The United Arab Emirates is one of the premier destinations in the world. People like to travel to the UAE for luxury tours, corporate expansion, entertainment events, personal recreation, etc. You can open a hospitality business in Dubai to serve the growing number of travelers.
Yes, travelers visit Dubai due to the sustainable, personalized, and culturally conscious experiences. The hospitality vertical of Dubai is a significant contributor to the UAE’s economy. Dubai is carving itself a reputation for attracting the wealthy tourists from across the world.
International standard hotels in Dubai with 7-star and 5-star ratings motivate the foreign travelers too. However, the hospitality industry in the UAE includes many sub sectors. It means there is much business potential in this space for the new players.
Key takeaways of the UAE hospitality sector
These are the notable insights of the hospitality industry in Dubai, UAE.
- The UAE hospitality market has a projection to reach USD 7.6 billion by 2026, driven by the high demand.
- Dubai consistently ranks in the top five global cities for international visitors, boosting hospitality business confidence.
- The UAE aims to attract 40 million hotel guests annually by 2031 under its National Tourism Strategy.
- Dubai’s tourism spending is set to surpass USD 45 billion by 2031, ensuring robust future hospitality demand.
- F&B sector driving growth, with Dubai’s hospitality vertical forecasted to reach nearly USD 9 billion by 2028.
- Average setup cost for a mid-sized hospitality business in Dubai ranges AED 200,000–500,000, depending on location.
- Dubai’s travel and tourism sector is backed by $35 billion infrastructure investments, ensuring long-term industry competitiveness.
- Meetings, Incentives, Conferences, Exhibitions (MICE) market is booming, making Dubai a top global business events hub.
- The entertainment and leisure sector is expanding rapidly, with theme parks, sports, and culture fueling visitor diversification.
- Forecasts suggest 5–7% annual tourism growth through 2030, guaranteeing steady revenue streams for hospitality investors.
- The GCC hospitality sector as a whole is projected to grow at a CAGR of 6.6% till 2030, benefiting Dubai.
- Free zones offer 100% foreign ownership, tax exemptions, and profit repatriation, enhancing Dubai’s investment attractiveness.
- Dubai did welcome 17.15 million international visitors in 2023, a 19% increase in comparison to 2022.
- Dubai hotel occupancy averaged 77.4% in 2023, among the highest globally, showcasing strong hospitality performance.
- The UAE’s hotel room supply will cross 200,000 by 2030, strengthening capacity for future demand surges.
Process to register a hospitality business in Dubai
The demand of the hospitality services makes the UAE among the most attractive destinations for entrepreneurs looking for investment opportunities. Accordingly, the hospitality industry of Dubai continues to grow rapidly. Starting a hospitality business in Dubai is an exciting yet challenging journey.
The hospitality sector of the UAE covers several sub verticals. Success in it requires careful planning, the right licenses, and a solid strategy. It is the step-by-step procedure of registering the license for a hospitality firm in Dubai.
- Determine business activity
- Research the market
- Select corporate jurisdiction
- Get preliminary approval
- Secure appropriate premises
- Register business license
- Open business banking account
- Acquire extra approvals
Now, we briefly look upon these steps of the license registration for your hospitality business in Dubai.
Determine business activity
Look at the current hospitality and tourism trends in Dubai and across the UAE. Identify your target audience, and decide which hospitality niche you want to enter. For example, hotel, lodging, café, travel, fine dining restaurant, etc.
Research the market
Before you launch, take time to study the local hospitality market in Dubai. Once, you understand the market, prepare a thorough business plan. It must include your financial projections, design concepts, operational structure, and marketing approach. Investors and authorities in Dubai expect to see a well-thought-out plan before granting approvals.
Select corporate jurisdiction
Choosing where to register your Dubai hospitality setup is crucial. Many entrepreneurs starting a hospitality company in Dubai target free zones for ease. You can opt for the mainland, or in one of Dubai’s many free zones, so choose wisely.
