cost to open restaurant Dubai for kitchen equipment alone typically ranges from AED 80,000 to AED 500,000+, depending on your concept and menu complexity.
Essential Kitchen Equipment Categories
Cooking Equipment
The heart of any commercial kitchen is its cooking line. Depending on your menu, you’ll need a combination of ranges, fryers, griddles, charbroilers, and specialty cooking appliances. Investing in reliable cooking equipment from day one reduces maintenance costs and ensures consistency.
Shop commercial-grade cooking equipment trusted by Dubai’s top restaurants.
Commercial Ovens
Whether you’re running a bakery, a pizzeria, or a full-service restaurant, the right oven is non-negotiable. Combi ovens, convection ovens, and bakery deck ovens are all popular choices in Dubai’s F&B scene.
Find the right commercial oven for your restaurant concept.
Refrigeration & Cold Storage
Dubai’s extreme heat makes reliable refrigeration absolutely critical. From reach-in refrigerators and undercounter chillers to blast chillers and work-top freezers, your cold chain equipment must be commercial-grade and energy efficient.
Browse our full range of commercial refrigeration solutions for Dubai restaurants.
Food Preparation Equipment
Commercial food processors, slicers, and prep tables save time and labor in any high-volume kitchen. This category is often underestimated in initial budget planning but plays a massive role in kitchen efficiency.
Discover professional food preparation equipment for your kitchen.
Shop Food Preparation Equipment
Dishwashing & Sanitation
Dubai Municipality has strict hygiene regulations. Investing in a proper commercial dishwasher — whether undercounter, hood-type, or conveyor — is both a legal requirement and a staff productivity multiplier.
Find the right commercial dishwasher for your restaurant’s volume.
Equipment Cost Breakdown by Restaurant Type
| Equipment Category | Small Café (AED) | Casual Dining (AED) | Fine Dining (AED) |
| Cooking Equipment | 20,000 – 40,000 | 40,000 – 100,000 | 100,000 – 250,000 |
| Commercial Ovens | 8,000 – 20,000 | 20,000 – 60,000 | 60,000 – 150,000 |
| Refrigeration | 15,000 – 30,000 | 30,000 – 80,000 | 80,000 – 200,000 |
| Food Preparation | 5,000 – 15,000 | 15,000 – 40,000 | 40,000 – 80,000 |
| Dishwashing | 5,000 – 12,000 | 12,000 – 35,000 | 35,000 – 80,000 |
| Kitchenware & Supplies | 5,000 – 15,000 | 15,000 – 40,000 | 40,000 – 100,000 |
[Suggested Image: Modern commercial kitchen setup — ALT: “cost to open restaurant Dubai kitchen equipment”]
Beverage & Coffee Equipment Costs
If your restaurant concept includes a coffee program or a full bar, budget separately for beverage equipment. A quality commercial espresso machine alone can cost AED 10,000 – 50,000, and that’s before considering grinders, coffee accessories, and brewing equipment.
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Complete your bar setup with commercial blenders, juicers, and beverage dispensers.
Cost to Open Restaurant Dubai: Staffing & HR
Labor is one of the biggest ongoing costs when considering the cost to open restaurant Dubai. While Dubai doesn’t have a minimum wage law for the private sector, competitive salaries, visas, accommodation, and benefits add up quickly.
READ MORE : How to Open a Restaurant in Dubai: The Complete 2026 Step-by-Step Guide
Typical Monthly Salaries in Dubai’s F&B Sector (AED)
| Role | Monthly Salary (AED) |
| Executive Chef | 10,000 – 25,000 |
| Sous Chef | 6,000 – 12,000 |
| Line Cook / Kitchen Staff | 2,500 – 5,000 |
| Restaurant Manager | 8,000 – 18,000 |
| Waiter / Service Staff | 2,000 – 4,000 + tips |
| Cashier / Host | 2,500 – 4,500 |
Visa & Accommodation Costs
Each employee requires a UAE residency visa, which costs approximately AED 3,000 – 5,000 per person including medical and Emirates ID. If you’re providing accommodation, budget AED 500 – 1,500 per staff member per month for shared housing allowances.
