Dubai is known around the world for its beauty. And that extends far beyond its stunning shorelines and incredible architecture. Dubai’s diverse residents are just as committed to looking good, with its personal care market estimated to be worth over USD 1bn.
Needless to say, such a vast market presents enormous opportunities for those within it. Salon businesses, in particular, are incredibly popular throughout the city. Such businesses offer a wide range of treatments and can command a high price for premium services.
So, if you’ve got what it takes to make your mark in this large and growing market, here’s the key factors to consider when starting a beauty salon business in Dubai.
How to start a beauty salon business in Dubai: step-by-step
Here are the steps to start a beauty salon business in Dubai. When you work with the expert team at Creative Zone, you can be licensed and trading within weeks.
Step 1: Outline your activities
The first step when starting a business anywhere in the UAE is to outline your intended activities. Failure to do so can cause issues further down the line and carrying out unlicensed activities may lead to fines or even license revocation.
There are many options to choose from, including hair care and styling, skin care, henna and temporary tattoos, and shaving and beard grooming.
Your stated activities must be chosen from the official list published by Dubai’s Department of Economic Development (DED). The team at Creative Zone will help ensure that you have the correct approvals to run your business.
Step 2: Choose your company name
The second step is equally important: choosing a company name. There are a few key things to keep in mind at this stage – many that would not apply anywhere else in the world. Be aware that you must abide by a strict set of naming conventions. In short, you should avoid any offensive or blasphemous language. Avoid names of well-known organisations and avoid abbreviations if naming your company after yourself – i.e. Dave Mann Consulting, rather than D Mann Consulting. You must also check that your chosen name is available to register.
Step 3: Make your license application
You will require a trade license to start a beauty salon business in Dubai. This is issued by the Dubai Department of Economic Development and you can make your application online. Once again, the Creative Zone team will guide you through this process. Get in touch to find out more.
Step 4: Process your visa applications
Finally, you’ll need to organise your visas. With the right guidance, the visa application process can be incredibly straightforward. As well as making your application, you’ll be required to submit biometric information and undergo a medical fitness test.
As the holder of a UAE business license, you can also sponsor others for their visas too. This could be a spouse, parent or child, or a domestic worker such as a housekeeper. The maximum number of visas you can apply for will depend on the size of your company, your chosen setup and, for dependant visas, your personal earnings.
Is running a salon in Dubai profitable?
Yes, running a salon business in Dubai can be incredibly profitable. Dubai’s largely affluent international residents are more than prepared to pay for excellent service. Spot gaps in the market and the latest beauty trends to stand out from the competition and you could quickly build a base of loyal and valuable customers.
Costs and financial planning for your salon
There are numerous costs involved when starting a salon business in Dubai. For starters, you will need to consider licensing, registration and notary fees. On top of this there is the cost of leasing a salon space, plus the purchase and fit out of equipment.
You will also likely required approvals from the Dubai Municipality plus health and safety permits. Beyond this, you should consider staff salaries, stock inventory, insurances and your required budget for marketing and promotion.
Key requirements and qualifications to open a salon
There are many key requirements and consideration when opening a salon in Dubai, ranging from relevant qualifications to regulations and equipment.
Skills and experience needed
The most important thing you need when opening a salon business is a working knowledge of the industry. It’s vital that you understand the types of services in demand and the skills required to deliver them. On top of this, you’ll need to understand the business side of salon ownership. This covers everything from pricing and inventory to staff management.
It’s also important that you understand and adhere to all relevant industry regulations. You or your staff may require official qualifications to perform certain beauty treatments in the UAE. Other optional accreditations can also add authority and credibility to your business.
Team building and staff training
A business is only as strong as its team, and that’s no different in the world of beauty. Once you have decided on the services you intend to offer, it’s vital that you build a team with the capability to deliver to an exceptional standard.
As well as hiring stylists, technicians and all manner of beauticians, you will also need to consider reception staff, management, accounting and much more. Beauty treatments often evolve over time, so be sure to train staff regularly to ensure they are up to speed with the latest techniques and technology.
Choosing suppliers and equipment
The quality of your equipment will have an enormous bearing on the type and level of service you can provide. Be sure to purchase equipment from the UAE-approved list of professional-grade suppliers and products.
Along with the basics such as salon chairs, mirrors and basins, you should also consider any areas of speciality. If you are planning to offer a one of a kind or particularly luxurious treatment, it’s vital that you deliver it with the highest quality equipment.
Consider the latest technology in other areas too, such as POS and booking systems. Anything that can differentiate your business or improve the staff and customer experience will give you a greater chance of success.
Benefits of opening a beauty salon in Dubai
There are many benefits to opening a beauty salon in Dubai, including:
Access to a diverse client base
Dubai’s multicultural population includes residents from Europe, Asia, Africa and across the Middle East. This diverse population creates demand for variety of beauty services and presents the opportunity to find niches and fill unserved gaps.
