Salon Setup Cost​: Complete Guide

Modern Dubai salon interior with styling chairs and mirrors. Visual representation of salon setup cost and investment guide by Quickplus.

The salon setup cost in Dubai varies significantly based on your vision and location, with budget-friendly setups starting around AED 200,000, mid-range salons costing AED 400,000–800,000, and luxury establishments potentially requiring over AED 1 million, according to Quickplus Business Consultants. Key expenses include business licensing (around AED 14,500 annually), location and rent (AED 50,000-200,000 annually), interior fit-out and furnishings (AED 100,000-500,000), equipment and supplies (AED 50,000-200,000), staffing, and marketing.

Breakdown of Salon Setup Costs:

1. Business License: 

The mandatory salon license in Dubai can cost around AED 14,500 per year, and specific fees for trade name reservation, initial approval, commercial license, and professional license add to this.

2. Location and Rent:

Securing a suitable location involves rent or purchase expenses, security deposits, and potential fit-out costs, with annual rent ranging from AED 50,000 to AED 200,000 in Dubai.

3.Interior Fit-Out and Furnishings:

The cost of designing and furnishing the salon, including chairs, mirrors, lighting, and decorative elements, can range from AED 100,000 to AED 500,000, depending on the size and desired luxury level.

4.Equipment and Supplies:

This includes essential items like hair styling chairs, wash basins, manicure and pedicure stations, skincare equipment, and various beauty supplies, with initial costs from AED 50,000 to AED 200,000.

5. Staffing:

Salaries for stylists, beauticians, and support staff can vary significantly, and you should budget for at least AED 10,000 to AED 20,000 per month for a small team, plus potential visa and work permit costs.

6. Marketing and Advertising:

Initial investment for effective marketing strategies, both online and offline, can range from AED 5,000 to AED 50,000.

7. Insurance and Permits:

Additional costs for insurance and any specific permits related to the services offered are also necessary.

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    Legal Requirements for Salon Setup in Dubai

    To legally operate a beauty salon in Dubai, you must comply with the following regulations:

    1. Trade License:

    Issued by the Department of Economy and Tourism (DED).

    2. Approvals from Dubai Municipality:

    Includes clearance for health and safety, ventilation systems, drainage, and hygiene standards.

    3. Location Approval:

    The salon must meet size and layout requirements set by authorities (minimum area typically starts from 3m x 4m for main services).

    4. Professional Staff Licenses:

    Employees must hold certified qualifications and work permits.

    5. Additional Permits: 

    Depending on services like tattooing or laser treatments, specific DHA or health approvals may apply.

    These legal elements contribute to the total salon setup cost and should be factored into early planning.

    Ongoing Salon Operational Costs

    Beyond the initial salon setup cost, ongoing monthly and annual expenses are crucial for business continuity:

    1. Salaries: AED3000-8000 per month, depending on team size.
    2. Utilities: Electricity, water, and internet can total AED 2,000–7,000 monthly.
    3. Product Restocking: AED 3,000–10,000 per month on consumables and beauty products.
    4. Maintenance & Cleaning: AED 1,000–3,000 monthly for regular upkeep.
    5. Renewals & Insurance: Annual trade license renewal (~AED 14500-18500) and insurance (starting AED 1,000/year).

    Proper budgeting ensures that your salon remains profitable beyond the launch phase.

    Tips to Minimize Salon Setup Cost

    Reducing the initial investment without compromising quality is possible with these smart strategies:

    • Choose a smaller salon space to reduce rent and fit-out costs.
    • Buy used or refurbished salon equipment from reputable suppliers.
    • Outsource digital marketing rather than hiring full-time.
    • Start with essential services only and expand as the business grows.
    • Partner with product brands to lower upfront supply costs.

    These cost-saving tips can bring your salon setup cost closer to the lower range while maintaining compliance and quality.

    Conclusion 

    Understanding the full salon setup cost in Dubai helps entrepreneurs budget wisely and avoid hidden expenses. From licensing and location to equipment and marketing, each cost component plays a critical role in launching a successful salon business. Quickplus Business Consultants can assist you with every step, ensuring your salon is legally compliant, financially viable, and ready to thrive in Dubai’s competitive beauty market.

    How much does it cost to open a beauty salon​?

    According to Quickplus Business Consultants, opening a beauty salon in Dubai can cost anywhere from AED 80,000 to AED 300,000 or more, depending on factors like location, size, and the level of luxury offered. This includes the cost of a trade license, rent, interior design, equipment, staff salaries, and marketing.

    How profitable is a salon?

    A salon's profitability can vary, but on average, beauty salons see a profit margin around 8.2%. However, this figure can fluctuate significantly, ranging from 2% to 17% depending on various factors, particularly how well the salon is managed. Salons in high-end areas may have higher revenue but also higher operating costs.

    How to start a salon business in the UAE?

    To start a salon business in the UAE, you need to choose between a mainland or free zone setup, select a business name, obtain initial approval, secure a location, acquire necessary licenses and permits, hire qualified staff, and market your salon. The process involves navigating government regulations, including approvals from the Department of Economic Development (DED) and Dubai Municipality. Steps to Open a Salon in the UAE:
    • Choose a Business Jurisdiction
    • Select a Trade Name
    • Obtain Initial Approval
    • Secure Trade License
    • Find a Location
    • Register Your Business
    • Get Necessary Approvals
    • Hire Staff
    • Market Your Salon
    • Maintain Hygiene Standards
    • Comply with regulations
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