How to Open a Grocery Store in Abu Dhabi: Business

Open a Baqala in Abu Dhabi

Have you ever dreamt of owning a Baqala (small grocery store) in Abu Dhabi? If yes, you must spend some time with us. Indeed, you can earn immense profit by opening a small grocery in Abu Dhabi. But you should follow the right path to start your Baqala in this Emirate. Here, we will explain the complete process to begin your Baqala in Abu Dhabi. Moreover, we will discuss some essential details about Baqala in this article. 

Grocery - Overview (بقالة - نظرة عامة)

Baqala is an Arabic term meaning “what comes from the ground” for grocery stores selling fruits, vegetables, and more. We are sure that you might be wondering if you are here to know the process to initiate a Baqala in Abu Dhabi. But we understand some of you might be struggling to understand the complete meaning of Baqala. So, before diving into the exact process of beginning the process of starting Baqala in Abu Dhabi, we recommend that you know the meaning of Baqala in this article.  The Abu Dhabi Food Control Authority (FDCA) launched Project Baqala in 2013, intending to give high-quality food more affordably and broadly. It is in charge of all the grocery stores in Abu Dhabi. The development ensured the grocery store's sustainability, safety, quality, health, and health. 

If you want to operate your grocery store under this program, you should use the same name as Baqala. In addition, you should highlight the Unique Selling Point (USP) in a smaller font with your name without compromising quality.  Every Baqala business, including yours, must uphold numerous requirements like facilities, proper security measures, and more. The primary goal of implementing such standards is to remove any health risks to employees and customers that may result from a store's lack of cleanliness and hygiene.  

What Are Key Insights for Opening a Baqala in Abu Dhabi 

You need a proper license, an invoice, and to maintain compliance with the local price stands to open a Baqala in Abu Dhabi. These factors will provide a smooth establishment of your grocery store. You can operate a long-term business in Abu Dhabi with the proper regulations of the government. 

Choose The Right Business Structure and Sponsorship 

You have to choose the correct legal structure for your business to set up the Baqala. The investors can register as a sole proprietorship civil company, or a Limited Liability Company (LLC). Every option carries specific requirements such as ownership rights, liability, and documentation. 

LLC is the most practical structure for the expatriates. However, local regulations require a UAE national as a sponsor or a partner. An Emirati partner not only fulfills the ownership regulations but also provides strategic advantages in navigating the local business. 

Commercial License and Inventory Approval 

After selecting your business structure, you have to get a Commercial License from the Abu Dhabi Department of Economic Development (DED). You also have to submit an inventory list of products you want to sell. This list is reviewed and approved by the authorities to make sure that the items comply with food safety standards. If you want to make any change in stock in the future, you have to report to the DED for approval again. 

Municipality Permits and Food Safety Compliance 

Running a Baqala is not limited only to a trade license; you have to follow the strict municipality regulations. You also need additional permits from the Abu Dhabi Municipality or Abu Dhabi Agriculture and Food Safety Authority (ADAFSA), according to your product range. For example:

1. If you want to sell perishable items such as dairy, frozen goods, or fresh produce, then you have to maintain proper storage standards set by the municipality. 
2. To sell products like energy drinks or supplements, you need to get a special permit or health clearances. 
3. Your staff should have food-handling certifications to maintain public safety and hygiene. 

Reasons to Begin a Baqala in Abu Dhabi

We are sure some of you might still need clarification about why you should initiate your Baqala in Abu Dhabi. However, there are numerous reasons to begin your Baqala in this Emirate. But the following are the two essential reasons for starting Baqala in Abu Dhabi:  

1. Minimal Starting Expense

The cost of setting up a Baqala in Abu Dhabi is comparatively lower than other types of businesses. However, you must spend more time and effort on the construction of your Baqala building.   

2. Demand never falls

Since the population of Abu Dhabi is simultaneously increasing and the need for grocery items is not decreasing, your Baqala store will not experience less demand in this region. In addition, the Baqala market will continuously increase as it is located near or close to the residential area in the region.  Requirements for opening a Baqala store in the Abu Dhabi As per ADFCA, you must fulfil a couple of requirements to open a Baqala store in Abu Dhabi. The following are the requirements that you must meet to begin this store in this region:

• Initially, you must comprehend the region's demand and supply for the products. As a Baqala owner, you will be responsible for selling groceries and other home products. Therefore, you must be familiar with the geography and local culture because these factors will influence the demand for your goods and services. 

• You must also adhere to the safety, pest, and environmental management rules. In addition, you must safeguard your Baqala store from harsh weather conditions like rain, storms, and more. 

