Dubai residents are mindful of prices when they dine out, favoring affordable fast food over pricier fine dining and other options like all-day and casual dining. This preference for budget-friendly meals highlights the significant role of fast food in Dubai's dining scene, as indicated by a recent study from JLL.
Fast food outlets in Dubai have experienced rapid growth due to increasing demand in recent years. In 2021, there was a 25% annual increase in the number of fast-food eateries, followed by a faster rate of 35% in 2022. Additionally, the market share of fast food in Dubai has been steadily rising, reaching 33% in 2021, 34% in 2022, and climbing further to 36% in the first half of 2023. A survey conducted by the UAE Restaurants Group (UAERG) in 2023 highlighted that the higher cost of living in the Emirates compared to other cities influences residents' dining preferences.
Dining out is increasingly popular among Dubai residents, with a steady rise in frequency. According to the second edition of the Dubai Gastronomy Industry Report by the Dubai Department of Economy and Tourism (DET) in January 2024, residents now dine out three times a week compared to 1.8 times a week in the previous year. Dubai ranks second worldwide in overall restaurant density, with areas like Dubai Marina, Out Metha, and Downtown emerging as top dining destinations.
Quoting a Modor Intelligence study, JLL projects that the food service market in the UAE will reach $20 billion (Dh73.32 billion) by 2024 and $44 billion (Dh161.5 billion) by 2029. This growth is attributed to a significant increase in the population of the UAE over the past few years, benefiting the dining-out market as a whole.
All-day dining gaining
JLL noted that the convenience factor has led to the growing popularity of all-day dining, casual dining, and fast-casual dining in Dubai and Abu Dhabi. In 2022, new eateries offering all-day dining in both cities saw a 40% increase, while fast casual restaurants experienced a 40% growth rate.
Similarly, the demand for fine dining is on the rise, fueled by the opening of more hotels in Dubai. In 2022, the city witnessed nearly a 20% increase in new fine dining establishments, coinciding with a rise in the number of 5-star hotels from 59,000 keys in 2021 to over 66,000 in 2023, indicating a 12% growth.
JLL emphasized that the growth of fine dining isn't solely linked to hotel expansions. Instead, it reflects a significant shift in Dubai's culinary landscape, with fine dining establishments emerging in new areas beyond traditional locations like Dubai International Financial Centre (DIFC) and Palm Jumeirah. The Al Wasl area, in particular, has become a notable player in the fine dining scene, offering unique concepts that appeal to both residents and tourists seeking high-quality culinary experiences.
News Source: Khaleej Times
