How To Setup Shisha Café in Dubai, UAE 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.

[blockCTATradeLicense]

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.

[blockFaqsCategory]

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.

[blockCTABizActivityList]

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.