Five things to consider before starting a hotel business in Dubai

Are you planning to start a business in Dubai in the near future? Then, we would say this is one of your best decisions ever in life. Yes, Dubai is a world hub that welcomes any kind of business with its state-of-the-art infrastructure, various ex-pat individuals, apt location, and so on. Dubai is famous for its travel and tourist spots and the hospitality industry has an important role to play through the unparalleled creativity and innovative experiences it imparts to the customers. Dubai provides a plethora of opportunities to both nationals of Dubai and also foreign investors.

If you are looking to start a hotel business in Dubai, then this article is for you. Let’s move on to the five most important things to consider before starting a hotel business in Dubai.

Procedure to Open a Hotel Business in Dubai

So, you have decided to start a hotel business in Dubai? Isn’t it? You must know that it is important to get a tourism license. Other businesses require a trade license too. The procedure for a business setup in Dubai is similar in every business. The first thing is to choose a good location,-mainland or free zone. Once the location is set, other procedures are more or less the same. Let’s now understand how to register your business in Dubai.

  • Select a location

Location is quite important when you start a business. Especially when it comes to starting a hotel business, the location has a very important role in drawing more customers to you. Before choosing a location, research the surroundings and the businesses around your desired location. You can choose Dubai mainland or free zone for your hotel business setup in Dubai. It is advisable to touch in with some business consultants in Dubai to help you in the location selection.

  • Appoint a manager for your business

It is important to choose a qualified and experienced manager who can manage your business well when offered a position. If he is well and good, he will understand the complete requirements for your hotel and directs to initial approval and license obtaining processes easily.

  • Initial approval

Initial approval is mandatory for all the Low-Cost business setups in Dubai. This approval must be obtained from the Department of Economic Department (DED). The documents required for the initial approval process are:

  • Duly filled application form from the Department of Economic Department (DED)
  • Plot map, Blueprint, location, and building completion certificate for the hotel property
  • ID and Passport copies of the applicants
  • Managers passport copy
  • Educational qualification of Manager with experience letter (if any)
  • Certificate of Good Conduct approval from DTCM
  • Classification card for the hotel business
  • Approval from Dubai general police headquarters

After submitting the documents along with the application form, DED will go through it and make a decision within 7 business days. Approaching a business consultant in Dubai will help you to submit all these documents without fail for the initial approval processes which is considered to be the important step in the hotel business setup in Dubai. 

  • Receive the License

If you wish to start a hotel business in Dubai, a tourism license is mandatory. In order to get the license, you must submit the required documents as follows:

  • Initial approval fee receipt
  • NOC (if international group or brand of the hotel)
  • Trade name certificate and related payment receipts
  • Initial approval documents and pertinent certification
  • Ejari Certification for the hotel property
  • Consent from Dubai Municipality and related judicial bodies for waste management,  sanitation, public health etc
  • At least 3 months of tenancy approval contract by the landlord

Following the successful submission of these documents, DTCM will check every document and if everyone is fine, the tourism license will be issued within 14 business days. 

  • Print the Tourism License for your hotel business

If your documents are approved, you can easily print the license through the DTCM website e-services or you can directly collect the license from the counter. You can also approach business setup consultants in Dubai who do all these procedures for you. This is the method that is preferred by many entrepreneurs for hassle-free procedures for setting up your business.

Wrapping up

Plan right if you really wish to start a hotel business in Dubai because if you fail to do any step, you might end up facing troubles. If you are unsure about the procedures, hire a business consultant who can do all the procedures correctly for you till you get a business license for your hotel in Dubai. You can also approach them for any concerns regarding your business afterward based on their services.

Still, confused about where to start? Centric solutions are here to help you. Feel free to contact us and we will help you plan better to establish a hotel business in Dubai.


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