UAE Food Service Market- Trend Analysis & Forecasts

Market Overview

The UAE food service market, valued at US$ ** billion in 2024, is a dynamic and fast-growing sector driven by demographic shifts, evolving lifestyles, and strategic government initiatives. The nation’s population—currently around 10 million, with a high proportion of expatriates—fuels demand for diverse food offerings. In 2023 alone, the sector expanded by about 6.8% year-on-year as spending per capita on dining out rose to US$ ** annually. Urban centers such as Dubai and Abu Dhabi account for nearly **% of total market value, with the balance distributed across Sharjah, Ajman, and emerging emirates.

Foreign investment flows and liberal business policies have attracted major international franchise operators, boosting QSR and fine-dining segments. The UAE signed multiple strategic partnerships in 2024—such as a franchise agreement between Savola Foods and a Gulf QSR chain, and the acquisition of a local gourmet café chain by a private equity group—strengthening consolidation and expansion. Another key development includes the launch of a Dubai-based “food mall” concept in early 2025, expected to accommodate up to 30 F&B outlets under one roof.

Despite these positive signals, the market still faces fluctuating raw material prices—in 2023, food input costs rose by about 5–7%, compressing profit margins from an average of 8% to around 6% in many establishments. Nonetheless, digital adoption—particularly online ordering and digital loyalty programs—continues to drive revenue growth, with online transactions now representing 30% of total food service sales, up from 20% in 2021.

UAE Tourism Growth Trend

Tourism remains a central pillar of the UAE food service market. In 2023, the UAE welcomed around 17 million international tourists, generating an estimated US$ 40 billion in tourism spending, of which approximately 25% (US$ 10 billion) flowed into F&B services. That same year saw a 10% year-on-year growth in tourists compared to 2022, highlighting the tourism recovery post-pandemic. The Expo 2020 legacy continues to boost arrivals, with annual arrivals projected to reach 20 million by 2025. This influx intensifies demand for both quick and upscale dining, particularly in destinations like the Dubai Marina and downtown Abu Dhabi. As a result, food service businesses located within hotels, attractions, and retail zones benefit considerably, with revenue per available seat inching towards US$ 150 per day in premium locales. The symbiotic growth of tourism and food service spells enduring opportunity for stakeholders.

UAE Quick Service Restaurants Growth Trend

Quick Service Restaurants (QSRs) in the UAE are expanding at a remarkable pace. In 2024, the QSR segment alone was worth about US$ ** billion, witnessing 8.2% CAGR over 2022–2024. Driven by demand for affordability, speed, and convenience, QSR visits grew by **% year-on-year in 2023. Digital ordering via apps such as Talabat, Zomato, and Deliveroo now accounts for **% of QSR sales, up from **% in 2021. Major chain expansions played a key role—McDonald’s opened 10 new outlets in Dubai and Sharjah in 2023; regional brand Al Baik inaugurated its 15th outlet in Abu Dhabi in 2024; Subway launched a ghost kitchen model in 2025 to capture delivery-only demand. Investor interest has likewise surged, with a US$ ** million private equity investment in a QSR brand update early in 2024. Solid margins—averaging 10%, compared to 6% in full-service venues—make the QSR model especially attractive. Overall, the QSR trend remains a core growth engine within the broader food service ecosystem.

UAE Food Service Market Growth Factors

Market Segmentation Analysis

Upon segmenting the UAE food service market, it is clear that the landscape is multilayered by service type, cuisine, and channel. In 2024, quick service restaurants (QSRs) represented about **% of total market value (~US$ ** billion), while full-service dining accounted for **% (~US$ ** billion), buffet-and-casual dining around **%, and institutional & event catering the remaining **%. By cuisine type, international fast food and Western casual trends dominate, yet the share of Middle Eastern/national cuisine rose from **% in 2020 to **% in 2024, driven by brands like Al Baik.

