Setting Up a Cold Storage Business in Dubai

The UAE has a very hot climate with desert air. The extreme heat makes it necessary for every foods & beverage company to store their goods at maxim temperature of +25 °C, to preserve the freshness and quality of food products and no side effects on the health of end user. The way we consume food has changed a lot nowadays. Keeping food in the consumable state for longer periods has become possible after refrigeration technology was introduced. Food & Beverage companies need industrial cold storage solution to maintain the freshness and quality of the food products to achieve better shelf life.

What is a Cold storage Business? Let’s understand the concept of Cold Storage and what all factors come under it:

All food products have distinctive cold storage techniques. To install correct storage facilities, the characteristics of the food product need to be kept in mind. The cooling environment should be adequate enough to make sure that it remains fresh, be stored for long durations, and for minimum product loss and energy consumption. Cold storages are the reason behind delivering fresh and high-quality food products to consumers. The storing of the products in cold storage between their production and consumption is highly important. Cold stores are large rooms, which are designed for the storage of food where climatic values, such as temperature and humidity are taken under control.

Types of Cold Storage:

• Potato and Onion cold storage Room
• Red Meat cold storage Room
• Fish and Seafood cold storage Room
• Poultry cold storage Room
• Bakery Cold storage Room
• Milk and Milk Products cold storage Room
• Citrus Cold storage Room
• Fruits cold storage Room

Special Cooling Applications:

• Banana Ripening Room
• Blast Freezer Facility
• Atmosphere Controlled cold storage Room
• Chiller water cooling system
• Ice production Facilities
• Potato and Onion ventilation system
• Hydro cooler
• Cryogenic Cooling
• Spiral Freezing

Activity in Dubai economic department for Cold Storage business:

Cold Storage Activity Group: Transport, shipping and storage License Type: Commercial Activity Description: Includes firms offering cold storage warehousing to store foodstuff or other perishables or materials damageable by heat. Note: External approval from Dubai Municipality (Food control Department) Important Notes:

1. Its commercial license where the UAE national will have 51% share and the expat will have 49%
2. Dubai Economic Department (DED) and Dubai Municipality approval is required for setting the license in Dubai
3. The total Governmental cost of the commercial license is AED 16,561 Approx + External approval fees from Dubai Municipality
4. Minimum area required to setup the storage is decided by the Municipality department; based on the business plan

This blog is written by Ms. Nirmala, Business Advisor at Flyingcolour Business Setup, VAT and Accounting Services, Dubai. As Flyingcolour, we have assisted our clients to set-up a cold storage business in Dubai. We can assist the client by liaising with DED and Dubai Municipality.