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UAE Hospitality Market Size (2024 - 2029)

The market size of the UAE hospitality industry is poised for growth, driven by the country's status as a premier global destination for leisure and business travelers. This growth is supported by the tourism sector, a significant contributor to the UAE's non-oil income, and bolstered by the nation's geopolitical stability, world-class infrastructure, and commitment to international events. Additionally, the resilience of domestic tourism, particularly the rising trend of staycations among residents, further contributes to the robustness of the hospitality market.

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Market Size of UAE Hospitality Industry

UAE Hospitality Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 50.57 Billion
Market Size (2029) USD 65.96 Billion
CAGR (2024 - 2029) 5.46 %
Market Concentration Medium

Major Players

UAE Hospitality Market Major Players

*Disclaimer: Major Players sorted in no particular order

UAE Hospitality Market Analysis

The UAE Hospitality Market size is estimated at USD 50.57 billion in 2024, and is expected to reach USD 65.96 billion by 2029, growing at a CAGR of 5.46% during the forecast period (2024-2029).

The hospitality industry is one of the most rapidly expanding and vibrant industries globally. In rapidly developing economies like the United Arab Emirates, hospitality significantly enhances the country's global presence and economic advancement. The increasing presence of hotel chains, resorts, and other establishments, including well-known international and local brands, underscores the industry’s vitality and crucial role in the country's economy. Dubai, in particular, stands out as a premier tourism destination, with its popularity poised for further growth in the future.

The hospitality industry in the United Arab Emirates, particularly in Dubai and Abu Dhabi, thrives due to several key factors. These cities are major global tourism hubs, drawing millions of visitors annually for business and shopping. This consistent tourism growth stimulates the demand for hospitality services. The United Arab Emirates is renowned for its luxurious hospitality offerings, including upscale hotels, resorts, and restaurants. The desire for lavish experiences among wealthy travelers continues to propel market growth. Additionally, the United Arab Emirates is a top destination for business and MICE (meetings, incentives, conferences, and exhibitions) tourism in the region, owing to its exceptional conference facilities and exhibition centers, attracting many business travelers.

UAE Hospitality Industry Segmentation

The hospitality industry encompasses various businesses and services related to lodging, dining, event planning, theme parks, transportation, and other activities catering to travelers, tourists, and residents seeking leisure, recreation, and entertainment experiences. 

The hospitality industry in the United Arab Emirates is segmented by type and segment. By type, the industry is segmented into chain hotels, service apartments, and independent hotels. By segment, the industry is divided into budget and economy hotels, mid and upper-mid-scale hotels, and luxury hotels. The reports offer market sizing and forecasts in value (USD) for all the above segments.

By Type
Chain Hotels
Service Apartments
Independent Hotels
By Segment
Budget and Economy Hotels
Mid and Upper mid scale Hotels
Luxury Hotels
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UAE Hospitality Market Size Summary

The hospitality industry in the United Arab Emirates is a significant contributor to the country's economy, with tourism being a major source of non-oil income. The UAE has established itself as a premier global destination for both leisure and business travelers, benefiting from its geopolitical stability, world-class infrastructure, and a commitment to hosting international events. These factors have bolstered the growth of the tourism sector, which in turn has strengthened the hospitality industry. The domestic tourism market has also shown resilience, with a growing trend of staycations among residents, driven by convenience and the opportunity to explore local attractions.

Dubai, in particular, has been a focal point for tourism growth, with the city being recognized as a top travel destination globally. The tourism sector's contribution to Dubai's GDP underscores its importance in the city's economic strategy. The UAE's hospitality market is characterized by a robust pipeline of luxury hotels, with numerous high-end properties set to open in the coming years. This growth is supported by both international hospitality giants and strong domestic groups, offering ample opportunities for new entrants. The market continues to evolve with new developments and expansions, reflecting the UAE's ongoing commitment to enhancing its status as a leading tourism and hospitality hub.

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UAE Hospitality Market Size - Table of Contents

  1. 1. MARKET INSIGHTS AND DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 Rising Tourism in the United Arab Emirates Bolsters the Growth in Hospitality Sector

      2. 1.2.2 The Rise in the Mice Industry in the United Arab Emirates Drives the Hospitality Sector

    3. 1.3 Market Restraints

      1. 1.3.1 High Rentals in the United Arab Emirates Pose a Restraint to the Hospitality Sector

    4. 1.4 Market Opportunities

      1. 1.4.1 Adopting Sustainable Practices, Such as Energy-Efficient Buildings

    5. 1.5 Value Chain/Supply Chain Analysis

    6. 1.6 Industry Attractiveness: Porter's Five Forces Analysis

      1. 1.6.1 Bargaining Power of Buyers

      2. 1.6.2 Bargaining Power of Suppliers

      3. 1.6.3 Threat of New Entrants

      4. 1.6.4 Threat of Substitutes

      5. 1.6.5 Intensity of Competitive Rivalry

    7. 1.7 Insights on Revenue Flow From the Accommodation and Food and Beverage Sector

    8. 1.8 Leading Cities In United Arab Emirates With Respect to the Number of Visitors

    9. 1.9 Investments (Real Estate, Fdi, and Others) In the Hospitality Industry

    10. 1.10 Technological Innovations In the Hospitality Industry

    11. 1.11 Insights on Shared Living Spaces Impact on the Hospitality Industry

    12. 1.12 Insights on Other Economic Contributors to the Hospitality Industry

    13. 1.13 Impact of Covid-19 on Hospitality Industry

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Type

      1. 2.1.1 Chain Hotels

      2. 2.1.2 Service Apartments

      3. 2.1.3 Independent Hotels

    2. 2.2 By Segment

      1. 2.2.1 Budget and Economy Hotels

      2. 2.2.2 Mid and Upper mid scale Hotels

      3. 2.2.3 Luxury Hotels

UAE Hospitality Market Size FAQs

The UAE Hospitality Market size is expected to reach USD 50.57 billion in 2024 and grow at a CAGR of 5.46% to reach USD 65.96 billion by 2029.

In 2024, the UAE Hospitality Market size is expected to reach USD 50.57 billion.

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