- Mainland: Provides greater flexibility, allowing you to operate anywhere in Dubai and beyond
- Free zones: Offer a simpler, more cost-effective setup, often with incentives such as 100% ownership and tax benefits
Get preliminary approval
Take initial approval with the no-objection certificate (NOC) from the Department of Economic Development (DED). Otherwise, you can receive it from a free zone authority as well. It let’s you get ahead with the next steps.
Secure appropriate premises
Location plays a huge role in the success of your business in the UAE. Whether, you are opening a hotel on Sheikh Zayed Road, or a restaurant in Jumeirah. Pick a spot that matches your target audience in Dubai and the budget.
Register business license
Take the trade license for the hospitality and tourism services from the Department of Tourism and Commerce Marketing (DTCM).
Open business banking account
Register a corporate bank account, and arrange the funding for expenses like rent, renovations, staffing, and equipment.
Acquire extra approvals
Depending on your location and type of service, you may need building completion certificates, or food and beverage permits.
Consult with us
Main types of the hospitality businesses in the UAE
The UAE’s hospitality sector is vibrant and fast-growing, offering everything from budget-friendly stays to the ultra-luxury experiences. Dubai is emerging as a global hub for leisure and business travelers. Remember, its services go far beyond hotels and restaurants.
Dubai’s hospitality vertical spans across accommodation, food and beverage, travel, events, and entertainment. Each of these niches contribute to the reputation of Dubai as a world-class tourism destination. Here are the leading kinds of the hospitality businesses in Dubai.
Let us have a look on these high demand hospitality business niches in Dubai.
Travel and tourism
As a global transit hub, the UAE’s travel and tourism offerings are matchless. Airlines and luxury passenger rail options connect Dubai to the destinations worldwide. Whereas, tour operators design signature experiences such as desert safaris, heritage tours, and dhow/yacht cruises.
Transportation services, including chauffeur-driven cars and rental options, ensure visitors move comfortably within the UAE. Government investments on infrastructure projects are set to enhance Dubai’s position as a top international tourism destination. Growing demand of the travel services in Dubai are making investment in hospitality sector even more essential.
Event planning
Dubai has become one of the world’s most sought-after destinations for Meetings, Incentives, Conferences, Exhibitions (MICE) sector. Event management firms in the UAE organize the global summits and trade fairs. While, the incentive programs create special experiences for the corporate rewards.
These services benefit from Dubai’s global-level infrastructure, such as the Dubai World Trade Centre, which continues to attract international business. Forecasts suggest the events segment will remain a major growth driver in the hospitality industry in Dubai. Because, more and more multinational companies are picking the city for high-profile gatherings.
Accommodation
Dubai offers an impressive range of places to stay, from iconic luxury hotels like Burj Al Arab to sprawling resorts and boutique hotels. Serviced apartments and vacation rentals are increasingly popular among families and long-stay visitors. Whereas, hostels and motels provide affordable options for budget-conscious short-time travelers.
Food and beverages
The food and beverages (F&B) sector in Dubai is a direct reflection of its multicultural population. From the casual dining and food trucks to Michelin-starred restaurants, Dubai caters to every taste. Cafes and bars offer trendy and traditional experiences, while catering services play vital role in private functions and corporate events. The expanding F&B vertical of Dubai attracts Emirati locals, expatriates, and tourists looking for unique dining experiences.
Entertainment and recreation
The UAE is also famous for its world-class sports events and cultural attractions. Dubai is well known for its theme parks like IMG Worlds of Adventure. Recreation facilities such as golf courses, marinas, and adventure parks add to its appeal.
With the tourism arrivals steadily increasing, entertainment and leisure offerings are set to expand further. It ensures that Dubai remains a top choice for families, thrill-seekers, and culture enthusiasts alike. The UAE is witnessing rising interest in the adventure activities like mountain hiking as well.
