The most expensive fines in Dubai

What kind of business definitely doesn't need to be opened in Dubai in 2025?

The UAE is becoming an international business hub, which has made the region's business environment highly competitive. Starting a business in Dubai requires a financial cushion and a deep understanding of the market and its niches.In 2025, certain areas became particularly challenging to enter and do business in. To help you avoid these challenges, let's look at which areas to avoid.

Main /

Business news /

What kind of business definitely doesn't need to be opened in Dubai in 2025?

17.03.2025

Coffee Shops and Cafes

The UAE is becoming an international business hub, which has made the region's business environment highly competitive. Starting a business in Dubai requires a financial cushion and a deep understanding of the market and its niches.In 2025, certain areas became particularly challenging to enter and do business in. To help you avoid these challenges, let's look at which areas to avoid.

Starting a business in Dubai: competition is growing and the market is becoming more demanding

Every year, Dubai's market is becoming more saturated. Competition in various industries is intensifying, and consumers are becoming more discerning. This creates new challenges for entrepreneurs, especially those looking to break into already filled niches.
While entering the IT sector, online commerce, logistics and manufacturing business can be helped by a competent Dubai business consultant, entering the following areas can pose significant challenges even for him.

Opening a medical business in Dubai is not an easy task. Regulation in this field is very strict. It takes a lot of time and effort to obtain the necessary licenses. A lot of investments will be required: renting premises in prestigious areas, expensive repairs in accordance with high standards, licenses and verified personnel - all this requires significant financial resources.
In addition, competition in the premium segment of medical services is simply enormous. There are many clinics and medical facilities in the market that offer a wide range of services. It will be difficult for new entrants to attract clients if they do not have a unique offering or significant advantages over established players.

Medical business

Financial Services

If you are planning to open a financial company in Dubai, register an investment fund or provide a payment service, be prepared for enormous costs. Obtaining a license to conduct financial activities requires significant authorized capital - hundreds of thousands of dollars. In addition, it is necessary to ensure strict compliance, which implies a mandatory office and constant inspections by regulators.
Without work experience, it is virtually impossible to do business in the financial sector in Dubai. Even if you have the necessary capital, a lack of knowledge and skills can lead to serious problems and losses. As a result, many aspiring entrepreneurs find it difficult to start and run a business in this sector.

Coffee shops are an epidemic in Dubai: they are everywhere. However, opening one and not going bankrupt is a more difficult task than it seems at first glance. Top locations in malls or on popular streets can cost as much as $100,000 a year, making rent extremely expensive.

Importing many ingredients is difficult and expensive, and local production may not be of the right quality. Competition is also a major hurdle: even the coolest coffee shops may not be able to withstand the financial strain and may close after a year or two. Therefore, if you are thinking about opening a coffee shop, carefully analyze the market and think about how you can stand out from the many similar offerings.

Interested in relocating and starting a business in Dubai?

We are here to help! We offer services in niche analysis, choosing the right corporate structure, licensing and market entry strategy. Write to us and we will find the best way to make your company incorporation and start-up in Dubai risk free and cost effective!