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Dubai’s Restaurant Boom Faces Sustainability Concerns

Undisclosed closure rates intensify concerns over the sector’s ability to withstand rising costs.

People dine at Ravi restaurant in Satwa district of Dubai, United Arab Emirates, Monday, June 9, 2025. (AP Photo/Altaf Qadri)
Executive chef Torsten Vildgaard, left center, and his staff chop nuts at FZN Restaurant on Palm Jumeirah in Dubai, United Arab Emirates, Friday, June 13, 2025. (AP Photo/ Fatima Shbair)
Executive chef Torsten Vildgaard, center, and his staff chop nuts at FZN Restaurant on Palm Jumeirah in Dubai, United Arab Emirates, Friday, June 13, 2025. (AP Photo/ Fatima Shbair)

Overview

  • Dubai’s dining scene has expanded to about 13,000 venues, giving it the second-highest restaurants-per-capita ranking worldwide.
  • The emirate issued nearly 1,200 new restaurant licenses last year despite warnings of market oversaturation.
  • Prime-area rents exceeding $100 per square foot have eroded profit margins for many operators.
  • Traffic gridlock is deterring dine-in customers and prompting greater dependence on delivery apps.
  • Safety concerns rose after 17 food couriers died in accidental incidents reported last year.