Calculate business start-up cost
Top trends in the hospitality vertical in Dubai
These are the trending things in the hospitality vertical of Dubai, UAE.
- Growth in visitors with ease in visa regulations
- Significant infrastructure development
- Developments in lifestyle, green, and mid-scale offerings
- Usage of new technologies
Next, we highlight these trendsetters in the hospitality space of Dubai.
Growth in visitors with ease in visa regulations
The UAE is easing its visa requirements for encouraging visits from more source markets globally. Now, it grants visas on arrival to the Russian, Chinese and Indian citizens. Tourists on transit visa can check out some of major attractions of Dubai that are closer to the airport.
- The UAE’s Golden Visa program is also driving long-term stays, especially from high-net-worth individuals (HNWIs).
- Dubai International Airport (DXB) did handle 46 million passengers in H1 2025, with forecasts expecting 100 million visitors in 2026.
- India, Russia, and China collectively contribute over 30% of Dubai’s inbound tourism, and this has projection to rise with easing visa rules.
Significant infrastructure progress
Both international and local Emirati investors are actively pursuing entry into the UAE hospitality sector. New developments include luxury resorts, mixed-use complexes, theme parks, and state-of-the-art convention centers. The government is investing on up-gradation projects like the Dubai Creek Harbour, Expo City Dubai, and Al Maktoum International Airport.
- The UAE has allocation of over USD 23 billion for tourism-related infrastructure in the next five years.
- Dubai’s hotel supply is set to cross 155,000 rooms by 2030, driven by global hotel chains.
- The hospitality investment market in Dubai grew by 18% year-on-year in 2024, signaling strong investor confidence.
Developments in lifestyle, green, and mid-scale offerings
While, Dubai is famous for its luxury hotels, there is a growing trend towards lifestyle-focused, Eco-friendly, and mid-scale hospitality options. Four and five star hotels account for 57% of the total available rooms in Dubai. However, the demand for mid-market accommodation is steadily increasing, as Dubai attracts a more diverse traveler demographic.
- 30% of new hotels in Dubai are projected to be mid-scale or lifestyle-focused by 2030.
- The global Eco-tourism market will reach USD 333 billion by 2027, and Dubai aims to become leader in sustainable hospitality.
- Expo City Dubai has the commitment to 100% renewable energy and zero-carbon standards, setting the tone for future developments.
Usage of new technologies
Emerging technologies are revalorizing the hospitality industry of the UAE. Technology is rapidly transforming Dubai’s hospitality sector, with hotels/resorts adopting digital innovations to enhance guest experiences and streamline operations. From AI-powered concierge services and smart room controls to contactless check-ins and mobile payment solutions, hotels are embracing digitization. Virtual reality (VR) is powering immersive hotel tours, while blockchain is improving secure booking systems.
- The Middle East’s hospitality tech market is forecast to grow at 12.5% CAGR of between 2025–2030, with Dubai leading adoption.
- 65% of hotels in Dubai are likely to implement the full smart-room technology by 2027.
- Contactless hotel check-in adoption is increasing by 40%, with high guest satisfaction rates.
Consult with us
Advantages of the Dubai hospitality market in the UAE
The UAE is presenting itself as a global leader in hospitality. Benefits of starting a hospitality business in Dubai go far beyond its stunning skyline and luxury lifestyle. Dubai gives access to one of world’s fastest-growing tourism markets, favorable tax benefits, and a business-friendly setup for foreign ownership.
It has world-class infrastructure with high standards of service, and strong regulatory framework. All these amenities combine to make Dubai a hot-spot for entrepreneurs and investors alike. These are some other rewards that keep Dubai a standout destination for international hospitality experiences.
- Strategic global location
- Thriving tourism market
- Financially open and business-friendly policies
- Diverse customer base
- World-class infrastructure and skilled workforce
Lastly, we discuss the plus points of investing in the hospitality space of Dubai.
