E-commerce, fashion, beauty, and food services thrive from home with low overhead
Dubai: What began as small side hustles is now a nationwide movement. Across the UAE, home-based businesses have grown beyond hobbies — they are becoming engines of entrepreneurship, driven by social media, government support, and a culture that celebrates local talent.
The surge in home businesses is reflected in the numbers. In 2024, the UAE issued nearly 200,000 new economic licenses — the highest on record — bringing the total number of active commercial licenses to over 1.5 million, according to the Ministry of Economy.
A large portion of these licenses represent microbusinesses launched from kitchens, living rooms, and laptops. Popular sectors include e-commerce, fashion, beauty, and food services, many of which operate efficiently from home with minimal overhead.
Abu Dhabi saw a 16% rise in new licenses and a 27% increase in renewals, while Sharjah, Ajman, and Ras Al Khaimah also reported double-digit growth. Dubai issued nearly 19,000 licenses in Q1 2025, with a 32% jump in company registrations at Dubai International Financial Centre. This growth mirrors a larger shift in consumer behaviour, particularly among young Emiratis who are eager to support homegrown businesses.
Licensing may make home businesses legal — but social media makes them visible. Platforms like Instagram and TikTok have become the lifeblood of these ventures. For many, a phone screen has replaced the storefront.
“Using social media completely changed my business. It literally quadrupled my sales,” said Nasim Askari, founder of Askary Line, a made-to-order abaya brand launched in October 2025. With just over 1,000 followers on Instagram, Nasim has successfully grown her brand and connected with new customers. She credits TikTok for expanding her reach and boosting brand awareness.
For many startups, social media has also reduced financial barriers. “Social media was the main reason we could start without big costs,” said Hamdan and Zayed Al Mutawa, founders of Two Blends, a matcha-on-the-go business in Abu Dhabi.
“Instead of paying for a shop or advertising with influencers, we grew on Instagram and TikTok by posting our drinks, talking with followers, and letting customers share our posts.”
Other entrepreneurs highlight how these platforms foster direct engagement. “Using these platforms allowed us to reach people directly, share our story, and create a real connection around something as simple as hot chocolate,” said Hessa Alsayegh, founder of On the Way.
“One of the connections that really stood out was being invited to join local exhibitions... Food bloggers also shared about us, which gave us a great boost and helped us build new connections along the way.”
With the UAE’s e-commerce market projected to grow at 8.57% annually until 2027, according to Statista, the outlook for home businesses is strong. Government initiatives such as the Tajer Abu Dhabi license, Dubai SME programs, and the Khalifa Fund for Enterprise Development are making it easier than ever to start and scale from home.
These aren’t just policies — for many founders, they are a lifeline. The team behind Theyas.ae, a homegrown sunglasses brand, is already exploring expansion with the support of the Khalifa Fund.
Even in the competitive food and beverage space, small businesses are thriving. Aisu, a Dubai-based gelato brand run by Khaled and Sara Almarzooqi, credits their success to combining digital tools with regulatory support.
“Being social media-based allowed us to launch with minimal expenses, as we didn’t need a physical store. Instagram and TikTok let us connect with customers directly, and the UAE’s home-based food license and supportive community made it easier to start successfully,” they said.
For many UAE founders, the goal goes beyond profits. It's about proving that with creativity, commitment, and a smartphone, a business born at home can thrive — and lead — in one of the world’s most dynamic entrepreneurial landscapes.
At the heart of this trend lies more than convenience — there's a strong sense of national pride. A 2022 study by the Journal of Enterprising Communities found that over 80% of UAE consumers view home-based SME products as high quality, with many seeing their support as a way to reinforce Emirati identity.
Entrepreneurs say this support is vital. The On the Way team credits reposts and community shout-outs for their early traction. For Bishtheritage, a clothing brand by Khalid and Maryam Alghaffari, the impact goes deeper.
“The support we’ve received here is more than just business. When a community uplifts local brands, it protects culture, fuels creativity, and inspires the next generation to dream bigger,” said Khalid Alghaffari.
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