How to Start a Salon Business in Dubai: Cost, Approvals & Profitability

‍Key Takeaway:

• Starting a salon in Dubai requires choosing the correct business activity, securing a compliant location, and meeting Dubai Municipality health and hygiene standards.
  
  
• Costs depend on your setup, with licenses, fit-out, and staffing making up the main expenses, while well-positioned salons can earn strong monthly profits and break even within 12 to 18 months.
  
  
• RadiantBiz helps new salon owners navigate approvals, budgeting, and compliance so they can avoid common mistakes and launch with confidence.

The Rise of Salon Businesses in Dubai—and How You Can Join In

Dubai is a city that never slows down, and neither does its beauty industry. Whether it’s residents, tourists, or expats, the demand for salon services continues to skyrocket. 

If you’ve been thinking about starting your own salon in Dubai, you’re tapping into one of the most profitable and rewarding sectors in the UAE. The country’s salon industry is valued at around $1.2 billion as of 2024, and it continues to grow at a steady Compound Annual Growth Rate (CAGR) of 4.2%.

In this article, we’ll guide you through everything you need to know about how to start a salon business in Dubai, from initial approvals to estimated costs and the profitability you can expect. 

With years of experience in helping entrepreneurs set up businesses across the UAE, we’ve seen firsthand what works and what doesn’t. So, let’s dive in!

Types of Salon Businesses You Can Open in Dubai

Before you get started, it’s crucial to understand the different types of salons you can open in Dubai. 

Whether you're planning to run a traditional women’s salon, a gents’ barber shop, or even a mobile salon, your business model will determine the requirements and costs involved.

Women’s Salon vs. Men’s Salon

• Women’s salons are typically in high demand in Dubai, catering to a diverse clientele. They can offer a range of services from haircuts to facials and manicures.
  
  
• Men’s salons (or gents’ barber shops) are also popular, especially in a city where grooming is a priority for both residents and visitors. These salons focus more on haircuts, beard trimming, and basic skincare.

Beauty Spas and Specialized Salons

If you want to offer specialized services like massage therapy, facials, or even advanced skincare treatments, you’ll need additional permits. 

These businesses often require approval from the Dubai Health Authority (DHA) for certain medical or therapeutic services.

Mobile Salon Services

Offering mobile beauty services from the comfort of your clients' homes is a growing trend. However, starting a mobile salon has fewer infrastructure costs but still requires the same licensing process.

• Expert advice: Each type of salon business comes with its own set of rules, approvals, and costs. So, choosing the right type for your target market is essential before proceeding with the next steps.

Step-by-Step Process for Starting a Salon in Dubai

1. Choose the Correct Business Activity & Get Initial Approval

First and foremost, you need to select the correct business activity code. The Dubai Department of Economy & Tourism (DET) classifies salon businesses under different activity codes. Getting this right is critical, as any misclassification can lead to delays or even rejections.

• Expert insight: A beauty salon falls under a different category than a barbershop. The same goes for offering additional services like spa treatments or henna services.

2. Decide Between Mainland and Free Zone

While Dubai’s free zones offer certain benefits, such as tax exemptions, the most common choice for opening a physical salon is to set up in the mainland. Mainland salons can serve clients anywhere within the UAE, while free zone salons may only cater to clients within the designated free zone area.

This is why many entrepreneurs first explore Business Setup Services in Free Zone Dubai to understand the limitations, cost structures, and suitability before making a final decision. It’s also important to factor in additional costs such as rent, staff visas, and operational approvals.

3. Reserve Your Trade Name

You need to choose a salon name that follows DET or free zone authority naming rules, no offensive words, no religious references, and if you include your own name, it must be your full name.

4. Get Ejari / Lease a Salon Space

A salon license cannot be issued without a physical location. You must:

• Choose a shop that meets the Dubai Municipality (DM) salon standards
• Get a tenancy contract + Ejari
• Ensure enough space, proper ceiling height, ventilation, and water supply

5. Get Dubai Municipality (DM) Health & Safety Approvals

This is the most detailed step. DM inspects these components:

Without DM approval, the salon cannot open.

6. Submit Final Documents & Get License Issued

After securing the initial approval, the trade name, Ejari (tenancy contract), and municipality clearances. You must submit the final documentation and receive the official salon license.

7. Apply for Staff Visas & Hire Certified Professionals

Salon staff must have:

• Attested professional certificates
• Relevant experience
• Health cards
• Employment visas

Salon managers also need a minimum qualification approved by DM.

8. Buy Equipment & Complete Interior Fit-Out

Includes chairs, mirrors, sinks, hair-washing stations, sterilizers, and massage tables (if spa services are included). 

Fit-out must follow DM-approved plans.

9. Open Your Corporate Bank Account

Mandatory for payments, staff salaries (WPS), and business expenses.