• Your Baqala store must be present and separated from other stores by at least 5500 mm.

• You should ensure that your storefront has a 10-20 mm thick aluminium frame for the protection of the glass. Furthermore, you should use sealant, rubber, and gaskets for air and waterproofing to keep your store in good condition.

• You must use plastic or polyvinyl chloride to cover up any imperfections or objects sitting on the top of your wall.

• All outdoor AC compressors that are lower than 1200mm from the ground by a powered-coated, vented aluminium cage. 

• You should avoid visually disruptive posters and stickers. Moreover, you should post the Baqala push and pull sticker and opening times at the door of your store.

• You must review a deep list of every item on sale at your store to get clearance from the DED. In addition, you should give a new list to the DED for initial approval to include any new item in your inventory. 

What are the steps to start your Baqala store in Abu Dhabi?

To start your Baqala store in Abu Dhabi, you must follow the following steps:  

1. Branding and logo

A grocery store may or may not be part of the Baqala scheme. Independent retailers have to use a modified version of the Baqala logo. These stores are frequently run by sole proprietors or partners, with at least one Emirati partner mandatory by law.  

2. Geographical location

As Baqala is a real business, you should find an appropriate location for your Baqala in Abu Dhabi. Remember, you should choose a location that meets the requirements of ADFCA mentioned above.  

3. DED Authorisation

After choosing the appropriate location to initiate a Baqala in Abu Dhabi, you should acquire permission from the Department of Economic Development (DED) for which you must meet certain criteria and requirements. If you are considering starting a different type of facility, you can also learn how to setup a Special Needs Development Center in the UAE.

4. Invoicing software

Next, you must arrange an invoicing mechanism for issuing invoicing as the UAE has mandated to give physical invoices to your customers for any product purchase from your store.  

5. Price tag

Now, you must price all your products in the affordable range because the country has also mandated this requirement.  

6. Nomenclature 

Next, you must match the trade name on your license and sign. Plus, you must incorporate Baqala in your trade name in any way.  

7. Trademark 

Lastly, you must register your trademark with the UAE government to sell your products in Abu Dhabi. If you are a GCC national and also need to register your company as a sole establishment or own 100% shares in the UAE mainland, make sure to review the specific guidelines.

Market Insights: Why Baqala is a Strong Investment in Abu Dhabi 

The grocery retail market in the UAE is expanding rapidly. The growth is fueled by the increasing population and demand for convenience shopping. That is the main reason that the government led initiatives like the Baqala program. 

By opening a Baqala, the investors can make a business in a growing sector. You can cater to the demand of both residents and expatriates. Additionally, the regulatory framework ensures standardization and quality, which improves the trust of consumers. 

How can Flyingcolour Business Setup help you?

To start a Baqala in Abu Dhabi, the government has set several rules and regulations that might be difficult to follow for you. can be your friend to help you meet all standards and start your Baqala in Abu Dhabi. In addition, we can help you with Licensing for Baqala in Abu Dhabi. To learn more about starting a Baqala in Abu Dhabi, book a free consultation with one of the Flyingcolour team advisors. Please note that this article was published on  23/05/2024, by the federal policies and updates at the time of writing. For the latest info, please talk to our consultant.

Frequently Asked Questions (FAQs) About How To Open A Baqala In Abu Dhabi

1. What is Baqala?

A Baqala is a small grocery store in Abu Dhabi that operates under the official Baqala initiative introduced by ADFCA. These stores should follow the standards of branding, hygiene, and operations. 

2. Do I need a local sponsor to open a Baqala?

Yes, in most cases, the expatriate needs a local Emirati partner or sponsor if they want to form an LLC. The sponsor plays an important role in legal compliance. 

3. What permits are required to open Baqala?

You need a Commercial license from DED, Municipality Permits, Food Safety Approvals, and hygiene certifications. 

4. What is the investment required to open a Baqala in Abu Dhabi?

The costs vary depending on the business structure, location, and scale of operations. The cost includes the trade license fees, sponsorship charges, municipality approvals, store setup, and inventory. You can contact Flyingcolour® to get an actual estimation of the cost. 

5. What are the advantages of the Baqala program?

The program ensures that standardised branding, strict hygiene, and sustainability practices are maintained. 

To learn more about starting a Baqala in Abu Dhabi, book a free consultation with one of the Flyingcolour team advisors. Please note that this article was published on  23/05/2024 by the federal policies and updates at the time of writing. For the latest info please talk to our consultant.