Introduction
The vaping industry is growing rapidly in the UAE, fueled by increasing demand and regulatory support. However, launching a vape shop requires proper licensing and full compliance with government regulations. In this guide, we’ll explain exactly how to get a vape shop license in UAE—from choosing the right jurisdiction to legal documentation, costs, and approval timelines. Let’s dive into the legal roadmap that ensures your vape business runs smoothly in the Emirates.
Why Open a Vape Shop in the UAE?
The UAE is becoming a hub for modern lifestyle products, including vape and e-cigarette offerings. The government legalized the sale of e-cigarettes in 2019 under strict regulations, making it possible for investors to tap into this high-demand niche.
Benefits include:
- Tax-friendly business environment
- Growing consumer base of adult vapers
- High margins on products
- Legal framework that supports e-commerce and retail
- Access to international supply chains via Dubai ports
Now, let’s walk through the steps required to legally start a vape shop in the UAE.
Legal Framework for Vape Sales in UAE
The UAE allows the sale of vaping devices, e-liquids, and accessories under guidelines set by:
- Emirates Authority for Standardization and Metrology (ESMA)
- Ministry of Health and Prevention (MOHAP)
- UAE Federal Tobacco Control Law
These bodies regulate how vaping products are imported, sold, marketed, and taxed. To legally sell vape products, businesses must:
- Acquire an official vape shop license in UAE
- Comply with ESMA product standards
- Sell only to adults above the legal age (18+)
- Ensure proper labeling and safety packaging
Types of Vape Shop Business Structures
Before applying for a license, you need to choose a legal business structure. Your choice affects taxation, ownership, and setup time.
Mainland Company
This allows you to open a vape store anywhere in the UAE (e.g., Dubai, Abu Dhabi). You’ll need to register with the Department of Economic Development (DED).
Pros:
- Sell directly to local market
- No restriction on business activities
- Access to government contracts
Cons:
- May require a UAE national sponsor
Free Zone Company
Setting up in a free zone offers 100% foreign ownership and simplified processes.
Best free zones for vape businesses include:
- Dubai Multi Commodities Centre (DMCC)
- Dubai Airport Freezone (DAFZA)
- Sharjah Media City (Shams)
Pros:
- Fast-tracked setup
- Tax exemptions
- No currency restrictions
Cons:
- Cannot sell directly in UAE mainland without a distributor
Step-by-Step: How to Get a Vape Shop License in UAE
Let’s go through the full procedure to obtain your vape business license.
Choose Business Activity Code
Under UAE regulations, vape shops fall under specific activity codes such as:
- Electronic cigarette trading
- Smoking accessories retail
- E-liquid import/export
Verify the correct code with DED or the chosen free zone authority.
Select a Jurisdiction
Decide whether you want to set up in:
- Mainland UAE (for direct access to the local market)
- Free Zone (for tax benefits and 100% ownership)
Each option has different licensing authorities and requirements.
Reserve Your Trade Name
Pick a unique trade name aligned with UAE naming regulations:
- Avoid religious or political references
- Use real words (no abbreviations)
- Match the business activity
Apply through the DED or the free zone portal.
Submit License Application
Prepare and submit your vape shop license application with the following documents:
- Passport copies of all shareholders
- Visa and Emirates ID (if resident)
- Business plan
- Trade name reservation certificate
- Lease agreement (Ejari for mainland setups)
In free zones, applications are typically processed within 5–10 business days.
ESMA Product Registration
To legally sell vape products, each item must be approved by ESMA.
This includes:
- Vape mods and pens
- E-liquids (nicotine and nicotine-free)
- Batteries and chargers
Submit:
- Product lab test reports
- Ingredient breakdown (for liquids)
- Packaging and labeling info
- Manufacturer certifications
Once approved, you’ll receive a Certificate of Conformity.
Get Local Approvals (If Required)
In some emirates, you may need further approvals:
- Municipality clearance
- Civil Defense inspection (for fire safety)
- Signage permits
These are especially important for physical retail stores.
Open a Corporate Bank Account
After license issuance, open a business bank account in the UAE. Banks may request:
- Trade license
- Shareholder documents
- Business plan
- Proof of office space
Options include Emirates NBD, Mashreq, and ADIB.
Launch Operations
Once licensed and approved, you can officially:
- Import vape products
- Set up your shop (physical or online)
- Start advertising (within UAE ad guidelines)
- Hire staff with appropriate visas
Cost of a Vape Shop License in UAE
The cost of a vape shop license varies by location and business structure. Here’s a general breakdown:
- Trade license: AED 10,000 – 25,000
- Free zone setup: AED 12,000 – 18,000
- ESMA product approval: AED 2,000 – 5,000 per product
- Office rental (Ejari): AED 15,000 – 50,000 annually
- Insurance & other overheads: AED 3,000+
Note: Costs may differ depending on emirate, number of visas, and scale of operations.
Compliance Rules and Advertising Restrictions
Running a vape shop in the UAE comes with compliance responsibilities:
- Do not sell to individuals under 18
- Avoid health claims in advertising
- Ensure product labeling complies with Arabic/English rules
- Do not advertise near schools or mosques
- Track and retain records for product origin and sales
Violating these rules may result in fines, license suspension, or business closure.
Selling Vape Products Online in the UAE
The UAE permits online sales of vape products—but you need additional approvals:
- E-commerce license (Mainland or Free Zone)
- ESMA certification for listed products
- Payment gateway integration with licensed bank account
- Secure logistics provider with adult signature confirmation
Ensure your website includes legal disclaimers and age verification popups.
Frequently Asked Questions (FAQs)
How much does it cost to open a vape shop in the UAE?
Costs typically range from AED 30,000 to AED 70,000 depending on setup type, location, and ESMA certifications. Free zones offer cost-effective packages for startups.
Is vaping legal in Dubai?
Yes. As of April 2019, the UAE legalized the sale of e-cigarettes and vaping products under strict government regulations via ESMA.
Can I sell vape products online in the UAE?
Yes, but you must obtain an e-commerce license, ensure ESMA-approved products, and follow online age-restriction protocols.
What is ESMA and why is it important?
ESMA (Emirates Authority for Standardization and Metrology) sets national safety and quality standards. All vape products must be ESMA-approved to be sold legally.
Do I need a local partner for a vape shop in UAE?
Not necessarily. In free zones, 100% foreign ownership is allowed. For mainland businesses, recent reforms also allow 100% foreign ownership in many sectors, including retail.
Ready to Launch Your Vape Business in the UAE?
Getting a vape shop license UAE is a strategic process that involves clear steps—from business registration to ESMA product approvals. While the market is competitive, the rewards can be significant for those who follow the rules and deliver quality products. Whether you’re planning to open a retail store or online vape shop, UAE offers a robust infrastructure, growing market, and supportive regulatory environment.