For a team of 10 staff, initial visa and setup costs can range from AED 30,000 – 60,000, plus monthly payroll of AED 50,000 – 120,000 for a mid-sized casual dining concept.
Cost to Open Restaurant Dubai: Technology & POS Systems
Modern restaurants in Dubai rely heavily on technology. A cloud-based POS system, reservation management software, and delivery platform integrations are no longer optional — they’re expected. Budget AED 5,000 – 25,000 for initial setup and AED 500 – 3,000 per month for ongoing SaaS subscriptions.
- POS System (hardware + software): AED 5,000 – 15,000
- Reservation System (Sevenrooms, OpenTable): AED 500 – 2,000/month
- Online Ordering Integration: AED 2,000 – 8,000 setup
- CCTV & Security Systems: AED 5,000 – 20,000
- WiFi Infrastructure: AED 3,000 – 10,000
Cost to Open Restaurant Dubai: Marketing & Branding
A beautiful restaurant with a weak brand is a recipe for failure. Pre-opening marketing is one of the most overlooked elements of the cost to open restaurant Dubai. Budget at least AED 30,000 – 100,000 for your launch marketing, including brand identity, social media campaigns, influencer partnerships, and photography.
- Logo & Brand Identity: AED 5,000 – 20,000
- Professional Photography & Videography: AED 5,000 – 20,000
- Social Media Setup & Content: AED 3,000 – 10,000/month
- Influencer Marketing (launch): AED 10,000 – 50,000
- Google & Meta Ads: AED 3,000 – 15,000/month
- Menu Design & Printing: AED 2,000 – 8,000
Working Capital & Operating Reserve
One of the most critical and most commonly underestimated parts of the cost to open restaurant Dubai is working capital. Most restaurants operate at a loss for the first 3–6 months as they build their customer base. You must have cash reserves to cover:
- Rent and utilities for 3–6 months: AED 60,000 – 300,000
- Payroll for 3–6 months: AED 150,000 – 700,000
- Food and beverage inventory restocking: AED 20,000 – 80,000/month
- Unexpected repairs and maintenance: AED 20,000 – 50,000
Industry experts recommend reserving at least 20–25% of your total startup budget as a working capital buffer. Restaurants that fail within the first year almost always cite cash flow problems as the primary cause.
Cost to Open Restaurant Dubai: Full Budget Summary
| Expense Category | Casual Dining (AED) | Fine Dining (AED) |
| Licensing & Legal | 15,000 – 40,000 | 30,000 – 80,000 |
| Rent (Annual) | 150,000 – 400,000 | 400,000 – 1,000,000 |
| Fit-Out & Interior | 200,000 – 500,000 | 500,000 – 1,500,000 |
| Kitchen Equipment | 100,000 – 250,000 | 250,000 – 600,000 |
| Technology & POS | 10,000 – 30,000 | 20,000 – 60,000 |
| Staffing (Setup + 3 mo.) | 180,000 – 400,000 | 350,000 – 800,000 |
| Marketing & Branding | 30,000 – 80,000 | 80,000 – 200,000 |
| Working Capital Reserve | 100,000 – 200,000 | 200,000 – 500,000 |
| Total Estimated Cost | 785,000 – 1,900,000 | 1,830,000 – 4,740,000 |
How to Reduce the Cost to Open Restaurant Dubai
The cost to open restaurant Dubai is substantial — but smart entrepreneurs find ways to optimize without compromising quality. Here are proven strategies:
1. Start with a Ghost Kitchen or Cloud Kitchen
Ghost kitchens eliminate the need for a dining room entirely, slashing fit-out and rental costs by 40–60%. They’re ideal for delivery-first concepts and allow you to test your menu with minimal risk.
2. Choose Your Location Strategically
A location in Deira or Al Quoz can cost 60–70% less in rent than DIFC or Dubai Mall, with the right marketing and delivery platform presence compensating for lower walk-in traffic.
3. Buy Quality Used or Refurbished Equipment
Dubai has a vibrant market for second-hand commercial kitchen equipment. However, always inspect carefully and consider warranty implications. For critical items like refrigeration and cooking equipment, new professional-grade equipment from a trusted local supplier protects your operation long-term.
