How To Setup Shisha Café in Dubai, UAE With Meydan Free Zone

From aroma to ambience, Dubai’s shisha cafés sell an experience.

The café culture in Dubai is moving at lightning speed, and shisha lounges are leading the trend. Shisha demand is expected to skyrocket to nearly 90% of the hospitality sector of UAE in the coming year.

Whether it’s sunset views over Downtown or late-night vibes, shisha cafés offer more than just flavour, they’ve become social hubs for locals, tourists, and expats alike.

If you're planning a business setup in Dubai, this segment offers strong potential, especially with flexible licensing options available through Meydan Free Zone. Many entrepreneurs also choose remote business setup to launch their hospitality concept without needing to be physically present during incorporation. Before applying, it’s recommended to review the business activities list to confirm that your lounge concept aligns with permitted hospitality activities.

Shisha Services (5630.94)

This business activity allows you to open and operate a shisha lounge or café where flavored tobacco is prepared and served for on-site consumption in a regulated, hospitality-focused setting.

You can set up a full-service lounge or combine your shisha offering with beverages and light snacks in a dedicated space. Whether it’s a waterfront venue, rooftop spot, or indoor lounge, your setup must comply with all health, safety, and ventilation requirements defined by local authorities. Many founders opt for the Fawri setup route to speed up licensing and begin fit-out planning without delays.

This business activity strictly covers on-site preparation and service of shisha in a controlled environment. It doesn’t allow for off-site retail sales of tobacco products, operation from temporary stalls or kiosks, or combining your space with unrelated retail trade (like grocery or beverage sales without on-site service). In short, it’s built for curated, sit-down hospitality experiences, not for retail or resale models. You can also use the business setup cost calculator to estimate your license cost, visa allocation, and operational budget before starting.

Third-party Approval

DM (Dubai Municipality) approvals are required for this business activity, before obtaining the license.

Anti-Money Laundering Compliance

Business activity 5630.94 is exempt from this requirement.