Investment Surge in UAE's Tourism Sector Sparks Growth

UAE’s tourism sector draws steady investment amid growth push

Challenges remain, including the need to diversify beyond luxury and ensure long-term sector growth.

The UAE is steadily reinforcing its role as a key destination for tourism-related investment, supported by a stable investment environment, expanding infrastructure, and policy frameworks aimed at growing the sector, according to the Emirates News Agency.

The country’s tourism industry has seen a rise in investment activity, spanning hotel developments, entertainment projects, and sustainability-focused initiatives tied to its broader green economy agenda. Public-sector entities continue to shape the sector’s direction through new destination projects and partnerships with the private sector, though challenges remain in diversifying offerings beyond luxury, WAM reported.

The National Tourism Strategy 2031 outlines the UAE’s ambition to become one of the world’s top tourism markets. The plan targets Dh450 billion in tourism GDP, Dh100 billion in new investment, and 40 million hotel guests annually by 2031.

Recent figures show some progress toward these goals. In 2024, hotel revenues reached Dh45 billion, up 3% from the previous year, while occupancy rates rose to 78%, among the highest regionally. The UAE ranked first in MENA and 18th globally on the 2024 Travel & Tourism Development Index by the World Economic Forum, according to WAM.

Still, observers say the UAE is evolving from simply attracting visitors to integrating culture, entertainment, and sustainability into the tourism experience. A recent report by consulting firm Arthur D. Little noted a shift toward offering more immersive, experience-driven tourism — though the extent to which this benefits the broader economy remains a subject of debate.

Speaking to this trend, Mohamed Al Rais, Honorary Chairman of Dubai Travel and Tour Agents Group, said that recent projects have expanded the country’s tourism footprint, but also pointed to the need for continued innovation to remain competitive globally.

Hosni Abdelhadi, CEO of Carlton Hotel and Suites UAE, added that while investor confidence remains high, sustaining momentum will require ongoing infrastructure development and clearer long-term planning across emirates.