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how to start vending machine business in Dubai, UAE

How to Start a Vending Machine Business in Dubai: A Complete Guide

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Are you looking to start a business in Dubai? A vending machine can be your next successful venture. However, the registration process can be a little complicated for new entrepreneurs and business owners.

But worry not!

Avyanco Business Setup has over a decade of experience helping entrepreneurs launch successful companies. With an in-depth understanding of the business registration and licensing processes, we help you through each step of your entrepreneurial journey.

In this blog, we will help you understand:

  • What a vending machine business is 
  • How lucrative is the market 
  • and how you can start your own venture

So, let’s go through all the details. 

What is the Size of the Vending Machine Market in UAE?

The UAE’s vending machine market is currently estimated at $85.66 million. The market is projected to grow at an impressive CAGR of 14.01% from 2023 to 2029, reaching $188.13 million. 

Key growth factors behind the vending machine market growth are rising youth demographics that want convenience and snacks on the go without visiting a shop. Due to modern and busy lifestyles, people are looking to adopt more cashless payment methods and a more personalised shopping experience. 

For example, Dubai has 73.86% of residents below 40 years old, which is a prime vending customer demographic. With the right product and location, there is a huge potential for growth and profitability.

Steps to Start a Vending Machine Business in Dubai 

Here are the exact steps to start a vending machine business in Dubai.

1. Market Analysis

Deep market research is the first step in establishing a successful vending machine business in Dubai. You must conduct research on your target customer demographics to understand their consumption patterns and food/beverage preferences.

In addition to that, you must analyse footfall at your shortlisted locations during peak hours. You must also conduct a competitor analysis to have a good idea of which products in nearby areas are popular with other vending machines. 

This will help you determine your USP by understanding gaps. You will also get a good idea of high-demand products that you must include.

A good example to understand this – 

Vending water bottles near gyms do very well as people get thirsty more often there. However, the same vending machine may generate little to no demand next to coffee shops.

2. Find the Right Location

The next big question is – Where can I place a vending machine in Dubai?

Areas with maximum footfall during the day and even night are ideal for a vending machine placement. Malls, metro stations, and large office parks are the most suitable spots where thousands of people can access your vending machine every day.

Other areas like car service centres, hospitals, and grocery stores also generate decent profits if you sell the right product.

Just make sure that the spot you choose is easily accessible, has a power supply, and allows the required permits.

3. Register Your Business Name

To register your vending machine business in Dubai, you must first register a unique business name as per Dubai’s strict naming guidelines. The chosen name must not contain any restricted words or names used by other businesses. 

If you face any trouble finding the right name for your business, our experts can instantly check availability and handle the end-to-end registration process for you.

4. Obtain a Vending Machine Licence

It is mandatory to obtain a vending machine licence in the UAE as it is a highly regulated business here. You need to submit an application to the Department of Economic Development (DED) for the licence.  

5. Documentation

You need to submit all the documentation during the approval. You must have all the required documents, and they must not contain any errors. 

The list of documents you need include:

  • Passport copies 
  • Photos 
  • No-objection letters from sponsors or tenants 
  • Proof of capital 
  • Office lease 
  • Business plans 

Depending on your location and products, there may be more documents or approvals required. As one of the top business consultants in UAE, Avyanco can help you prepare all the necessary paperwork and attest it with relevant authorities before submitting your application. 

6. Finding the Right Vending Machine

You must choose the vending machine that perfectly suits your business and operational needs. Different models are available for different products and for specific locations. 

Areas with high footfall may require large machines that can accommodate a large number of products. Whereas in an office complex, you may only need a compact unit. For products like ice creams and cold drinks, you may need a machine that also has a refrigeration facility.

7. Apply for Relevant Visas

After the licence is approved, you can set up your vending machine and start your business operations. However, every business requires employees. For maintenance and refilling of vending machines, you need staff. Apply for relevant visas for yourself, your family, and employees if necessary. 

Avyanco Business Setup can smooth the overall visa application process for you with its years of experience.

Is a Vending Machine Business Profitable in Dubai?

Yes, a vending machine business is profitable in Dubai. However, it is not a get-rich-quick scheme. If done right and with multiple vending machines, you can expect a revenue of $65 per week. In tourist-rich locations, shopping centres, or stations, the revenue can go over $100 a week.

As you scale and add more machines, you can expect the revenue and profit to increase exponentially.

What is the Cost of Starting a Vending Machine Business in the UAE?

Between 20,000* AED and 30,000* AED is the cost of opening a vending machine business in Dubai. However, this cost can go up or down based on certain factors, such as Mainland or Free Zone licence fees, commercial space rent, maintenance contracts, and the cost of vending machines.

Want to Calculate the Cost of your Vending Machine Business in Dubai? Book a Meeting Now

Partner with Avyanco Business Setup to Start Your Vending Machine Business Hassle-Free

If you have read this far and want to register your vending machine business, connect with Avyanco’s expert business consultants today. Our consultants ensure your vending machine launch is smooth, cost-effective, and efficient. 

We offer end-to-end support to help you get a vending machine licence and name registered instantly. Our experts also provide the necessary guidance in finding the right locations and offer post-incorporation consulting to ensure your business is compliant with UAE laws.

Contact Avyanco Business Setup today for your free consultation.

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