Dubai, with its vivacious nightlife, tourism-centric economy, and robust dining culture, continues to be a prime destination for shisha cafés. They’re excellent businesses for all types of entrepreneurs who want easy scalability and high profit. But you obviously have to have your shisha business established right from the get-go. If you want to legally serve shisha in Dubai, you need to obtain the required license and approvals. In this guide, we will provide key information on things like costs, compliance, benefits of a shisha café, and what to do to open one in Dubai in 2026.
What is a shisha license in Dubai?
A shisha license in Dubai is the official authorization required to legally serve shisha. It is regulated by a few bodies such as the Dubai Municipality, Civil Defense, and Dubai Police to ensure compliance with safety, zoning, and health regulations among others. You need to remember that you require a regular restaurant (or café) trade license in addition to your shisha one. Serving shisha without the correct approvals in place can lead to hefty fines, suspension, and the extended closure of your business.
Benefits of starting a shisha café in Dubai
There are many benefits to starting a shisha cafe in Dubai. Let’s examine five of them:
Consistent demand
Shisha is a trending social and cultural activity among both Dubai residents and tourists. This results in a solid demand throughout the year.
High profitability
If you are looking for products with big profit margins, shisha should definitely be on your radar. The potential for high markups is amplified when shisha is combined with food and drink sales.
Client base propelled by tourism
Dubai remains one of the most popular tourist destinations in the world. This ensures that there is always a constant stream of foot traffic, especially in the various entertainment districts and lifestyle zones across the city.
A flexible business model
A shisha business can take on many forms. Apart from being offered in hotels, restaurants, and lounges, a shisha service can also be provided by an outdoor venue. This makes it possible for business owners to make use of varied branding and pricing strategies.
Premium positioning possibilities
Shisha has a reputation of being a luxury experience. This results in a high average spend per client.
Types of shisha businesses in Dubai
In Dubai, many types of shisha business formats have been approved, based on the location and setup. They include independent shisha cafés, restaurant-based shisha services, hotel lounges, and outdoor shisha spaces. Zoning, seating density, ventilation systems, and distance from residential areas differ from business type to business type. Selecting the correct activity during licensing is essential to avoid a lot of application delays or rejections.
Guidelines to obtain a shisha permit in Dubai
Dubai authorities issue a shisha permit only when strict health, safety, and zoning regulations are met. Public health and responsible operations are protected under these regulations.
The premises must be in a commercial building located on a main road and approved specifically for shisha use. Distance regulations are in place and minimum separation must be maintained from residential buildings, schools, nurseries, and mosques. In most cases, a separate entrance is required.
A professionally designed ventilation system is mandatory and must be approved by the Dubai Municipality. Fire safety measures, waste disposal arrangements, and food safety compliance are also reviewed before a permit is granted.
Shisha license application process: Step-by-step
There are a number of steps that have to be followed when applying for a shisha licence in Dubai.
Step 1: Choose your business activity
The first thing you need to do is decide if your shisha business is going to be a standalone café, a restaurant offering a shisha service, or an outdoor lounge. This decision will directly impact the approvals and licenses you’ll need later in the registration process.
Step 2: Find location and have tenancy contract
The premises you select for your shisha business must be in an approved zone and comply with all municipality distance requirements. You will also need a signed tenancy agreement and Ejari registration (depending on where you are establishing your business), before continuing with the registration process.
Step 3: Seek initial government approvals
Next, you need to compile all the required documents and apply for initial approvals from the appropriate authorities. This generally includes approval from the DET, Dubai Municipality, and the Food Control Department when food and beverages are to be served.
Step 4: Make sure you are compliant
Once all initial approvals are granted you need to install the necessary ventilation, smoke extraction, fire safety, and hygiene systems. For shisha cafés the technical features of these systems have to meet strict technical standards – especially for indoor shisha venues.
Step 5: Apply for the shisha permit
Once you have finalized the layout of your premises, you must apply for your official shisha license. You will be required to submit a series of documents and might have to apply for additional permits and approvals.
Step 6: Get final approval
The authorities will conduct on-site inspections checking to see if health, safety, and zoning regulations are in place. When the inspection is approved, you receive a shisha license for your business to operate legally in Dubai.
Step 7: Open your bank account
With your shisha license in place, you can now apply for a corporate bank account that will allow you to make and receive payments. You will then be ready to open your doors and start serving the public.
Required documents for a shisha license in Dubai
You will need to submit a variety of important documents when applying for a shisha license in Dubai. This will include a copy of your trade license to prove the business has been legally registered, along with a valid tenancy agreement or Ejari to prove lawful use of the premises. Additionally, you will have to submit approved floor plans that would allow the authorities to clearly see that the proper seating, ventilation, and safety measures are in place. You will also have to get and submit approvals for the ventilation system so that you are in compliance with Dubai Municipality health criteria. NOCs may be requested from the building owner or other authorities, depending on the location of your shisha business. Identification documents are also required for the business owner and all shareholders to ensure accountability and to ensure regulatory compliance.
Shisha license cost in Dubai (2026 update)
The cost of a shisha license in Dubai in 2026 typically ranges from AED 15,000 to AED 30,000 per year. The exact amount depends on location, venue size, and business model.
Additional expenses may include trade license fees, inspection charges, ventilation installation, fit-out costs, and professional consultancy services. Proper budgeting helps prevent delays and unexpected costs.
Frequently asked questions
Can expats open a shisha café in Dubai?
Yes, expats can open a shisha café in Dubai with 100% ownership under current UAE business laws, subject to licensing approvals.
Is shisha allowed in outdoor cafés in Dubai?
Shisha is allowed in approved outdoor cafés that meet distance, ventilation, and municipality guidelines.
How long does it take to get a shisha license?
It can take anywhere from four to eight weeks to get a license. It depends on approvals and inspections.
What’s the minimum investment for a shisha business?
You can expect to pay in the region of AED 250,000 for a full shisha business setup in Dubai. Licensing alone can cost anywhere from AED 15,000 to AED 30,000.
Do I need special ventilation for indoor shisha cafés?
Special, municipality-approved ventilation systems are mandatory for indoor shisha cafés.
Why work with Set Hub to get your Shisha license
Dubai is a top location to start a shisha business in 2026. Getting all the approvals in place and remaining compliant may, however, be somewhat overwhelming – especially for first-time business owners. Luckily, you don’t have to take care of the business setup process on your own. With more than ten years’ experience, the Set Hub team is equipped to help make the entire process as simple and stress-free as possible.
With proven expertise in business setup in Dubai, Set Hub reduces delays and ensures a smooth licensing journey. Book a free consultation today to start your shisha business with confidence.