Not too long ago, matcha was something you’d only hear about in Japan. Today, it’s everywhere – popping up in coffee shops, on Instagram feeds, and even in beauty products. People love it not just for the vibrant green look, but also for the health boost and smooth energy it gives.
Dubai’s café scene is booming, and people here are always on the lookout for something new and healthy. From trendy cafés to luxury hotels, the demand for unique and healthy drinks is only going up. This makes it an exciting time for entrepreneurs who want to start a matcha business in Dubai.
If you’re coming from the UK, Dubai gives you a big head start. You don’t have to worry about high taxes, the paperwork is simpler, and the city connects you to markets across the world. It’s the kind of place where a matcha idea can turn into something much bigger.
Why Dubai is the Perfect Market for a Matcha Business?
Here’s why Dubai is the perfect place to start a matcha business:
1. Matcha Is Trending in Dubai
Just a couple of years ago, you could hardly find matcha on café menus. Today, it’s everywhere – iced lattes, smoothies, desserts, you name it. People love the health benefits, and of course, the “Instagram-worthy” green look makes it even more popular.
2. The Market Is Growing Fast
The UAE matcha market is set to grow from about USD 340 million in 2025 to nearly USD 800 million by 2031. That means more customers, more demand, and more room for new businesses to step in.
3. Dubai Loves Wellness
Health and wellness are a huge part of life here. From gyms and yoga studios to healthy cafés and spas, people are willing to spend on products that make them feel good. Matcha fits right into this lifestyle.
4. A Diverse, Open-Minded Audience
Dubai is home to people from all over the world. Expats bring global tastes, and locals enjoy trying new premium products. This makes it easier for matcha to find fans across different cultures.
5. Strong Café Culture
Coffee shops in Dubai are more than just a quick stop, they’re social hubs for work, meetings, and hanging out. Offering unique drinks like matcha gives cafés (and you as a business owner) an edge in this competitive scene.
6. Matcha Is Seen as Premium
In Dubai, matcha isn’t just another drink; it’s often seen as a luxury item. From five-star hotels to fine dining restaurants, matcha-based drinks and desserts are becoming a sign of quality and exclusivity.
What are the Business Opportunities for Matcha in Dubai?
Matcha isn’t just a drink, it’s a business opportunity waiting to be explored in Dubai. Here are some of the most promising ways you can bring matcha to the market:
1. Matcha Café or Tea Bar
Open a specialty café that focuses on matcha-based drinks and desserts. From classic hot lattes to creative matcha smoothies, ice creams, and cakes, this is a big hit among Dubai’s café-loving crowd.
2. Retailing Matcha Products
Sell matcha powder, starter kits, and accessories (like whisks and bowls) in stores or online. With more people wanting to make matcha at home, this is a growing market.
3. Wholesale Supply to Cafés & Restaurants
Many restaurants, coffee shops, and hotels in Dubai want to add matcha to their menus but don’t have direct access to suppliers. Becoming a trusted wholesale provider can be a profitable niche.
4. E-commerce Store
Launch an online store targeting UAE and even wider GCC customers. With Dubai’s strong online shopping culture, e-commerce makes it easy to reach customers directly.
5. Matcha in the Wellness Industry
Beyond drinks, matcha can be used in supplements, protein blends, skincare, and even spa products. Dubai’s booming wellness and beauty scene offers plenty of opportunities here.
6. Collaborations & Pop-Ups
Partner with gyms, yoga studios, spas, and fitness centers to introduce matcha-based drinks or snacks. Short-term pop-ups at malls, events, and festivals can also create buzz and build your brand.
What are the Legal & Licensing Requirements for UK Entrepreneurs?
Starting a matcha business in Dubai as a UK entrepreneur involves a few key legal and licensing steps.
Business Structure:
- Mainland Company: A mainland license allows you to trade anywhere in Dubai and the wider UAE. This is the ideal option if you plan to have a physical shop and sell directly to consumers across the city. Recently, mainland companies have also been allowed 100% foreign ownership for most business activities.
- Free Zone Company: Free Zones, such as the Dubai Multi Commodities Centre (DMCC) or Jebel Ali Free Zone (JAFZA), offer a specific legal framework. They offers100% foreign ownership, tax benefits, and easy business setup options. If you’re planning an e-commerce or a delivery-only business, a free zone can be a cost-effective and efficient choice.
