It is no secret that Dubai is a trendsetter across many sectors. Once a very selective, niche market, vaping now counts among Dubai’s booming markets. While Dubai, with its premium infrastructure, tax benefits, and business-friendly landscape, is a top location for a vape business, it is easy to get overwhelmed by all the regulations you have to adhere to. This guide will show you how to start a vape business in Dubai through a series of easy-to-follow steps and sound advice.
Is it legal to sell vapes in Dubai?
It is legal to sell vapes in Dubai, as long as you comply with the UAE’s strict regulatory requirements. A business can only sell vapes, e-liquid and related products if they adhere to the required quality, safety, and tax regulations. All products have to undergo rigid compliance assessments and be certified according to the standards originally determined by ESAM (now operating under the Ministry of Industry and Advanced Technology – MoIAT). They also need to meet UAE.S 5030, a national standard that controls the limits of nicotine, packaging, contents, and labeling of related products in the UAE. In order to legally operate a vape business in Dubai, businesses also have to be in possession of the right licenses and register with the applicable authorities, such as the Dubai Municipality.
How to start a vape business in Dubai
A lot of research and planning is required when starting a vape business in Dubai. Here are the steps you need to follow to ensure that you fulfill all regulatory approvals and abide by UAE vape laws.
Step 1: Select the right jurisdiction
Choosing whether to set up on the mainland or in one of Dubai’s free zones is one of the most important decisions you will make while setting up your vape business. There are benefits to choosing both mainland and free zones. Weigh up your options carefully and choose the one that aligns with your business activity and long-term goals the best.
Step 2: Pick a Business Structure
This is another important decision to make and one that requires thorough research and forethought. If you are starting a business on the mainland, a Limited Liability Company (LLC) may be a good choice. Other popular options include sole proprietorships and branch offices.
Step 3: Define your business activities
When applying for your business license, you need to clearly list all your business activities. Choose the activity most closely related to your business from the activity list of the DED or the applicable free zone authority. If you choose the incorrect activity you may face severe penalties under electronic cigarette laws in the UAE.
Step 4: Choose a name for your business
This is often one of the most exciting business setup steps. Choose your name carefully and make sure it complies with all naming regulations. Your trade name should be one-of-a-kind, relevant to the nature of your business, and free of any religious or offensive words and phrases. Once you have decided on a name, you must register it with the DET or equivalent free zone authority.
Step 5: Find a compatible location
When starting a vape business in Dubai, you need to find a suitable location for it. It is vital that it meets zoning requirements and passes an inspection by the Dubai Municipality. Also look for a location that will benefit your business by offering optimal visibility and foot traffic.
Step 6: Get the necessary approvals
You will have to get approvals in place from various authorities, depending where you set up your vape business.
This may include:
• Dubai Municipality location compliance
• Dubai Civil Defense fire & safety checks
• Dubai Health Authority health regulations
• Dubai Chamber of Commerce membership certificate
• Product safety certification issued by the MoIAT (formerly ESMA)
You will also have to comply with all the vape retail requirements regarding product labeling and e-liquid ingredient restrictions.
Step 7: Compile and submit documents
You can’t be granted a trade license for your vape business unless you submit all the required documents. While it may feel like a tedious chore, it is important to fill in all application forms with care and submit them within the required timeframe. The DET will handle all license applications on the mainland while free zones have their own authorities that deal with license approvals. You can only start operating legally in Dubai once you have received your trade license.
Step 8: Open a bank account for your business
As a business you will be required to make and receive regular payments in a secure manner. For this, you will have to open a bank account with one of Dubai’s trusted service providers. Make a list of your banking requirements and choose a provider that can meet both your short and long-term needs.
Step 9: Finalize your setup and launch your business
When you are issued your trade license you can start planning the official launch of your business. In addition to preparing your premises, you also need to make sure your employees are properly trained. Remember to implement a good marketing strategy ahead of time to help ensure as much brand awareness as possible before your launch.
Documents needed to open a vape business in Dubai
Here is a detailed list of the documents you need to open your vape business in Dubai:
Passport copy
Copies of the valid passports of all owners and shareholders are required.
Business plan (for manufacturing or importing)
A detailed business plan is one of the building blocks of a successful business. It has to outline all aspects of your proposed business including your planned activities, short and long-term goals, and marketing strategy.
Product composition details
Detailed, accurate information about all the ingredients and nicotine levels of each type of e-liquid.
Lab test reports
An ISO 17025-accredited laboratory report that indicates e-liquid composition, heavy metals, and device safety.
ECAS/ESMA registration
Certificates issued by MoIAT (formerly ESMA), including ECAS registration and declarations of conformity with UAE standards.
Warehouse/store lease agreement
A valid lease agreement (Ejari) for your business premises, whether warehouse or retail store.
Benefits of starting a vape business in the UAE
Here are some of the benefits of starting your own vape business in Dubai:
Rapidly-expanding market – The UAE’s vape market is growing at a rapid rate as more consumers prioritize convenience amidst a fast-paced lifestyle. In turn, entrepreneurs are presented with many opportunities for profitability.
Superior infrastructure – Dubai sports world-class infrastructure that helps ensure streamlined business operations. Modern ports, airports, and logistics facilities reduce bottlenecks and make it easier to import, store, and distribute vape-related products.
Clear regulations – Strict regulations govern the vape industry in Dubai. While this might initially seem like a disadvantage, it plays a very important role in boosting confidence among consumers as it means products are of a high quality and safe to use.
Full foreign ownership – If you choose to establish your business in one of Dubai’s free zones, you can enjoy 100% ownership while also repatriating all of your profits.
GCC/MENA distribution – When you set up your vape business in the UAE, you will enjoy strategic access to the Gulf Cooperation Council (GCC) and the Middle East and North Africa (MENA) region to distribute your vape products.
Mainland vs free zone: Which is better for vape startups?
Of all the decisions you have to make when setting up your vape business in Dubai, choosing the right jurisdiction is definitely one of the most important.
Free zones
If you settle on one of Dubai’s free zones, you will enjoy benefits such as swift company setup, straightforward regulations, and easy exports to international clients.
Mainland
Mainland businesses can sell directly to clients across the UAE and also apply for government contracts.
Frequently asked questions
Can I sell vapes online in Dubai?
Yes, you can sell vapes online in Dubai. You have to, however, make sure you adhere to the MoIAT’s and Dubai Municipality’s regulations and make sure your website has strict age verification processes in place to ensure you are not selling your products to minors.
What licenses do I need to import vape products?
In order to legally sell vape products in Dubai you need to be in possession of an ‘E-Cigarette and Accessories Trading License’ from the DET or regulatory free zone authority. Other licenses and approvals may be required.
Do I need ESMA approval for each new product?
Yes, every vape product you sell has to undergo MoIAT registration and certification to ensure that it meets the safety and quality standards of the UAE.
How long does vape product registration take?
It can take anywhere from a few weeks to a few months from start to finish. The exact timeline is determined by the time taken to submit all required documentation and receive MoIAT product certification.
Can I operate a vape business from a free zone?
Yes, you can operate a vape business from a free zone in Dubai as long as you have the necessary licenses and approvals in place from the relevant free zone authorities.
About Set Hub
While Dubai is a top location to open a vape business in, the sector is heavily regulated. With the dedicated Set Hub team by your side, you will be able to navigate the entire setup process with ease. We have served more than 25,000 clients over the last ten years, offering a personalized service to each. Our 96% client satisfaction rate speaks for itself, illustrating our commitment to providing you with the best service imaginable. Reach out to us today for assistance with your business setup in Dubai.