$100 Billion Restaurant and Cafe Services Market in the UAE by 2026

The month of Ramadan serves as a remarkable period for the café and restaurant sector in the UAE, witnessing an increase in family spending and customer flow by between 20% to 40%, according to a survey conducted by the Interregiona Strategic Analytics Center.

This sector is recognized as one of the fastest-growing in the region, with estimates suggesting that the food service market (including restaurants and cafés) will hit approximately $27.28 billion (100 billion dirhams) this year. Projections indicate that it could rise to $61.21 billion (225 billion dirhams) by 2031, with an annual compound growth rate of nearly 17.5%. This significant expansion is attributed to various factors, including rising income levels, changing lifestyles, and an increased tendency to dine out, alongside the growth in tourism and the hospitality sector within the country, as outlined in a report by Mordor Intelligence on the food service market in the UAE.

While the coffee market in the UAE exceeds 12 billion dirhams (approximately $3.2 billion), Dubai continues to establish itself as one of the world’s densest and most diverse cities for cafés. This is mirrored by a notable rise in coffee consumption outside the home, predominantly in cafés and restaurants, where this model represents about 93% of total coffee expenditure—one of the highest rates globally.

Top 10 Regional Restaurants

Dubai boasts a considerable presence in the “Best 50 Restaurants in the Middle East and North Africa” list for 2026, securing several top positions within the region, with the Egyptian restaurant “Kufu” in Cairo taking the top spot.

Dubai secured 7 of the top 10 places in the rankings, with the following eateries: Kinoya (second regionally), Studio Tre by Creed (third), Orfali Bros (fourth), Safra Maryam (seventh), Jones (eighth), Mana (ninth), and Moonrise (tenth).

Additionally, Dubai garnered further recognition with restaurants like Wood Fire, Kokoro, Phils Dubai, FZN, Takahisa, La Petite Maison, Three Brothers, Gaia, Zuma, Mimi Katushi, Ro On 45, Chez Wam, Boca, and Girl & The Goose making an impact.

Exceptional Season

According to Khaled Mulla, Chairman of the Specialty Coffee Association in the UAE: “If I were to describe Ramadan in Dubai from the perspective of the café and restaurant sector, I would say it is an exceptional season in every sense; after the call to prayer at sunset, the city’s dynamics change. People break their fast and then head out to continue their day in cafés and restaurants, transforming these spaces into lively areas where families and friends gather, simultaneously boosting the economy.”

He adds, “Specifically, coffee holds a unique position in this scene; after iftar, individuals naturally gravitate towards a cup of coffee, whether immediately after the meal or following the Tarawih prayers. This cup has become an integral part of the Ramadan daily ritual, a fixed appointment for gatherings and conversations to enjoy the ambiance. This behavior evidently drives demand for Ramadan gatherings, where the community connects in warm social settings, directly reflecting increased retail demand. The effect extends to cafés as well, particularly in specialty coffee, stimulating sales, energizing supply chains, and creating seasonal job opportunities during the holy month.”

Mulla notes, “However, Ramadan’s impact extends beyond just revenue increases; it activates an entire ecosystem—from coffee bean imports to roasting, operations, and accompanying events. All of this contributes to supporting Dubai’s GDP, which has established itself as a pivotal hub for specialty coffee trade in the region.”

A Billion-Dollar Sector

Mulla emphasizes that the true transformation stems not merely from an increase in the number of cafés but from a shift in consumer mindset; people today seek not just any coffee but a complete experience: the type of bean, the preparation method, the venue’s story, the ambiance, and even a shareable digital moment. Coffee has transitioned from a side beverage after iftar to the core of the experience. It influences café choices, seating arrangements, and social moments. This shift from superficial consumption to specialized experiences is what boosts the sector’s market value year after year.

When we examine the achievements of the “World of Coffee Dubai” exhibition this year in its fifth edition, we observe a clear depiction of this maturation; with over 20,000 specialized visits from more than 80 countries, participation from thousands of brands, and long-term partnerships forged—it indicates that Dubai is no longer merely a coffee-consuming market but has evolved into a platform shaping its future in the region. I firmly believe that Dubai’s strength lies in being a robust local market while serving as a gateway to adjacent markets. In the coffee sector, growth is not measured merely by the number of branches, but by the quality of experiences, the volume of contracts signed, and the prevalence of specialty coffee in hotels, restaurants, and major events.

When the “post-iftar cup” becomes a well-established habit and lifestyle choice, it becomes challenging for consumers to revert to traditional options. The sector thereby transitions into a true billion-dollar industry anchored in quality, innovation, and sustainability, reinforcing Dubai’s status as a key player in the global coffee industry.

Dubai’s Economic Ecosystem

Mohammed Al Marzooki, Events Manager at the Dubai Trade Center, states: “The hospitality sector in Dubai experiences significant growth during Ramadan, enhancing operational activities in catering, guest services, logistics, event management, health and safety, and related fields. This increased activity generates direct and indirect job opportunities across supply chains, transportation, retail, and associated services. The hospitality team at the Dubai World Trade Center witnesses a rise in staffing levels during this time to deliver exceptional experiences in gatherings and outside venues, as well as Iftar and Suhoor events, augmenting the hospitality sector’s contribution to Dubai’s broader economic framework.”

Business

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