Table of Contents
Topic Summary
Steady Demand Drives Shisha Café Growth
The global waterpipe market is projected to reach USD 25 billion by 2028, with the Middle East accounting for over 80 per cent. Licensed shisha cafes in the UAE grew by roughly 15 per cent between 2020 and 2023.
Social Culture Keeps Guests Coming Back
Shisha is a deeply rooted way to relax and socialise in the UAE, drawing both locals and tourists. Long sittings mean higher spend per table, making each visit commercially valuable for operators.
One License Covers Shisha and Food Service
A Meydan Free Zone business license under activity 5630.94 allows you to prepare and serve flavoured shisha alongside drinks and food. Existing cafes and restaurants can also add shisha under the same license.
Dubai Municipality Approval Is Required First
Before Meydan Free Zone can issue your business license, you must obtain pre-approval from Dubai Municipality. This is a mandatory compliance step specific to shisha service activities.
Know What the License Does Not Cover
The license does not permit retail sale of shisha tobacco, pipes, or accessories as goods, nor does it cover serving alcohol, which requires a separate license. UAE smoking, tobacco, and age regulations also apply, including a strict no-service rule for minors.
Rooftop and Scenic Venues Command Premium Rates
Venues with attractive settings, such as rooftop locations, can attract premium guests willing to spend more. Combined with food and drink upsells, this makes shisha cafes a high-margin hospitality trade.
How To Setup Shisha Café in Dubai With Meydan Free Zone
Shisha services means serving shisha to guests at a cafe or lounge. You prepare and serve flavoured shisha alongside drinks and food. In the UAE, shisha is part of the social and cafe culture, so demand is steady among locals and tourists.
The market is growing. The global waterpipe market is set to reach about USD 25 billion by 2028, with the Middle East making up more than 80 per cent of that. 1 In the UAE, the number of licensed shisha cafes rose by about 15 per cent from 2020 to 2023. 2 Long sittings and food and drink sales make each visit valuable.
For operators, this means a busy, high-margin trade. A Meydan Free Zone business license lets you run shisha services. It does need approval from Dubai Municipality first, as shown below.
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Why Shisha Venues Do Well
- Social culture: Shisha is a popular way to relax with friends.
- Tourism draw: Visitors seek out Dubai's shisha lounges.
- Long visits: Guests stay for hours, lifting spend.
- Food and drink: Extra sales boost each table's value.
- Rooftop appeal: Scenic venues attract premium guests.
Shisha and the UAE Cafe Scene
Shisha is woven into the UAE's cafe culture and tourism. Here are the key numbers.
Sources: Smart Zones UAE; Verified Market Research
Who Is This Activity For?
5630.94 – Shisha Services
This activity sits within the broader Beverage Serving Activities class, which covers cafes, bars and venues that serve drinks for enjoyment on the premises. Within it, this activity is shisha service: preparing and serving flavoured shisha to guests, usually with drinks and food.
The license covers serving shisha at a venue. It does not cover selling shisha tobacco or pipes as retail goods. It also does not cover serving alcohol, which needs its own license. Those limits are shown in the exclusions below. Shisha service must follow UAE tobacco, smoking and age rules.
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It helps to be clear on what this license does not cover. It does not cover selling shisha tobacco, pipes or accessories as retail goods, which is a separate trading activity. It also does not cover serving alcohol, which needs its own license. And it must follow UAE smoking, tobacco and age rules, including no service to minors.
In short: if you are serving shisha to guests at a venue, you are in. If you are selling tobacco or pipes as goods, or serving alcohol, those are separate activities.
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Compliance
THIRD-PARTY APPROVAL
This activity requires pre-approval from Dubai Municipality (DM) before a business license can be issued by Meydan Free Zone.
ANTI-MONEY LAUNDERING COMPLIANCE
This business activity is not subject to AML compliance requirements.
References
1 Smart Zones UAE. The global waterpipe smoking market is projected to reach about USD 25 billion by 2028, with the Middle East contributing over 80 per cent.
2 Verified Market Research. Licensing of hookah cafes in the UAE rose about 15 per cent from 2020 to 2023.
