United Arab Emirates Food Services Market By Type (Full-Service Restaurants, Quick Service Restaurants, Others), By Ownership (Standalone Outlets, Chained Outlets), By Brands (Domestic, International), By Region, Competition, Forecast & Opportunities, 2020-2030F

Market Overview

The United Arab Emirates Food Services market was valued at USD 17.25 Billion in 2024 and is expected to grow to USD 24.45 Billion by 2030 with a CAGR of 19.32% during the forecast period. The United Arab Emirates Food Services market is driven by several key factors, including the country's thriving tourism sector, rising disposable incomes, and a growing expatriate population. As a part of this, according to a recent study, the travel and tourism sector contributed nearly USD 15.74 billion to the UAE’s GDP in 2022, accounting for 9% of the total GDP. The overall expenditure of international tourists in 2022 was USD 11.04 billion. The UAE's diverse population has led to an increased demand for a wide variety of food options, from traditional Middle Eastern dishes to international cuisines. Also, the government's focus on economic diversification and infrastructure development has further boosted the food services industry, making it a key sector in the UAE economy. The increasing number of dining outlets, quick-service restaurants (QSRs), and delivery services has also contributed to the growth of the market. Also, changing consumer preferences towards healthier and more sustainable food options are shaping the future of the food services landscape in the UAE.

Key Market Drivers

Rising Expat Population Across the Region

The rising expatriate population across the United Arab Emirates (UAE) plays a significant role in the expansion of the food services market. The UAE has long been a hub for expatriates from all around the world, particularly from South Asia, Europe, and the Middle East. As the number of expatriates continues to increase, their diverse culinary preferences are driving demand for a wider range of dining options, including international cuisines and fusion food offerings. Expatriates often seek comfort foods from their home countries, which has led to the proliferation of restaurants offering Indian, Filipino, Western, and other global flavors. This demographic shift has encouraged food service providers to diversify their menus, cater to various dietary needs, and adopt new food trends to meet the evolving tastes of expatriates. The growing expatriate population also contributes to the demand for quick-service restaurants (QSRs), food delivery services, and online food ordering platforms. As these residents prioritize convenience and quality, food service providers are increasingly focusing on offering fast, accessible, and high-quality dining experiences. With expatriates being a key consumer base, the UAE’s food services market is expected to continue its growth, driven by their increasing numbers and changing dining preferences.

Rapid Urbanization & Changing Lifestyle

Rapid urbanization and changing lifestyles are major drivers of the food services market in the United Arab Emirates (UAE). As a part of this, according to a recent study, as of 2023, the urban population of the UAE was 8,353,814, reflecting a growth of 1.07% compared to 2022.As the country continues to experience rapid urban growth, cities like Dubai, Abu Dhabi, and Sharjah are becoming increasingly bustling hubs with expanding infrastructure and a diverse population. This urbanization has led to a growing demand for convenient, diverse, and high-quality dining options, particularly in busy urban centers where people seek quick and efficient food solutions. The changing lifestyle of residents, characterized by fast-paced working schedules and the increasing popularity of eating out, is also contributing to the growth of the food services sector. The demand for quick-service restaurants (QSRs), food delivery services, and take-out options has surged, as consumers prioritize convenience without compromising on food quality. Also, urban dwellers are increasingly seeking diverse food choices, including international cuisines and healthy meal options, reflecting a shift in dietary preferences. As more people adopt busy, on-the-go lifestyles, food services are adapting by offering more flexible and accessible dining options, such as mobile food apps, delivery services, and 24/7 outlets. This rapid urbanization and changing lifestyle trends are expected to continue driving the growth and innovation within the UAE food services market.

Increasing Government Support to Strengthen the Food Service Sector

The increasing government support to strengthen the food service sector is a significant driver of growth in the United Arab Emirates (UAE) food services market. As a part of this, according to a recent study, as of 2025, the government collaborated closely with the private sector to boost investments in food security initiatives. It is through public-private partnerships that projects aimed at food innovation and logistics infrastructure, such as food storage and distribution systems, have been able to get off the ground. The UAE government has implemented various policies and initiatives aimed at promoting the hospitality and food service industries, recognizing them as key components of the national economy. These efforts include easing business regulations, offering incentives for new food service establishments, and supporting the growth of both local and international food chains. In addition, the government’s commitment to sustainability and innovation in food services, such as encouraging healthier eating habits and eco-friendly practices, has created new opportunities for businesses. The establishment of food safety standards and regulations ensures that the market remains well-regulated and that consumers enjoy high-quality, safe dining experiences. The UAE government is also focusing on the diversification of its economy and increasing tourism, which directly benefits the food service sector. By supporting initiatives to attract tourists, such as large-scale events, exhibitions, and festivals, the government further boosts demand for dining options, contributing to the expansion of the food services market. Also, the rise in government-funded infrastructure projects, such as new malls, residential developments, and entertainment hubs, provides ample opportunities for food service businesses to thrive. These efforts make the UAE an attractive destination for both investors and food service operators, fostering an environment for sustained growth in the market.