High demand from residents and tourists
Residents are not the only potential audience for your salon business. Many tourists and short term visitors also require beauty services. This could be an express hair cut before a night out, simple nail and skin care, or a full-on pamper session.
There are also many events in Dubai that require beauty services. This includes corporate bonding events, weddings, fashion shows and plenty more.
Tax advantages and business-friendly policies
Dubai offers one of the most attractive tax regimes in the world. There is no personal income tax and 0% corporate tax on profits up to AED 375,000. The rate is just 9% on taxable profits beyond this threshold. The only other tax of note is VAT at a flat 5%.
Dubai is also incredibly business friendly. As well as a streamlined licensing process, there are also many accelerators and incubators along with funding opportunities for startups and small businesses.
Marketing strategies and launching your salon
When launching your new salon business, you should consider marketing and brand strategy to reach as wide an audience as possible. Key considerations include:
Building your brand and identity
First things first, you should determine what sets you apart from the competition. This could be your level of service, location or types of treatments offered. For example, you may offer a specific skin rejuvenation product that is hard to find elsewhere or offer packages for specific events such as weddings.
Be sure to choose a name, logo and brand that helps you stand out too. Make your messaging short and impactful, offer incentives to garner reviews and consider partnering with well-known brands to increase your presence and authority.
Social media and online marketing tips
Make the most of the tools at your disposal to build your brand and your audience. Before and after shots and behind the scenes treatment videos have the potential to attract attention on platforms such as Instagram and TikTok.
As well as great visuals, offer tips and advice through your social media. If you can gain a reputation as a helpful, valuable and authoritative voice, you will quickly build a loyal audience. And remember, beauty influencing is big business. Try to partner with those in your space to quickly increase your credibility and reach.
Grand opening ideas and promotions
Your launch is your first opportunity to make an impression, so it’s vital that you make it count. Consider a soft launch or opening with friends, family and selected customers to test your products and service before a formal grand opening.
As well as posting details of your launch on social media, try to engage with online forums, blogs and local press to attract as much attention as possible.
Ongoing compliance and operational considerations
When operating a beauty salon in Dubai, you’ll need to keep several ongoing and operational considerations in mind. These include:
Health and safety standards
All relevant equipment must be sterilised after use, all unsanitary items must be disposed of correctly, and all staff must follow hygiene protocols. Your salon must also meet Dubai Municipality and health and safety standards. This includes adequate ventilation, appropriate flooring and surfaces, and staff health checks.
Regular license renewals
There are several regular renewals to keep abreast of when running a salon business in Dubai. As well as renewing your trade license, you’ll need to ensure that all relevant permits and permissions are up to date.
On top of this, you’ll need to monitor and manage staff contracts and ensure health insurance and visas are regularly renewed for yourself and your employees.
Keeping up with trends and innovations
Dubai’s beauty market is highly-competitive and trend driven. The popularity of services can change quickly. As can tastes for certain products. Make sure you and your team have your finger on the pulse with regard to new technologies, trends and treatments. If you can be the first to offer a service, you have an opportunity to gain a competitive edge.
Encourage regular client feedback on your team and your services to see if customers have any demands that are not currently met.
FAQs about starting a salon in Dubai
How much money is required to open a salon in Dubai?
The cost of starting a salon depends on numerous factors. Most notably, the size of the space you require and the treatments you intend to offer. For a small, one person business offering nail services, you may require AED 10,000 to AED 25,000 while a full-scale salon could cost upwards of AED 350,000.
How much do beauty salons profit in Dubai?
The level of profit you can expect to generate will depend on the size and nature of your business. As a general rule of thumb, average profit margins are in the region of 10%-20% across the beauty industry.
What is the cost of a ladies salon license in Dubai?
The cost of a ladies salon license in Dubai is in the region of AED 8,000-12,000. There may be additional costs for approvals on top of this.
What is the cost of a gents salon license in Dubai?
The cost of a gents salon license in Dubai is AED 8,000 to AED 12,000. In many cases, it is cheaper to open an gents salon than a ladies salon due to the space needed and range of treatments offered.
Why work with Creative Zone for your salon setup
Starting a salon business in Dubai can be a complicated process – particularly if you’re new to working in the UAE.
That’s why selecting the right partner is a critical step when looking to launch or grow a business out here. As the Middle East’s most trusted advisor on business setup in Dubai, Creative Zone has been empowering entrepreneurs and SMEs with comprehensive support since 2010. With a strong reputation for assisting businesses locally and globally, we offer a complete range of solutions for all your business setup needs.
When you work with us, you get fast, reliable and unbiased advice on your unique business setup requirements. We can help you choose the right kind of license for your business activity and take you through the entire process from start to finish.
We’re here to assist every step of the way. No matter your chosen activities, legal entity or visa requirements, we’re on hand with support, guidance and expertise.
Contact us today to kickstart your business in Dubai.