4. Lease Equipment Instead of Buying
Several suppliers in Dubai offer equipment leasing options, preserving cash flow in your critical first months of operation.
5. Partner With a Local Fit-Out Specialist
Working with an experienced Dubai fit-out company who understands Dubai Municipality requirements can save you from costly compliance errors and rework.
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Frequently Asked Questions
How much does it cost to open a restaurant in Dubai?
The cost to open restaurant Dubai ranges from AED 200,000 for a small cloud kitchen to over AED 4,000,000 for a high-end fine dining concept. A typical casual dining restaurant costs between AED 700,000 and AED 1,500,000 to launch.
What licenses do I need to open a restaurant in Dubai?
You need a Trade License from the DED (or relevant free zone), a Food Safety License from Dubai Municipality, and depending on your concept, a liquor license from DTCM. Total licensing costs range from AED 15,000 to AED 80,000+.
How much is restaurant rent in Dubai?
Restaurant rent in Dubai varies from AED 80 per sqft per year in areas like Deira to AED 800+ per sqft in Downtown Dubai or Dubai Mall. Annual rent for a 150–200 sqm restaurant typically ranges from AED 150,000 to AED 700,000+.
What is the fit-out cost for a restaurant in Dubai?
Restaurant fit-out costs in Dubai range from AED 600 to AED 3,000+ per square foot depending on the level of finish. A 150 sqm casual dining restaurant fit-out typically costs between AED 200,000 and AED 500,000.
How much should I budget for restaurant kitchen equipment in Dubai?
Kitchen equipment budgets range from AED 80,000 for a small café to AED 500,000+ for a full-service fine dining kitchen. Cooking equipment, refrigeration, and dishwashing represent the largest equipment costs.
Can a foreigner open a restaurant in Dubai?
Yes. Foreign nationals can own 100% of a restaurant business in Dubai, either through a free zone setup or on the mainland (since the 2021 Commercial Companies Law amendments removed most foreign ownership restrictions).
How long does it take to open a restaurant in Dubai?
From signing a lease to opening day, the process typically takes 3–6 months. Licensing can take 2–6 weeks, while fit-out and equipment installation can take 2–4 months depending on the complexity of the project.
Is it profitable to open a restaurant in Dubai?
Dubai’s restaurant market is competitive but highly profitable for well-positioned concepts. Successful restaurants achieve net profit margins of 10–20%. The key is realistic budgeting, a strong concept, and effective marketing from day one.
What is the monthly running cost of a restaurant in Dubai?
Monthly operating costs for a mid-sized casual dining restaurant in Dubai typically range from AED 80,000 to AED 200,000, covering rent, payroll, food cost, utilities, and marketing.
Do I need a local sponsor to open a restaurant in Dubai?
As of the 2021 law changes, most business activities on the mainland no longer require a local sponsor (UAE national) as a majority shareholder. However, certain regulated activities may still have specific requirements — always consult a business setup advisor.
Conclusion: Plan Smart, Budget Right, Build to Last
Opening a restaurant in Dubai is one of the most exciting — and one of the most demanding — entrepreneurial journeys you can undertake. The opportunities are real, the market is hungry, and the rewards for those who execute well are substantial. But none of that matters if you run out of money before you find your footing.
The cost to open restaurant Dubai in 2026 demands meticulous planning. From your first AED spent on licensing to the last dirham of your working capital reserve, every financial decision shapes your path to profitability. Invest in the right location, build a kitchen that performs, hire people who believe in your vision, and market your concept with intention — and Dubai will reward you.
We hope this guide has given you a clearer picture of the cost to open restaurant Dubai and what it takes to build something great. If you found it valuable, share it with a fellow entrepreneur, leave a comment with your questions, and explore more of our guides to help you navigate the Dubai F&B landscape with confidence.
Ready to equip your Dubai restaurant kitchen? Explore Al Razana’s full range of commercial kitchen solutions — from cooking equipment and refrigeration to dishwashers and stainless steel fabrication.