The Costs of Starting a Salon in Dubai

Starting a salon in Dubai isn’t as inexpensive as opening a small retail store, but it’s a profitable venture if done right. Here’s a breakdown of the primary costs involved in opening a salon:

License Costs

The cost of getting a business license for your salon depends on your location, size, and the services you plan to offer. When evaluating the Business License cost in Dubai, you can expect to pay anywhere between AED 8,000 and AED 15,000 (USD 2,200 to 4,100) for a basic DET license.

This cost can increase if you offer specialized services such as spa treatments, advanced beauty therapies, or require additional regulatory approvals.

Salon Fit-Out Costs

The design and setup of your salon space will likely be your highest initial cost. A basic fit-out for a small salon could cost around AED 25,000 ($6,807.35), while a more luxurious or larger space might push costs to AED 100,000+ ($27,229+). 

You’ll need to invest in high-quality furniture, equipment, and decor to make your space both functional and appealing to clients.

Staff and Operational Costs

Labor costs will vary depending on the size of your salon and the services offered. You will need to hire skilled staff such as hairstylists, beauticians, and receptionists. 

On average, expect to pay around AED 2,000 to 5,000 ($544 to $1,361) per month per employee, depending on their skills and experience. Additionally, you’ll need to budget for operational costs like utilities, inventory, marketing, and ongoing training.

Additional Approvals

If you’re offering any specialized services, such as spa treatments or therapeutic services, you’ll need additional approvals from the DHA. 

These approvals can come with extra costs, and they’ll also add to your timeline. However, these are vital for your credibility and customer trust.

Understanding the Profitability of Your Salon Business

The beauty industry in Dubai is not only stable but also lucrative. Depending on your location, service offerings, and customer base, you can expect a salon business to generate a significant income. Here's what to expect in terms of profitability:

Revenue Potential

A small, standard salon can earn anywhere between AED 15,000 to AED 40,000 ($4,084 to $10,892) per month. 

However, more luxurious salons or those offering premium services like hair extensions, high-end skincare, or spa services can bring in upwards of AED 100,000 ($27,229) per month. 

Keep in mind that location plays a big role. High-traffic areas with lots of footfall tend to have the best profitability.

Return on Investment (ROI)

Typically, most salon businesses in Dubai break even within 12 to 18 months, depending on your initial investment and marketing efforts. With the right pricing strategy and effective marketing, you could see profits in the second year of operation.

Legal Requirements and Compliance for Salons

Operating a salon in Dubai requires you to meet specific legal and health standards to ensure your business remains compliant. Here’s a rundown of key legal requirements:

Hygiene & Safety Regulations

Dubai is known for its high hygiene standards, so your salon must meet health and safety regulations. This includes sterilizing tools and providing clean, safe spaces for clients.

Staff Qualifications 

Employees in beauty salons must have the necessary certifications and licenses. Hairstylists and beauticians need to be trained and certified by relevant bodies.

Insurance

It’s essential to get liability insurance to cover potential risks related to injury or accidents.

Best Locations to Open a Salon in Dubai

Dubai has several areas that are perfect for salon businesses, especially those that attract high foot traffic. Here are some of the best locations to consider:

Choosing the right location is crucial, as it will directly impact your footfall and overall profitability.

How to Start a Salon Business in Dubai with RadiantBiz

When you start a salon business in Dubai with RadiantBiz, our business setup consultants in Dubai guide you through each step with support tailored specifically for beauty entrepreneurs. We begin with a quick market assessment to help you understand demand, ideal locations, and the salon services that perform best in Dubai. Our team also assists you in preparing a strong business plan and setting a realistic budget both critical requirements for salon approvals. We ensure you avoid common pitfalls, such as choosing the wrong space, hiring uncertified staff, or overlooking Dubai Municipality regulations. With this structured guidance, you launch your salon on the right footing and significantly improve your chances of long-term success in Dubai’s competitive beauty industry.

FAQs

1. Do I need a local sponsor to open a salon in Dubai?

No, free zones already offer 100% foreign ownership, which has been adopted by the mainland too. 

2. What qualifications do my staff need to work in my salon?

Your staff must have the appropriate certifications for beauty & hairdressing services, usually from a recognized institution in the UAE or internationally.

3. How long does it take to set up a salon in Dubai?

From initial approval to the final license issuance, it typically takes around 2 to 4 weeks to open your salon in Dubai, depending on the location and business setup process.

Ready to Start Your Salon Business in Dubai?

Starting a salon business in Dubai is an exciting opportunity that can lead to significant financial rewards if done properly. From choosing the right type of salon to navigating the licensing process and understanding your costs and profitability, every step counts.

With proper planning, a great location, and top-notch customer service, you’ll be able to build a successful salon business that stands out in Dubai’s competitive market. 

So, if you're ready to open your salon, take that first step and reach out to a business consultant or licensing authority to get started.

Seek our professional on-the-ground guidance, contact us via mail at info@radiantbiz.com, WhatsApp‬, or call us at +971521322895‬!