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#Business ID: 31869

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Massage/SPA License in Dubai For Sale

Business Location: Dubai, United Arab Emirates

Asking Price: BUSINESS SOLD Revenue: AED 1,800,000 Cash Flow: AED 1,300,000

Business Summary

Dear Investor,

We are offing a Rare Gents Massage & Oriental Bath License for Sale in Dubai’s Market. I am the owner of this license. I’m neither a broker nor a mediator.

This type of business activity is extremely rare. New licenses of such activity cannot be issued anymore (previously granted to "Sheikhs in Dubai") since 2012, rather, it gets transferred (sold) from one person to another.

There are only a few of these in the market. Not more than 8 or 9. This license entitles its owner to open freely and operate the Gents massage business activity legally in Dubai, anywhere he/she wishes with no restrictions, and most importantly without worrying about getting hefty monthly fines and facing forced business closure by authorities, resulting in total loss of investment.

All other Spas in Dubai operate under different "men care" business activity names, they perform Gents massage illegally until they get shutdown by authorities, just like what’s happening now in Dubai, with their capital going down the drain, in no time.

The spa business is a big industry in this part of the world and everyone wants to have a part of this pie.

Status of the License:

The license has been incorporated in 2012 and it had gotten renewed annually ever since. The license is still valid until June 2022 and it can be renewed online every year. The company that owns the license has zero debts, zero liabilities. There is only one investor visa issued on this license (mine). It has a clean company record and a clean Credit Report of Al Etihad Federal Bureau. A local sponsor is mandatory in the license and is present in it at the moment, who charges DHS 6000 annually with zero interference and so much help.

Transfer Process:

The new investor acquiring this license can have his name transferred into the license in Dubai Economic Development Department. The process takes no more than a couple of hours. After that, the investor can obtain his Investor visa (3 years), Emirates ID, …etc, and can start his/her business project with ease.

Setting up a new Spa takes 2 to 4 months at most. A strong social marketing plan and a proper European therapy team is all what you need to get you on the top of the wave.

It is important to note that the investor can use this one license to open as many branches as his/her capital allows. It is not restricted for one spa!

Hints for Operation:

To brief you more about the financial return behind this activity. A one hour Gents massage session, in class “A” Spas, is charged between Dhs 400 to Dhs 500 and sometimes more. To start a SPA business, with a top-notch interior, and an upscale location like in Business Bay, Downtown Dubai, Dubai marina, …etc., that requires an investment of around AED 450,000 to AED 600,000. To charge these rates per hour, you need to hire 5 or 6 European Therapists, each performing 2 or 3 sessions a day on weekdays, and 5 to 6 sessions on weekends, then that will leave you with sales of DHs 150,000 to Dhs 200,000 a month.

Running Costs:

In this business, half of the running cost comes from the rent of the premises. To get a 1500 sq ft shop that fits five massage rooms, an Oriental Bath chamber, and a reception with other amenities, rent could be around AED 240,000 a year.

Other projected costs for this business are as follows:

Cost Dhs/Month
Rent 20,000
DEWA 2,000
Telecom 1,500
Laundry 1,000
Oils/essentials 1,500
Superior Marketing 10,000
Sponsor 500
License Renewal 1,500
Miscellaneous 2,000
Total Monthly: 40,000 Dhs

Return on Investment:

Revenue: is around Dhs 1,800,000 a year
Cost: is around Dhs 480,000 a year
Net Profit: is around Dhs 1,320,000 a year (+-), and that is for one spa only!

So you can get your total investment back in a year’s time.

Price of License:

The price of this rare license is Dhs 550,000. We welcome discussions only with serious investors. We only accept a certified Manager’s cheque. Cash payment is strictly not acceptable.

Please contact us for more details.

Property Details

Years Established:

2012

For Business Investors

Business Type:

Startup Business

Current Stage:

Other

Investor Role:

Silent

Investment Deal:

Equity

Do you have any tax relief available in this funding round?

No

Other Business Details

Business Location:

Can operate anywhere in Dubai Mainland

Premise Details:

Can have as many branches per one license.

Business Operation Details

Employees:

0

Relocatable:

Business Relocatable

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