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Key Market Challenges

 Intense Competition Among Players

Intense competition among players is one of the key challenges facing the UAE food services market. As the food service sector continues to grow, both local and international brands are vying for market share, leading to heightened competition, particularly in major urban centers like Dubai and Abu Dhabi. The entry of numerous quick-service restaurants (QSRs), cafes, fast-casual chains, and fine dining establishments has saturated the market, forcing companies to constantly innovate and differentiate themselves to attract and retain customers. This intense competition results in price wars, which can negatively impact profit margins, especially for smaller operators who may struggle to match the marketing budgets and promotional strategies of larger chains. Also, consumers’ expectations for quality, service, and convenience are continuously rising, pushing food service providers to deliver exceptional experiences consistently. In response to this competitive pressure, companies must adopt strategies such as menu diversification, superior customer service, technological integration (e.g., mobile apps and online ordering), and enhancing delivery services. Also, maintaining a strong brand presence and effectively engaging with customers through social media and loyalty programs has become increasingly important. Ultimately, while competition drives innovation, it also presents challenges for food service businesses to sustain profitability, differentiate their offerings, and stand out in an overcrowded market.

High Operational Cost

High operational costs present a significant challenge for the UAE food services market. The costs associated with running food service establishments, including labor, rent, raw materials, utilities, and logistics, are rising, putting pressure on businesses to maintain profitability. In cities like Dubai and Abu Dhabi, where commercial real estate prices are high, rent is a major component of operational expenses. Also, the UAE’s reliance on imported ingredients and raw materials contributes to higher food costs, as fluctuations in international prices can directly impact businesses. Labor costs are another factor, as the UAE has stringent labor regulations, and food service establishments are often required to offer competitive salaries and benefits to attract skilled workers. With a shortage of local talent in the hospitality sector, many businesses rely on expatriate labor, adding to the complexity and cost of operations. Also, utilities, such as electricity and water, can be expensive, particularly for businesses operating in large-scale facilities or with energy-intensive operations like refrigeration and air conditioning. To cope with these high operational costs, food service providers are increasingly exploring cost-saving strategies such as optimizing supply chains, streamlining operations, investing in energy-efficient equipment, and leveraging technology for automation and improved resource management. Despite these challenges, businesses that can effectively manage operational costs while maintaining quality and service standards are more likely to succeed in the competitive UAE food services market.

Key Market Trends

Rising Trend of Online Ordering

The rising trend of online ordering is a significant driver in the UAE food services market. As a part of this, according to a recent study, as of 2024, the online food delivery market penetration rate in the United Arab Emirates would rise continuously from 2024 to 2028, totaling an increase of 6.9 percentage points. With the growing use of smartphones and digital platforms, more consumers are opting for the convenience of ordering food online. This shift is especially prominent in urban areas like Dubai and Abu Dhabi, where busy lifestyles and a preference for convenience make online ordering an attractive option. The trend is fueled by the increasing availability of food delivery apps and platforms, such as Uber Eats, Deliveroo, and Talabat, which have made it easier for customers to access a wide variety of dining options from the comfort of their homes or workplaces. Also, many restaurants are integrating their own online ordering systems to cater to the demand, allowing for more direct engagement with customers and better control over the ordering process. Online ordering has become an essential part of the food service experience, offering benefits such as contactless payments, personalized menus, and real-time tracking of orders. As consumers continue to prioritize convenience and speed, the demand for delivery services is expected to rise further. This trend is also prompting food service businesses to enhance their digital presence, invest in user-friendly websites and mobile applications, and streamline delivery processes to meet customer expectations. Overall, the rising trend of online ordering is reshaping the UAE food services market, driving growth, innovation, and greater competition in the sector.

Rise of Cloud Kitchen

The rise of cloud kitchens is a prominent trend in the UAE food services market. Cloud kitchens, also known as ghost kitchens or virtual kitchens, are commercial kitchen spaces that operate solely for delivery and takeout services, without a traditional dine-in area. This trend has gained significant momentum due to the increasing demand for food delivery services, accelerated by the popularity of online ordering platforms and the convenience they offer to consumers. Cloud kitchens allow food service providers to reduce overhead costs associated with rent, interior design, and staffing, making it an attractive option for entrepreneurs and established brands alike. This business model enables operators to optimize their operations, focus on delivery-only services, and cater to a larger customer base without the constraints of a physical restaurant. Also, cloud kitchens enable businesses to experiment with multiple brands or cuisines under one roof, further enhancing their market reach. In the UAE, where demand for fast and convenient food delivery continues to rise, cloud kitchens provide a scalable solution that can be adapted to meet the needs of busy urban consumers. Also, cloud kitchens offer the flexibility to enter new markets quickly and at a lower cost, which is especially advantageous in the highly competitive food services sector. As the trend continues to evolve, cloud kitchens are expected to play a key role in reshaping the UAE food services landscape.