In the channel segment, dine-in constitutes roughly **% of revenues, while delivery and take-away together make up about **%, and catering services the final **%. Online delivery’s share climbed from **% in 2021 to **% in 2024, with meal-kit services and cloud kitchens contributing another **%. Among emirates, Dubai holds nearly **% of the market, Abu Dhabi **%, Sharjah **%, and the rest distributed across the Northern Emirates. The premium dining niche—comprising five-star hotels and upscale standalone restaurants—accounts for **% of full-service revenues and garners higher per-capita spends (averaging US$ 100 per cover, versus US$40 in mid-tier). Conversely, budget fast-casual outlets draw high volumes, with per-capita spend of US$15–20.

Emerging models like cloud kitchens and subscription meal services are growing; cloud kitchens alone are poised to contribute US$ ** million by 2026, with an expected CAGR of **% through 2032. Geographic segmentation also highlights growth potential in Sharjah and Ajman, where per-capita dining spends—US$ ** annually—remain below Dubai’s US$ **, indicating untapped opportunity. This segmentation reveals where investors and policymakers can channel growth strategies—premium urban hubs, digital channels, and regional expansion.

Consumer Preference of Type of Food Service in UAE

Consumer preferences in the UAE continue to evolve toward convenience, variety, and quality, shaping the types of food service experiences in demand. Approximately 45% of consumers now prioritize quick service and delivery due to busy lifestyles, while 30% favor fine-dining for social and experiential reasons. Convenience-driven urban professionals aged 25–40 make up 40% of total diners, largely turning to mobile ordering (via apps) and value-oriented offers. Health consciousness is rising, with 35% of consumers in 2024 stating they prefer healthier or plant-based options—a 10% increase over 2021—prompting operators to expand salad bars, vegan menus, and nutrition-transparent offerings.

Moreover, 25% of consumers express a preference for experiential dining—theme-based, fusion, or artisanal cuisine—fueling growth of “instaworthy” cafés and concept restaurants. Emirati and regional expatriate populations show strong loyalty to Middle Eastern cuisine, with 30% of QSR visits involving local flavors. Family‐oriented dining, with emphasis on shared meals and kid-friendly menus, accounts for 20% of full-service demand. Social media and influencer culture impact choices—50% of millennial and Gen-Z consumers report trying restaurants based on online reviews or posts.

Emerging demands for contactless, no-human-touch service—such as kiosks and tabletop ordering—are growing: over 20% of outlets in 2024 offer such features, up from 10% in 2022. Consumers also increasingly favor value for money; promotional bundles on delivery platforms boosted QSR sales by 15% in 2023. This shift in consumer behavior underlines that success in this market depends on blending convenience, health, technology, and rich experiences.

UAE Food Service Market Competitive Analysis

Future Outlook

Looking ahead to 2032, the UAE food service market is expected to grow steadily, reaching an estimated US$ ** billion, up from US$ ** billion in 2024, reflecting a CAGR of **% over the forecast period. Quick service restaurants are projected to maintain leadership, reaching around US$ ** billion, while delivery and cloud kitchen channels are expected to collectively comprise **% of total sales, driven by escalating digital adoption. Demand for health-oriented and experiential dining is set to command a growing share—projected to reach **% of full-service revenues by 2032—spurred by sustained consumer interest in wellness and novelty.

Regional emirates like Sharjah and Ajman are forecast to double per-capita dining spend—from current US$ 300 to US$ 600—narrowing the gap with Dubai and expanding geographic market by 15–20%. Premium dining and sought-after concept establishments in tourist-heavy locations are expected to offer high margin upside, while cloud kitchens and dark-kitchen models may account for 10% of market value by the end of the decade. Supply chain resilience improvements—underpinned by government investments in local food parks and modern logistics—are anticipated to reduce cost volatility, trimming input cost inflation impact to 2–3% annually, compared to 5–7% historically. Investors and policymakers who concentrate on digital convenience, health trends, and regional expansion are well positioned to capitalize on this growth frontier. The UAE food service market’s forward momentum suggests both dynamic returns and transformation through 2032.