How to Start a Vending Machine Business in UAE

The vending machine business in UAE is on the radar of many entrepreneurs, especially those engaged in seasonal business or people looking for a side hustle. With the upward trajectory of its growth and promising returns, there are many people willing to get a vending machine UAE license.  Not only this, but the lower investment cost, feasibility, automation, and all the other features possess the capacity to attract those willing to get into the market of the UAE’s rich economy. 

In this informational piece, we will discuss the various aspects of this business and gain in-depth knowledge of how to get started with the vending machine business in UAE. But before that, let us get some insights into this industry.

Insights of vending machine business in UAE

Due to rising convenience demand, the vending machine industry in the United Arab Emirates is predicted to develop at a compound annual growth rate (CAGR) of 8.2% between 2022 and 2027. Estimated to be worth USD 75 million in 2021, with the market still rapidly growing. 

43% of customers are health-conscious and are driving demand for better snack options. Additionally, about 70% of shoppers in the UAE favour convenient, fast shopping—something that vending machines offer. The rise of cashless payments accounted for 63% of transactions, coinciding with the UAE’s cashless economy objective.

Strategically located in high-traffic areas like Dubai International Airport, which handles over 89 million travellers yearly, these machines benefit from enormous foot traffic. Many products, such as technology and freshly prepared food, are available to accommodate the diverse populace. Putting together the overall trends, this vending machine business in UAE has a lot of scope for lower investment with good returns. 

Advantages of vending machine business UAE

There are several benefits of starting a vending machine business in the UAE. These advantages can be summed up as follows:

• Lower investments: The best part about owning a vending machine’s UAE license is that the investment is very low, as compared to starting other businesses.
• Tax evasion: The Emirates law of 0% income tax rate on personal and corporate gain earns you a good profit. 
• Reduced labour cost: There is little to no need for labour as these vending machines are generally automated. Thus, you save money on the labour.
• Works 24×7: The vending machines work 20×7; this means that you are earning money when you are fast asleep. Thus, a true business for passive income. 

What is meant by a vending machine UAE license?

A vending machine UAE license is a government permit that allows you to put up your vending machines in the nation. These licenses are not the same for all and might differ as per the company registration in UAE is done. This license will be subject to the places in the Emirates you want to put your vending machines, the products you plan on selling, and other factors like the brands you will be using. It is always better to get in touch with the local authorities to understand the process better and the criteria required to meet it.

How to start a vending machine business in UAE?

For a vending machine business formation in UAE, you need to go through a process to make sure that you are following the regulatory compliance and guidelines set forth by the UAE’s government. You can understand the whole process with the simple pointers given below.

1. Determine Your Operations:

Start by analyzing the consumer market to decide on the type of vending business you want to establish. Identify which products are in demand and assess your competitors to find gaps in the market. Here are some popular options to consider:

• Food and drinks: A variety of snacks and beverages.
• Bulk products: Small products like toys and gum are sold in bulk.
• Speciality vending: Tobacco, laundry items, hot beverages, retail goods, and cannabis (where permitted).

2. Locate the Ideal Site:

Next, you must choose the appropriate location for your vending machines. It’s ideal to target areas with high traffic to maximize visibility and accessibility, such as schools, hospitals, shopping malls, transportation hubs, gyms, office buildings, apartment complexes, industrial zones, and automobile dealerships. Once the location is selected, discuss commission rates with property owners or management, talk about how much is paid for the use of space and utilities.

3. Obtain a Business Registration:

You must register your vending machine business in UAE through following steps:

1. Lawful framework: Select an LLC company formation in Dubai or individual proprietorship.
2. Trade name: Pick a distinctive and enduring moniker.
3. Request approval: Send the required paperwork to the DED.
4. Business license: Consult the Department of Economic Development (DED) to obtain a vending machine license Dubai or UAE.
5. Vending machine license: Obtain one from the Municipality of Dubai.

