What’s an under-the-radar business to get started in Dubai? The candle business. The UAE’s candle market is heating up with projected growth of 6.2% year-on-year from 2025 to 2031, according to a recent report released by 6Wresearch. Incredibly, Grand View Research recently reported that the luxury candle segment is forecast to increase by 13% annually from 2025 to 2030. No wonder entrepreneurs are taking notice.
Maybe you’re crafting candles at home. Or perhaps you’ve sniffed out your next big business idea, this blog explores exactly how to start a candle business in Dubai. Not only will we guide you through the business setup process in Dubai, but we’ll also provide insights into the Dubai candle market, including strategies for creating and branding your candles effectively, as well as selling them locally and internationally. And learn how Set Hub’s team can take care of all the paperwork so you can focus on your candles.
How to start a candle business in Dubai
The steps to start a candle business in Dubai are research, choosing a business structure, registering your business and applying for a trade license, opening a corporate bank account, and marketing your products.
Step 1: Start with research
The candle market – and, specifically, the luxury candle sector – is flourishing for both buyers and sellers alike. If you want to stand out in a busy marketplace, your candles need to do more than smell good. Research the playing field, the players, and identify the gaps in the market to position your business, pricing, trends, and products. This will also help you to flesh out your business plan and set you up for a successful application process and business launch.
Step 2: Choose a business structure
You can choose between a mainland or free zone structure for your candle business setup in Dubai. Both of these boast benefits like tax incentives and 100% foreign ownership, but differ in the setup process and market access options. A mainland structure enables you to sell your candle business products directly to the local market, while a free zone setup allows you to trade within your free zone and internationally, and requires a distributor if you’re looking to also trade on the mainland.
Teaming up with Set Hub means we’ll guide you through this crucial step, based on your goals and what you want to spend to set up your candle business in the right way from the start. Contact our specialists today to save you time and headaches.
Step 3: Register your business and apply for a trade license
Every business in Dubai is required by law to hold a valid trade license. Candle businesses in Dubai are no exception and need a commercial license. If you’re looking to also sell your candles online through your own website and social media platforms, you’ll also require an e-commerce license.
As part of this step, you must register a company name, apply for initial approval from your chosen free zone authority or the Department of Economic Development (for mainland business setups). You’ll need to send in a few essentials like your business plan, passport and visa copies, and office rental agreements (if applicable).
Step 4: Open a corporate bank account
After your trade licenses have been issued, you can open a corporate bank account to handle the money side of things. We’ll introduce you to the Dubai banks best suited for a candle business, and help you through this process too.
Step 5: Market your products
Now that your candle business in Dubai is set up legally, you can begin marketing your company and its candles.
Understanding Dubai’s candle market
The Dubai candle market is driven by customer preferences, current trends in home décor, eco-friendly and wellness-conscious buyers, and a robust gifting culture.
Thanks to its growing affluent population with disposable incomes, the Dubai candle market is blossoming for luxury home décor and lifestyle products. In this sense (or, should that be scents?), candles are not just functional items but are style accessories to craft the perfect vibe or aesthetic.
Scented candles infused with essential oils are extremely popular among aromatherapy and wellness-conscious consumers. Dip your wick into niches such as eco-friendly and handmade candle products made from soy-based, beeswax, and sustainably sourced candles.
With an entrenched gifting culture in Dubai. Hotels love them, so do wedding planners and corporate gifting companies. Candles tick a lot of gifting boxes in Dubai: think of festive presents for Ramadan and Eid. This offers opportunities for custom-branded candles for businesses, hotels, and spas, as well as custom candles for weddings and events.
Creating and branding your candles in Dubai
For your candle business in Dubai, you can either make your own candles or source them from suppliers and wholesalers. No matter the business model, you can build your own unique brand identity and product line.
Making your own candles
If you’re a crafter and DIYer, this provides the greatest creative control over design, scent, and ingredients of your products. This approach is perfect for smaller batches, custom orders, and setting your brand apart from competitors in the Dubai candle market. It also appeals to customers seeking artisan, handmade, or sustainably sourced candles. From a startup point of view, this requires a lower initial investment.
Sourcing your candles from suppliers
Sourcing from suppliers or wholesalers enables a faster time-to-market and allows for larger product volumes, if you want to go big or sell in bulk. This approach is best suited for entrepreneurs who focus on branding and distribution rather than manufacturing.
Building your unique brand and product line
To build your unique brand and product line, think about what your business stands for. Do you want to dive deep into eco-conscious products, luxury, or wellness? Or craft a brand for mass retailers, or corporate and hospitality gifting?
Once you know who you’re selling to, build your product line to match their tastes. For instance, this can be through scents, sizes, and packaging.
Make your candles look as good as they smell. In Dubai, high-quality, visually appealing packaging is key. It also needs to tie in with your brand, such as if it’s eco-friendly with refillable packaging, or has premium materials to attract luxury buyers.
How to sell your candles in Dubai
Now, to sell your candles in Dubai, you can use these tried-and-trusted strategies for both offline and online markets.
Offline sales strategy
You can sell directly at weekend markets, such as Ripe Market and Arte Market, or seasonal festivals (like Dubai Food Festival and Ramadan) around Dubai. It’s the perfect place to watch people interact with your candles and see which scents make them stop and smile.
Online sales strategy
Hop onto e-commerce platforms like The Safron Souk, DubaiStore, Amazon.ae, and Noon.com. You’ll need to ensure your product photos, descriptions, and branding are distinctive to stick out in such crowded marketplaces, but this is the fastest way to get your candles into more hands in Dubai.
Why work with Set Hub
Set Hub has been successfully guiding clients to launch businesses in Dubai (and the UAE) for over a decade. Our 80-strong team speaks more than 23 languages and can help anyone from anywhere in the world set up a candle business in Dubai with confidence.
No two businesses are alike: our specialty is in our flexible approach and tailoring our solutions to your individual business needs. Ready to start your business today? Contact Set Hub today to light the way for you.
