Dubai Dining Costs Surpass Paris, London, and Tokyo: What’s Driving the Price Surge?

Shahba Mayyeri -

The cost of dining out in Dubai has increased, driven by global economic challenges such as rising rents, supply chain disruptions, and inflation, according to industry leaders who spoke at a panel discussion organized by the UAE Restaurant Group at the Dubai Chamber on Monday.

Global Factors Impacting Costs

Stefano Mihalitisianos, Managing Director for the Middle East at Tashas Group, pointed to the Ukraine-Russia war and its ripple effects on the global economy as a key contributor to rising prices.

“The cost of goods has gone up globally, and rents have increased significantly in recent years,”

Mihalitisianos explained, adding that restaurants are doing their best to stay competitive despite rising labor costs and inflation.

Dining Costs in Perspective

According to a study by UK-based Holidu, Dubai ranks 98th among 150 cities for dining costs.

  • Inexpensive meals in Dubai average €10 (Dh38).
  • Mid-range meals for two cost around €62 (Dh197).
    This affordability places Dubai ahead of cities like Paris, London, and Tokyo.
    In comparison, Abu Dhabi ranks 75th, where an inexpensive meal costs €6.2 (Dh23.5), and a mid-range meal is priced at €49.5 (Dh187).

Despite the upward pressure on prices, Mihalitisianos emphasized that restaurants are not exploiting the situation. Naveed Nasir, founder of the Khadak restaurant chain, stressed the importance of transparency in pricing, warning that cutting corners on quality for short-term gains could harm businesses in the long run.

Growth Potential in the UAE’s Food Services Sector

Maha Al Gargawi, Vice President of Business Advocacy at Dubai Chamber, highlighted the resilience and growth opportunities in the UAE’s food service industry, which is expected to exceed $23.2 billion this year and reach $52.7 billion by 2030.

As the dining sector continues to navigate global economic pressures, the focus remains on balancing affordability, quality, and sustainability to meet the expectations of a growing customer base.

News Source: Khaleej Times