In 2019, Dubai legalized e-cigarettes, turning the industry into a profitable business. By 2023, the e-cigarette market generated $59.38 million in revenue, with an expected annual growth rate of 9.41% until 2027. E-cigarettes, often used as an alternative to smoking or as a method to quit, have seen rising demand. Many new companies are now seeking e-cigarette licenses to join this growing market.

To support this, the Dubai government, through the Dubai Economic Development (DED), introduced the “Electronic Cigarette & Accessory Trade” category under the “Tobacco and Smoking Accessories Trade” class.

If you want to enter the e-cigarette market in Dubai, it’s important to understand the legal requirements and processes. Here’s a simple guide on how to get your e-cigarette license and start your business.

What is E-Cigarette License Registration?

To start selling e-cigarettes, you need an E-Cigarette and Accessory Trade License. The Emirates Authority for Standardization and Metrology (ESMA) issues these licenses. Once approved by ESMA, you can sell your products across the UAE without needing additional approvals.

Getting a Commercial Trading License

The first step is to apply for a commercial trading license, either from the Department of Economic Development (DED) or the Dubai Health Authority (DHA) for businesses on the mainland. If you plan to start your business in a free zone, you will need to apply through the respective free zone authority.

Tycoon Documents can assist in both mainland and free zone applications, making the process smoother.

Getting ESMA Certification

ESMA certification is essential for legalizing your e-cigarette business. It ensures that your products meet the UAE’s safety and quality standards. Operating without ESMA approval can result in legal penalties and risks to consumer health.

Steps to Get an E-Cigarette License in Dubai

1. Certificate of Free Sales: Obtain this certificate from health authorities in your product’s country of origin to show compliance with international safety standards.
2. Dubai Municipality License: Before applying to ESMA, you need a permit from Dubai Municipality to legalize your business.
3. E-Form Submission: After obtaining the required certificates and licenses, submit an e-form to ESMA, providing product and business details.
4. Document Preparation: Gather important documents like:
   • Certificate of Free Sales
   • Trade License
   • Product Analysis Report
   • Laboratory research report
   • Company registration certificate
5. Receive ESMA Certificate: ESMA will prepare a report and, once complete, issue your certification.

Requirements for ESMA Registration

• A valid commercial license
• Trademark registration in the UAE
• ISO 9001 certification for manufacturing
• Product test reports from an ISO 17025-certified lab

Starting Costs for a Vape Business in Dubai

Initial costs can range from AED 15,000 to AED 25,000, covering registration fees, licenses, certifications, and other business expenses. While the costs may seem high, legal compliance will boost your business’s reputation and long-term success.

Documents Needed for an E-Cigarette Business

• Trade License
• ESMA Certification
• Certificate of Free Sales
• Product Information
• Passport copies of owners/partners
• Lease agreement for business premises
• No Objection Certificate (NOC) from the landlord

Benefits of Starting a Vape Business in Dubai

• Growing Market: There’s a rising demand for e-cigarettes due to smoking cessation efforts.
• 100% Ownership: Foreigners can own 100% of their business in Dubai.
• Tax Benefits: Dubai offers low taxes, with corporate tax at 9% and personal income tax at 0%.

Conclusion

The e-cigarette market in Dubai offers great potential, but it requires legal compliance to succeed. An ESMA license ensures that your products meet safety standards, setting your business up for success.

Tycoon Documents can help you through the legal process, obtaining both ESMA and trade licenses, and managing compliance with Dubai authorities.