Strategic global location
Dubai’s strategic positioning at the crossroads of Asia, Europe, and Africa further enhances its appeal. This geographic advantage makes it a global hub for both tourism and business travel. Subsequently, it gives hospitality companies in Dubai access to a broad international market.
With growth projection of hospitality sector at 7.5% CAGR, investors can have confidence about the long-term opportunities. Also, the industry reports show that Dubai consistently ranks among the top five global cities for the international visitors. It reinforces the standing of Dubai as one of the most lucrative markets for hospitality investment worldwide.
Thriving tourism market
One of the biggest strengths of the Dubai’s hospitality industry is consistent demand, driven by millions of international visitors annually. According to Dubai’s Department of Economy and Tourism, the city welcomed over 17 million tourists in 2023. While, forecasts suggest steady annual growth of 5–7% through 2030.
It ensures high occupancy rates for hotels, restaurants, and entertainment venues. Dubai also frequently hosts large-scale global events like Expo 2020, COP28, and international trade fairs. They attract thousands of business travelers and boost demand across the hospitality sector.
Financially open and business-friendly policies
Dubai provides matchless financial incentives to the Emirati and foreign entrepreneurs. Businesses operating in the free zones enjoy tax exemptions, including zero personal income tax, allowing owners to maximize profits. Also, investors benefit from 100% foreign ownership and complete freedom to repatriate profits.
It makes Dubai a secure and flexible destination for international investment. Coupled with pro-business policies and streamlined licensing processes, the ease of doing business here is a major draw. On top of that, Dubai is set to keep these policies for a long time.
Diverse customer base
Another advantage is Dubai’s ability to cater to a wide spectrum of customers. Whether, it is luxury seekers staying in five-star resorts or budget-conscious travelers booking affordable stays. The diversity of the customer base opens opportunities for every hospitality company in Dubai.
World-class infrastructure and skilled workforce
Equally important is the international-level infrastructure of Dubai, and the broader UAE. From cutting-edge hotels and resorts to efficient transportation systems, the city provides everything needed for hospitality in Dubai to flourish. Also, the sector benefits from a highly skilled, multicultural workforce drawn from worldwide, ensuring service standards remain globally competitive.
Calculate business start-up cost
Conclusion
Mega investments and rising global demand are shaping the future of the UAE’s hospitality sector. Aligning with the UAE’s Net Zero 2050 strategy, Dubai is adding sustainable hospitality projects, including Eco-resorts and green-certified hotels. Greater connectivity in Dubai will fuel growth for hotels, restaurants, and entertainment venues.
With advance-level digital adoption like AI-powered booking platforms and smart hotel operations, Dubai is emerging as a global tourism leader. Dubai International Airport (DXB) is set to handle 100 million passengers by 2026. Al Maktoum International Airport is on-course to become the world’s largest aviation hub.
Dubai is positioning itself as a pioneering model of future-ready hospitality. For entrepreneurs, this means vast opportunities in a market that continues to set global benchmarks. It is open for both Emirati and expatriate investors to avail the booming prospective opportunities.
Do you want to begin a hospitality business in Dubai? Make your new entrepreneurial move seamless, efficient, and successful. Connect with the professional consultants of KWS Middle East right now.
Consult with us
FAQs about the UAE hospitality industry
These are the answers to the common questions regarding the hospitality sector of Dubai, UAE.
Which are the main sectors within Dubai’s hospitality industry?
The hospitality vertical of the UAE spans several high-growth areas. Each sub niche complements the other, creating an ecosystem that caters to millions of leisure and business travelers every year. Here are some prime sub sectors of the hospitality scene of Dubai.
– Accommodation (hotels, resorts, serviced apartments, etc.)
– Food and beverages (restaurants, cafes, catering, etc.)
– Travel and tourism services (tour operators, airlines, trains, cruises, etc.)
– Events and exhibitions (MICE industry)
– Entertainment and leisure (theme parks, cultural attractions, sports, nightlife, etc.)
Author Bio
