A Guide on Hospitality Business Sector in the UAE

by Zaara 31, Aug 2020

A Guide on Hospitality Business Sector in the UAE

Over the last few years, the United Arab Emirates has emerged as one of the world’s leading travel and tourism destinations. The hospitality industry has been re-defined through creativity and innovation, and now presents numerous investment opportunities for both regional and foreign companies wishing to establish themselves in the region.

The hospitality sector in the UAE is a significant contributor to the United Arab Emirate’s economy and a significant employer. According to the Knight Frank Report, the hospitality market in the UAE in 2018 is estimated to have contributed over Dh150 billion in UAE GDP and provides almost 570,000 jobs in 2017. Dubai is now measured as one of the primary luxury destinations in the world; the city has imprinted itself a reputation for attracting wealthy tourists.

Overview of Hospitality Sector in the UAE

The UAE’s hospitality industry has experienced steady growth over the past decade. From the year 2007 to 2017, the sector’s direct contribution to the country’s Gross Domestic Product increased by 138% with sectoral employment growing by 119% over the same period. The key players in the international hospitality chains are present in the UAE. These include American hospitality giants such as Hyatt, Hilton, and Marriott.

While the U.A.E. has attracted international firms, several Emirati companies play a vital role in the country’s hospitality industry, such as DAMAC Properties, Emaar Properties, and Jumeirah.

UAE’s Investment in the Hospitality Sector

Here are a few pointers on the investment made by the UAE in the Hospitality sector in different parts of the world.

  • In the year 2007, Dubai World invested billions of dollars in CityCenter, a giant hotel and entertainment complex in Las Vegas
  • Abu Dhabi Investment Authority (ADIA) has invested heavily in the large-scale hotel in the Marriott Marquis centre of Washington DC and also in the development of projects in the downtown area
  • In November 2018, it was stated that the Park Lane Hotel in New York City, a luxury 46-story hotel adjacent to Central Park, would be sold to Mubadala.
  • The Investment Corporation of Dubai has also invested in hospitality in the United States. Its investments include the W Hotel in Washington, D.C. and the Mandarin Oriental in New York.

Role of the Hospitality Sector in Expo 2020 Dubai

The tourism and hospitality sector in the Emirates is growing and will get more acceleration leading to the Expo 2020 Dubai to meet the rising demand of the visitors travelling to Dubai from over 192 countries. According to the reports, 27,000 additional hotel rooms have already been added by the year 2018 and is anticipated to reach 91,000 by the end of 2019, built to offer accommodation services to 25 million visitors.

By this, we can say that the demand for hospitality is in full swing, and the GCC hospitality marketplace is about to experience a huge change after the 2020 Expo. Setting up a hospitality business in the UAE at this point stands to be a perfect option, and if you hold an idea regarding the same, go for it.

Start a Business in Hospitality Sector in the UAE

There are many business opportunities in the hospitality sectors in the UAE. Some of them are –

  1. Travel and Tourism Business
  2. Hotel Business
  3. Tour operator
  4. Room Service Outsourcing
  5. Cleaning Service

The procedure to set up a business in any of the company mentioned above sectors is same as any other business setup. The government of the UAE has made this procedure simple and straight-forward. With just a few steps, you will be officially permitted to start the business.

But in a foreign country, it can be challenging to understand the legalities and incorporate the business. This is where business setup consultants come into the picture. They will help you from A to Z of registering the company so that you don’t have to face any difficulties.

We at Commitbiz can help you start a business in the booming hospitality sector in the UAE. Our services include business incorporation, business license, accounting and bookkeeping, corporate secretarial service, IP, and much more. Our specialists have years of experience in this field and can make this process hassle-free. Contact us today- we’d be happy to assist you.


What was the contribution of the hospitality market to the UAE’s GDP in 2018?

It contributed around Dh 150 billion.

Where did the Investment Corporation of Dubai invest in USA’s hospitality sector?

 It invested in W Hotel in Washington D.C. and the Mandarin Oriental in New York.

What are the business opportunities in the hospitality sector in UAE?

The opportunities are hotel business, travel & tourism business, tour operator, cleaning service, room service outsourcing, etc.

Which are the prestigious art museum in Dubai?

They are the Dubai Louvre, Guggenheim Museum, etc.

From which countries does Dubai welcomes the most tourists?

The tourists are mostly from India and China.

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