Buying a retail store in Dubai.
Retail in Dubai lives and dies by location and lease. A store with three years remaining on a below-market lease in a strong mall is worth considerably more than the same business in a comparable location with a lease expiring next year. The stock is usually the smallest part of the value and the part buyers focus on most.
Sector-specific due diligence
Lease term remaining, rent versus current market, and landlord consent to assignment. Stock valuation at cost versus retail, and how much is slow-moving. Supplier agreements and whether exclusive distribution rights transfer. Footfall data from the mall, not from the seller. Fit-out and whether it meets current mall standards.
The trap in this sector
Stock valued at retail price rather than cost. It routinely inflates the asking price by twenty per cent or more.
Timeline and cost
| Item | Detail |
|---|---|
| Typical price range | AED 200,000 – 4,000,000 |
| Valuation basis | 1.5–3× annual profit |
| Search and initial review | 2–8 weeks |
| Due diligence | 3–6 weeks |
| Negotiation and documentation | 2–4 weeks |
| Licence transfer or reissue | 2–6 weeks |
| Total, realistic | 2–6 months |
What I do
- Establish what you are actually looking for, in economic terms rather than sector labels
- Source opportunities, including businesses whose owners have not formally listed
- Verify the counterparty before any substantive discussion
- Coordinate due diligence across corporate, financial, operational and compliance workstreams
- Establish early whether the licence transfers, and structure the deal around the answer
- Manage the transaction to completion: documentation, licence, banking, visas, handover
Retainer from AED 15,000/month
Credited against the success fee. Success fee 10% on transactions up to AED 2M (minimum AED 75,000), Double Lehman scale above. Legal, audit and government costs are separate.
Common questions
How much does a retail store cost in Dubai?
Typically AED 200,000 – 4,000,000, valued at around 1.5–3× annual profit. The range is wide because the same revenue is worth very different amounts depending on how transferable it is — contracted, recurring income commands a materially higher multiple than income tied to the departing owner.
What should I check before buying a retail store?
Lease term remaining, rent versus current market, and landlord consent to assignment. Stock valuation at cost versus retail, and how much is slow-moving. Supplier agreements and whether exclusive distribution rights transfer. Footfall data from the mall, not from the seller. Fit-out and whether it meets current mall standards.
Does the trade licence transfer with the business?
Not always. Some free zones permit direct share transfer; others require the licence to be reissued or a new entity formed and assets migrated. The answer depends on the zone, the activity and sometimes the specific case — establish it before terms are agreed, not after.
What happens to the staff visas?
Employee residency is sponsored by the company, so a share transfer usually preserves it while a new-entity structure does not — in which case every visa is reissued at cost and on the immigration authority's timeline. For a business with staff this is a material line item sellers rarely raise.
How long does the purchase take?
Two to six months from serious interest to completion. Due diligence takes three to six weeks if the seller's records are in order, considerably longer if not. Licence transfer, banking and visa reassignment add four to eight weeks after commercial terms are agreed.
What is the most common trap in this sector?
Stock valued at retail price rather than cost. It routinely inflates the asking price by twenty per cent or more.
Reviewed by Denis Chernikov, Private Client Advisor, nine years in the UAE private client sector.
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