The food and beverage (F&B) sector in Dubai is poised to see a major shift, with the city’s newly developing walkable zones and specially created distinct dining areas predicted to emerge as the new hotspots amidst scarce and high-priced real estate posing major challenges to hospitality majors planning entry or expansion into the emirate, sector experts said.
The land and space-related issues are projected to aggravate further as a host of international and regional big brands in F&B are either in the process or currently finalising plans for entry or expansion into Dubai, they said.
In Q4 alone, Dubai’s beachfront scene witnessed the opening of several high-profile venues, including J1 Beach featuring 13 luxury dining establishments such as Gigi Rigolatto, Bâoli Dubai, and Sirene Beach by Gaia, while existing players such as Bluewaters going for major expansions with new offerings.
“Looking ahead, 2025 and beyond promise an exciting evolution of the UAE’s F&B scene,” David Richardson, Founder of SHP Portfolio, a UAE-based F&B real estate advisory firm, told Arabian Business.
“While we cannot disclose specific names, a wave of global and regional concepts is set to elevate the region’s dining landscape,” said the top honcho of SHP Portfolio, which boasts of a long list of international and regional clients, including advising in the past high-profile F&B brands such as Island Hospitality, Permanently Unique Group, Caprice Holdings, and Culinary Arts on their future F&B real estate strategies in Dubai.
Strategic real estate planning
Richardson said strategic real estate planning is emerging as more critical than ever for companies in such a fast-paced market, as restaurateurs must innovate to stand out, offering something unique that resonates.
“We’re seeing much more of an effort towards creating distinct dining destinations that stand out within its trade area opportunity.
“Besides, Dubai’s new ‘Walk Plan’ will also have a huge impact on the opportunity for the F&B sector players,” said the Founder of SHP Portfolio, which is currently advising a number of sector companies to enter or expand into Dubai.
He said walkable zones will inspire more creative dining concepts, more vibrant street-level experiences and much more dynamic leisure destinations.
Industry insiders said several existing and new players are already contemplating either moving or opening new outlets in the newly created walkways.
Opening new units in specially created dining destinations is another move currently underway in the sector as this could help companies to create a buzz, attracting customers in hordes, they said.
Richardson said Dubai is already witnessing an infrastructure challenge with increasing road pressure, and as a result, a heightened demand for better connectivity and more green space.
“Due to the lack of supply, brands looking to expand or enter the market, whilst needing to be opportunistic, need to think in the medium term and focus on forward-thinking location strategies to anticipate future trends rather than relying on the present landscape.
“The most successful players will navigate complexities by combining a deep understanding of local customers with broader market evolution,” he said.
UAE emerges as F&B hotspot
Industry experts said F&B players are seeing the urgency for experimenting with new locational strategies as the UAE is fast solidifying its position as a global hotspot for F&B innovation and a key lily pad for international brands eyeing global expansion.
With economic challenges in other regions such as rising costs and regulatory changes, such as the UK’s recent increase in minimum wage and national insurance contributions, the industry expects more brands to explore the UAE, they said.
Richardson said many international players are leveraging franchising, licensing, or joint ventures to mitigate risk related to rising real estate and space costs and capitalise on the region’s thriving dining culture and strategic location.
“Securing prime locations is increasingly difficult due to fierce competition. Plus navigating the local acquisition process, property laws and regulations can often be misunderstood or assumed at the early stages, which can impact later parts of the process,” he said.
Industry insiders said real estate decisions are critical for the success of F&B outlets, as property costs are typically the second-highest expense after staffing.
More than the hurry to secure a lease, a sound strategy should be about selecting a location that aligns with customer demand, foot traffic, and market trends, they said.
Richardson said: “The right property choice is an investment that defines success and is not easily reversible, making the role of precise, data-informed decision-making indispensable.”
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