Growing Emphasis on Health & Wellness

The growing emphasis on health and wellness is a key trend in the UAE food services market. As consumers become more health-conscious, there is an increasing demand for healthier food options, such as organic ingredients, low-calorie meals, plant-based alternatives, and options rich in nutrients. This shift in dietary preferences is driving food service providers to innovate and cater to the growing demand for nutritious, balanced meals that align with consumers' wellness goals. Restaurants, cafes, and fast-food chains are responding by incorporating healthier menu items, such as salads, smoothies, gluten-free options, and dishes with fewer preservatives, artificial ingredients, and sugars. Many establishments are also focusing on transparent sourcing, providing detailed nutritional information on menus to allow consumers to make informed choices about their meals. Also, the trend is also fuelled by the rising popularity of fitness and wellness culture in the UAE, with more individuals embracing active lifestyles and looking for food options that complement their health goals. This includes not only nutritious meals but also functional foods designed to boost energy, aid digestion, or enhance immunity. To further support this trend, some food service providers are introducing personalized meal plans, catering to specific dietary needs such as keto, vegan, or gluten-free diets. Overall, the growing emphasis on health and wellness is shaping the UAE food services market, with businesses adapting to meet the evolving preferences of health-conscious consumers.

Segmental Insights

Type Insights

Full-Service Restaurants dominated the United Arab Emirates Food Services market offering a wide range of dining experiences, from casual to fine dining. These establishments attract both locals and tourists, particularly in key urban centers like Dubai and Abu Dhabi. The growing popularity of international cuisines, coupled with a demand for high-quality food and exceptional service, has contributed to the success of FSRs. As the UAE continues to be a global hub for business, tourism, and leisure, full-service restaurants are well-positioned to capitalize on these trends, providing diverse dining options that cater to various consumer preferences and tastes.

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Regional Insights

Dubai dominated the United Arab Emirates Food Services market, due to its status as a global business and tourism hub. The city’s diverse population, thriving tourism industry, and high-income residents contribute to the demand for a wide variety of food services, ranging from fast food to fine dining. Dubai's strategic location, cosmopolitan lifestyle, and large number of international tourists further drive the growth of the food service sector. With numerous malls, hotels, and entertainment venues, Dubai offers a dynamic environment for food service businesses to thrive. The city's food culture is characterized by a mix of local and international cuisines, making it a key market for both local and global food brands.

Recent Developments

• In January 2025, Americana Restaurants International Plc, the foremost operator of quick-service and out-of-home dining establishments in Kazakhstan and the MENA region, acquired Pizza Hut brand in Oman from Khimji Ramdas Group.  The purchase of 46 Pizza Hut outlets, generating around USD 11 million in annual revenue for 2024, bolsters Americana Restaurants' strategy to broaden its regional footprint and fortify its presence in current markets.
• In December 2024, Subway UAE has customized its menu through a partnership with Excellence Hot Sauce, blending local flavors with the UAE's vibrant music and arts scene. This initiative highlights the iconic combination of Excellence Hot Sauce and chips, a beloved staple in UAE cafeteria culture. For years, this pairing has been known for its distinct heat, crunch, and tang, enhancing the street food experience across the region. The collaboration celebrates this fusion of local nostalgia and flavors, bringing a unique culinary experience to Subway’s offerings.

Key Market Players  

• Al Khaja Group
• Alamar Foods Company
• Americana Restaurants International Plc
• Apparel Group
• CKE Restaurants Holdings, Inc.
• Starbucks Coffee Company
• Americana Restaurants International Plc
• Domino's Pizza
• D.ream international
• Deli & Meal LLC

Report Scope:

In this report, the United Arab Emirates Food Services Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

•   United Arab Emirates Food Services Market, By Type:

o   Full-Service Restaurants

o   Quick Service Restaurants

o   Others

• United Arab Emirates Food Services Market, By Ownership:

o   Standalone Outlets

o   Chained Outlets

• United Arab Emirates Food Services Market, By Brands:

o   Domestic

o   International

• United Arab Emirates Food Services Market, By Region:

o   Dubai

o   Abu Dhabi

o   Sharjah

o   Rest of UAE

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the United Arab Emirates Food Services Market.

Available Customizations:

United Arab Emirates Food Services Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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