Parboiled. Basmati. Jasmine. Sticky. Black. Arborio. Brown. Carolino. Rosematta. Those are just a handful of the varieties of rice that many popular dishes include as an ingredient. Visiting a supermarket to buy a bag of rice can sometimes be overwhelming due to the many choices. The good thing is that rice is a staple food item, especially in a region as diverse and cosmopolitan as Dubai and the United Arab Emirates.
The love for this grain in the UAE continues to grow, and it is one of the food products with the highest demand. That’s a recipe for a successful and profitable food import business.
So let’s jump right in. In this article, we’ll look into the following:
- Advantages of starting a rice business in Dubai
- Steps to start a rice business in Dubai
- Cost of starting a rice business in Dubai
- Best practices for rice business owners in Dubai
- Building a strong brand identity
- Developing strong relationships with suppliers and customers
- Investing in technology and innovation
- Business setup in Dubai with Trade License Zone
Rice business in Dubai and the UAE – an overview
Rice is a foodstuff in high demand in the UAE. It is one of the FMCGs (fast-moving consumer goods) that people rely on and use daily. The bigger the population grows – and it is growing constantly in Dubai – the greater the food imports to meet that demand. Companies importing and exporting food products are seen by the UAE authorities as essential as they provide food security.
The rice market is growing by more than 3% per year and is worth about AED 658,000,000 annually. Currently, India is the biggest rice exporter in the world, and the UAE is the biggest single-market importer of India’s rice. It also imports rice from Thailand and Vietnam suppliers.
As a trading hub, the UAE also exports rice to the GCC (Gulf Cooperation Council) countries, a significant supplier to this region.
Advantages of starting a rice business in Dubai
Food security remains a challenge in Dubai. More than 75% of food products are imported to Dubai, mainly because the desert is simply not conducive to growing essential food items such as rice. That means starting a rice business in Dubai will be profitable.
Dubai boasts a world-class infrastructure and central location for food import. Fantastic ports and road networks make it easy for importing companies to operate. The UAE government has a mutually beneficial agreement with 18 other Middle East and Arab countries with which it can trade on a customs-free basis.
The UAE government also offers incentives for entrepreneurs, such as zero taxes on personal and corporate incomes, straight business setup regulations, an easy importing and exporting process, and a world-leading business industry that will help to grow your company.
Steps to start a rice business in Dubai
There are seven steps to starting a rice business in Dubai. This section will help you understand the process better.
Step #1: Partner with Trade License Zone
When starting a food import company for rice imports and exports, you should partner with Trade License Zone. Our professional team will manage all aspects of your trade license application and business setup and liaise with all government departments and agencies on your behalf.
Step #2: Choose a company name
Trade License Zone will help you choose and register your rice trading company’s name with the UAE’s Registry Office. You can use your name in the business name, but you must use it in full instead of just your surname or initials. The business name must adhere to the UAE’s naming policies – for example, a business name cannot include offensive or blasphemous language or references to Allah or Islam.
Step #3: Rent office and warehouse space
It is best to find an office and warehouse located near the ports and roadway links, as this will make it easier for logistics. There are numerous facilities within easy reach of the road links and ports, with business areas specifically for importing and exporting foodstuffs and other food products in Dubai. You can choose one that’s best for your space needs and budget with the help of a local real estate agency that specialises in such businesses.
Step #4: Apply for Initial Approval
In applying for your food items license with the UAE’s Department of Economic Development (DED), you must submit documentation for initial approval to continue with the remainder of the trade license application process.
Documents required for this step include:
- Copy of the owners’ and shareholders’ passports and visas
- Copy of the office and warehouse rental contracts
- Municipal approvals
- Company name approval from the Registry Office
Step #5: Select a business setup
You must choose whether to set up your business on the Mainland or in a Free Zone in Dubai. There are numerous benefits to both business jurisdictions, but each has specific attributes that determine the company’s formation setup.Free zone companies are the most popular and cost-effective of the two types of business jurisdictions in Dubai.
Here, you can 100% own your business, but you will need to set up a branch or another intermediary to trade directly with the Dubai domestic market. Selecting the correct business setup for your rice business might seem complicated. When you contact the expert team at Trade License Zone, we will help you to choose the best company setup formation to start trading as soon as possible.
Step #6: Apply for a trade license
Once you’ve completed the above steps, you can submit your rice business trade license application to the DED. Trade License Zone can help you with this critical step to avoid errors, delays or rejections.
Step #7: Apply for visas and open a corporate bank account
After you’ve applied for your trade license in Dubai, you need to apply for your visa and open a corporate bank account for your food imports and exports company.These can be complicated processes. Contact our specialist team at Trade License Zone for help with all the details and paperwork.
Cost of starting a rice business in Dubai
The cost of starting a rice business in Dubai ranges from AED 20,000 to AED 25,000. This cost varies due to several factors, such as the trade license cost, visas, business registration, office and warehouse rentals, and other government fees and certificates.Contact the expert team at Trade License Zone for a free consultation on the costs and steps involved in starting a rice business. Our specialists will guide you throughout the process, from the moment you begin your trade license application to the day you start trading.
Best practices for rice business owners in Dubai
Your new business can offer high-quality services and products to clients in the UAE and the GCC region. Importing and exporting rice from around the world is made easier thanks to the trade resources available by the Dubai Municipality. We share the best practices for rice business owners in Dubai.
Building a strong brand identity
It is no secret that the UAE imports a large quantity of rice from around the globe. Your brand needs to be strong for customers to pick it from amongst the other brands available on supermarket shelves.Here are some tips on building a strong brand identity:
- Research your target market and competitors to highlight areas you can focus on
- Create a brand story, a personality, around your products and company that people can relate to
- Create a slogan and logo design that is memorable and relevant to the target market
- Effectively brand your company across all social media channels and advertising with a unified voice
Developing strong relationships with suppliers and customers
Developing strong relationships with suppliers and customers means choosing suppliers that align with your values and vision. Understand your suppliers’ needs, and they can better learn about your needs. Communication is key to developing strong relationships with suppliers and customers – always be one step ahead of them with timely feedback. You also must reward good service with loyalty, which goes for suppliers and customers alike.
Investing in technology and innovation
Investing in technology and innovation is vital to growing your company, as it improves your business’s efficiency, products, and systems. Keeping up-to-date on the latest technology (such as CRM systems or logistics software) and industry-specific courses will help you and your staff to provide the best services.
Business setup in Dubai with Trade License Zone
Business setup in the UAE is straightforward with a professional partner such as Trade License Zone. When starting a rice business in Dubai, we help you with all the formalities required, including a food import trading license, government approvals, business setup, company registrations, local sponsor dealings, and more.The experienced team at Trade License Zone can get started once you provide us with some basic documentation of your business and a little information about the nature of your business. Then, just sit back and let our team take care of the rest. We’ll manage your business license application and business activities, communicate with all necessary authorities and formalities and report when you’re ready to open your food products company in Dubai. It really is that simple.