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Let's know About Trading in Food Stuff and Beverages

By Shivangi - 03 Mar 2022 Last Updated: 06 Apr 2022
Let's know About Trading in Food Stuff and Beverages

Food Stuff Trading is an important business sector in the UAE and a significant contributor to the UAE economy. Despite the pandemic, the Food Stuff Trading business appeared to be active due to consistent demand from a large population, including customers and commercial centers. The United Arab Emirates (UAE) is a global trade hub and economic center in the Middle East, facilitating large quantities of imports and exports to various countries. In this blog, we are going to discuss regarding Trading in Food Stuff & Beverages.

Dubai: Major Trading Hub for Food Products

Dubai is a popular destination for international cuisines and food varieties from over 200 countries. It is home to a diverse range of hotels, restaurants, and cafes that cater to the region's multi-national population.

These commercial establishments have a high demand for high-quality food supplies to prepare dishes and serve customers.

In addition, there is a large population of expatriates working in the region and their families who rely on foodstuffs from various brands to meet their daily meal requirements, which adds to demand.

Food Trading Licenses in Dubai

Food Stuff Trading License is a popular type of business license in Dubai's Free Zones, on the Mainland, and throughout the UAE.

Various Free Zones provide Food Stuff Trading Licenses to global investors for a low fee. The entrepreneur can select the appropriate business license category based on the nature of the business activity – Commercial or Trading License.

License to Manufacture Food in Dubai is Mandatory

Investors interested in Food Stuff Manufacturing and Trading should obtain two business licenses, one for manufacturing and the other for trading the manufactured goods.

Because business activities, permission requirements, office space, and warehouse requirements all differ significantly, keeping both entities separate works better.

A variety of business activities fall under the broad umbrella of Food Stuff Trading. The following are the sub-activities covered by the UAE trading license.

Sub-activities under Food Stuff Trading

  • Mineral Water Trading
  • Juice Trading
  • Vegetable & Fruit Trading
  • Ice Trading
  • Sugar Trading
  • Cereals, Grains Trading
  • Vegetable Oil and Ghee Trading
  • Snack Food Trading
  • Flour Trading
  • Egg Trading
  • Carbonated Water and Soft Drinks
  • And many more…

Additional Trading and Manufacturing of Food Products

  • Food and Beverages Trading
  • Food Supplements Manufacturing
  • Cereal Food Manufacturing
  • Natural (Organic) Food Manufacturing
  • Baby food Manufacturing

Advantages of Obtaining a Food Trading License in the UAE

The following are the business advantages of establishing a Foodstuff Trading Business in the UAE. Food trading companies in the UAE will see a steady flow of demand.

Global Occurrences

Dubai is a global hub for world-class events, exhibitions, and meetings. With all safety protocols in place, the UAE holds real-time events at various locations throughout the city with attendees.

As a result, the significance of Food Stuff Trading in the region's economic growth cannot be overstated.

The upcoming Gulf Food Exhibition and Expo 2020 are expected to be major industry events in the UAE, significantly increasing demand for Food Stuff Trading.

The UAE has a large market for essential foodstuffs and agricultural produce due to its growing population and numerous export business opportunities.

Staff with Expertise

In the UAE, there is a diverse labor market with low-cost opportunities. Manufacturing and trading of food products is a labor-intensive industry, and the UAE is an ideal location for establishing a food trading business.

The UAE has the infrastructure needed for large-scale manufacturing, storage, and transportation of specialized food necessities and agricultural produce.

A large number of warehouses and manufacturing centres in the UAE can be used to increase production volumes in order to meet the world's increasing demand for food supplies.

Easy Setup

Setting up a business in the UAE is a relatively simple process that requires little documentation and clearance.

The mainland business setup in the food trading sector requires special approval from the Dubai Municipality's Food and Safety Department.

 Increasing in Demand

Food Stuff Trading is a profitable business sector in the UAE. Reaching out to new customers has become easier thanks to digital applications.

As more consumers order online from supermarkets, hotels, cafeterias, and other establishments, the home delivery model is increasing demand for essential food items.

Trading of Food in Dubai Mainland

The Dubai Economy issues the Food Stuff Trading License in Dubai Mainland after receiving approval from the Dubai Municipality.

Business activities such as bakeries, cafes, restaurants, hotels, canteens, food trucks, food kiosks, and so on, as well as the manufacturing of food and beverages, require a special permit and approval from the Dubai Municipality.

Procedures for Establishing a Food Trading Business on the Mainland

These are the following procedures:

  • Get a tradename reservation (3 tradenames for authorities to choose from) and apply to Dubai Economy for a Food Stuff Trading License.
  • Prepare the LLC Company Structure's Memorandum of Association, shareholding certificate, and Local Sponsor Agreement.
  • Choose the appropriate office space/Warehouse Location / Office +Warehouse based on the business needs, and complete the Ejari and tenancy contract.
  • Submit a copy of the investor's passport, a photograph, and a copy of his or her visa (if applicable) to Dubai Economy.
  • Submit the Ejari and Tenancy Contract to the Dubai Municipality to obtain preapprovals.
  • Clearances are obtained, after all. submit the required documents to Dubai Economy, along with the Food Stuff Trading License Fee
  • Obtain a Food Stuff Trading License and then open a Corporate Bank Account and other business support services.

In a nutshell, a Food Stuff Trading License in Dubai allows investors to distribute food and beverages in the UAE as well as export them to other countries.

Conclusion

The large quantity manufacturing and selling of Food Stuffs to meet the region's rising demand for essential food items is the major driving force for the Food Sector to show consistent signs of growth.

Connect with Dhanguard Consultants right away to learn more about the steps and procedures for starting a Food Stuff Trading business in the UAE!

Dhanguard provides the business setup and company formation services in Dubai, UAE with the guidance of our professional team of consultants. Faster and hassle-free company setup in Mainland and Freezone in UAE.

Dhanguard provides faster and hassle-free Trade License with minimum paper work. With the guidance of our professional team of consultants you will get General trading license, Freelance license, Etrader license, Event Management License, Travel Agency license in Mainland and Freezone in UAE.

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