UAE Restaurant Industry

The UAE restaurant industry’s market size is estimated at AED 73.38 billion ($19.98 billion) in 2024 and is expected to reach AED 161.53 billion ($43.98 billion) by 2029, growing at a Compound Annual Growth Rate (CAGR) of 17.10% during the forecast period (2024-2029)¹.

Full-service restaurants accounted for the largest share of the market in 2022, with Middle Eastern and Asian cuisine accounting for a 72.60% share. Arabic cuisine is especially popular in the UAE. Due to the large ex-pat population in the UAE, there are also many international cuisines available, such as Italian and Chinese¹.

Key Factors Driving the Market Growth

Dubai’s gastronomy scene is fast-growing and diverse, reflecting the city’s status as a cultural melting pot with over 200 nationalities². The city’s gastronomy industry is a key driver of the global tourism sector.

The food and beverage sector in Dubai attracted new FDI worth AED 2,119 million ($577 million) from 2019 to 2023³. This investment was made by 48 international companies from 23 countries.

Consumer Spending and E-Commerce Impact

Consumer spending on food via e-commerce platforms reached AED 4 billion ($1.1 billion) in 2023 and is expected to increase at a Compounded Annual Growth Rate (CAGR) of 9.5% between 2023 and 2027. The UAE’s food and beverage sector generated AED 60.2 billion ($16.4 billion) in retail sales, including fresh food and packaged food³.

Investment in Restaurant Tech

The UAE accounted for the largest share of venture capital investments in the Middle East’s restaurant tech sector from 2018 to 2023. It attracted investments exceeding $1 billion in this area³.