Required Licenses and Permits:
A matcha business falls under the food and beverage (F&B) sector, so you’ll need two main licenses:
- Trade License: This is the primary business license that legalises your business activity. It’s issued by the Department of Economic Development (DED) for mainland companies or the relevant Free Zone authority. For a matcha business, you’d apply for a commercial license, often categorised as a “Cafeteria license” or a “Tea Shop license,” which permits the sale of beverages and light snacks.
- Food and Safety License: This is a separate, crucial permit issued by the Dubai Municipality’s Food Safety Department. It ensures your business meets all local hygiene and safety standards. To get this, you must submit a layout of your premises (e.g., kitchen plan, serving area), and the municipality will conduct an inspection before granting approval.
Required Documentation:
To register your business, you’ll typically need:
- A copy of your passport
- Proof of address
- Passport-sized photos
- Business name reservation letter
- Memorandum of Association (MOA)
- Business plan (for free zone applications)
- Lease Agreement / Ejari
- Import/Export Code (if importing matcha powder or products)
- Food safety approvals (if selling F&B products)
How to Start a Matcha Business in Dubai?
Starting your own matcha business in Dubai may sound a lot of paperwork, but when broken down into steps, it’s much easier to follow. Here’s how UK entrepreneurs can get started:
1. Decide Your Business Model
Will you open a matcha café, sell packaged matcha products, or run an online store? Your model will decide what license and approvals you’ll need.
2. Choose the Right Jurisdiction: Mainland or Free Zone
- Mainland: Better for cafés, retail shops, and serving local customers.
- Free Zone: Ideal for online businesses, wholesale, or export-focused trade.
3. Pick a Business Name
Submit 2-3 name options to the Department of Economic Development (DED) or your chosen Free Zone. Make sure the name is unique and follows UAE naming rules.
4. Lease a Space (if needed)
For cafés or retail shops, you’ll need a physical location with a registered lease (Ejari). For Free Zone companies, a Flexi-desk or office lease may be enough. Food businesses must follow specific layout standards for kitchens, hygiene, and storage.
5. Obtain Your Business Licenses
Once all documents and approvals are ready, you can finally apply for your Trade License. Apply for a commercial license from the DED or Free Zone authority.
Food and Safety License: This is a separate, mandatory license from the Dubai Municipality’s Food Safety Department. You will need to submit a layout plan of your premises, and the department will conduct an inspection to ensure you meet all hygiene and safety standards.
6. Apply for Import/Export Code (if needed)
If you’re importing matcha from Japan or elsewhere, you’ll need a customs code from Dubai Customs. This enables you to clear goods at ports and airports.
7. Process Your Visa and Bank Account
With your trade license, you can apply for an investor or partner visa, which is a mandatory requirement for you to live and legally run your business in Dubai.
Once your visa is processed, you can open a corporate bank account, which is crucial for handling transactions and managing your finances.
Note: If your annual turnover exceeds AED 375,000, VAT registration is mandatory. Even if you’re below the threshold, voluntary registration is possible, which can be useful for claiming VAT refunds on business expenses.
To avoid delays, many UK entrepreneurs partner with experts at Shuraa UK, who handle the paperwork, approvals, and banking process on their behalf.
How Much Does It Cost to Start a Matcha Business in Dubai?
To run your matcha business legally in Dubai, you’ll need a trade license. The cost usually starts from AED 12,000 to AED 18,000, depending on whether you set up in a mainland or free zone. This is the first and most important expense you’ll need to plan for.
If you plan to open a café, store, or even a small office, rent will be a major cost. Prices vary a lot depending on the location. As a business owner, you’ll need a visa, and you may also want to sponsor visas for your staff. Each visa can cost anywhere between AED 3,000 to AED 7,000.
For more accurate cost breakdown, depending on your business needs, consult business setup experts at Shuraa UK.
Why Wait? Dubai is Ready for Your Matcha Brand
Opening a matcha business in Dubai means more than serving a cup of tea, it’s about being part of a lifestyle shift. The city is buzzing with demand for healthier, trendier choices, and for UK entrepreneurs, that comes with big wins like tax savings, a ready market, and global reach.
Getting started might look tricky at first, but that’s where Shuraa UK comes in. From food & beverage licenses and Dubai Municipality approvals to VAT, visas, bank accounts, and even finding the right shop or office, we handle it all for you. Get in touch today and let’s get your started..