4. Recognize the regulations in the UAE:

Make sure to adhere to all the legal requirements pertaining to vending machine business in UAE. You must comply with the directives of the Emirates Authority for Standardisation & Metrology (ESMA). Also, in case you plan to offer food and drinks, then you must secure approval from the Food Control Department. For vending of food and drink. Additionally, it is important to obtain the required permissions for machine inspections and location approval.

5. Selecting a Vending Machine:

You must select the appropriate vending machine that meets all your business and operational needs. You can find different models for different products in the UAE. Do some research online and take into account local vendors. Consider machine features, recurring costs, and initial investment while choosing one.

The best way to go about them while living abroad is to hire someone like Dubiz Business Setup to help you understand the intricacies of the system. They not only help with company formation in UAE but also with the visas required for the business. From employment visas to business licenses, they prove to be reliable places to meet your requirements. 

Setting up a vending machine business in Dubai: Eligibility and costs

Setting up a vending machine business in Dubai seems to be an attractive option, given the popularity of the Emirate. If you are also someone willing to do that, here are the eligibility, and costs that you should be aware of:

1. Eligibility for vending machine business UAE:

• UAE residency: to establish a vending machine business, the primary requirement is to be a UAE resident or own a valid UAE residence visa. 
• Age: The minimum age bar for people to start a business in Dubai, UAE, is 18 years. 
• Capital proof: you cannot start a business in the Emirates without showing proof of how you will be supporting it financially.

2. Cost of vending machine business UAE:

The cost of setting up a vending machine business in Dubai can be somewhere around AED 23,000*. The factors that will determine the total cost are as follows:

• Vending machines: Depending on the model, size, and features, vending machine costs can change. Be prepared to make a sizable first investment.
• Inventory: Stock your machines with a range of products, taking into account things like demand, profitability, and expiration dates.
• Location charges: reimburse the property owners or management for the vending machine space by means of rent or commission.
• Permits and licenses: Obtain the required authorizations and licenses; costs may apply.
• Maintenance and repairs: To make sure your machines are operating correctly, set aside money for routine maintenance and repairs.
• Marketing and promotion: To draw clients and boost revenue, spend money on marketing and promotional initiatives.

For an intricate and detailed version of the information, we suggest you hire a business setup firm like Dubiz Business Setup to help you with the company formation in UAE. 

Dubiz’s Take

As the process of company formation in UAE is long and complex, Dubiz Business Setup tries to make it easier for you. We are a team that has the required knowledge and skills to help you speed up the process by reducing the chances of error, as we know the system from within. From issuing your UAE residence visa to helping you get the business permit, we can cover it all for you. 

Reach out to us: Call or WhatsApp us at +971 563695485, or email info@dubiz.co.

FAQs

1. What products can I sell via a vending machine business in UAE?

Snacks, drinks, newspapers, magazines, DVDs, and picture booths are just a few of the many goods and services that the UAE’s vending machine business provides. Some vending machine operators provide special machines that target particular groups of people, including health food vending machines that provide nutritious foods and drinks.

2. Is the vending machine business profitable in Dubai?

The profitability of the vending machine business will be dependent on the areas of the set-up. In the fast-paced world, vending machines are a convenient option, but the location of the machine can prove to be a game changer 

3. What type of visa do I need to set up a vending machine business UAE?

All vending machine companies in Dubai must get a “Vending Machines Trading License,” which calls for a Mainland Company structure, in order to operate lawfully. In the legal system of the United Arab Emirates, this is classified as a commercial license.

4. Which is the best place in UAE to start my vending machine business?

The best locations for your vending machine are malls, train stations, and expansive office parks, where thousands of customers can access it daily. If you sell the correct goods, you can make good money in other places including grocery stores, auto repair shops, and hospitals.

5. What is the minimum age restriction for starting a vending machine business in UAE?

This type of business lies under a commercial business license, and thus the minimum age restriction is 18+ years of age.