UAE: Gateway to the Middle East for international hotel brands

With a large expatriate population and long-standing international hotel brands contributing to a vibrant specialty coffee scene, the UAE has become an important gateway for coffee shops seeking growth in the wider Middle East and is one of the most developed markets in the region

Cafe Planet in Dubai Hills Estate | Source: DASH Hospitality Group

The UAE is a global tourism hub and one of the major tourist destinations in the Middle East. The country, with a population of 9.9 million, 80 percent of whom are expatriate, has one of the most developed coffee shop markets in the region, with long-standing international coffee chains providing the basis for a vibrant specialty coffee scene.

The UAE’s total branded coffee shop market grew by 3.9% to 1,394 over the past 12 months, making it the Middle East’s second-largest market, although far behind Saudi Arabiaof 3,556 stores.

US-based Dunkin’ entered the UAE in 1997 with a store in Dubai, before Western chains followed suit in the 1990s and early 2000s. Today, international coffee chains, led by starbucks With more than 250 stores, accounting for more than 70% of the market share, it has laid the foundation for the booming boutique operator market.

Dubai is the center of coffee innovation in the UAE, with most brand chains and the largest specialty coffee roaster in the Middle East, coffee planet. The city is also home to the Dubai Multi Commodities Center (DMCC) Coffee CenterA “global center for specialty coffee”, it aspires to make the UAE the most important location for the coffee trade in the region.

Japan’s % Arabica currently operates 13 stores in the UAE, while Germany’s Barn Coffee Roasters The first international store opened in Dubai in October 2021, with UK-based EL&N opening in Dubai in early 2022.

Likewise, the success of domestic chains Slash Coffee, Shot Specialty Café and Joud Coffee underscores the growing demand for and appreciation for specialty coffee.

Sixty-two percent of consumers surveyed by World Coffee Portal felt that Western chains had had a positive impact on UAE coffee culture, highlighting the positive synergy between international and domestic coffee shops.

However, industry leaders warn that the market has become increasingly crowded and competitive, which some fear could soon lead to saturation. The UAE market is expected to grow by just 3.9% over the next five years, one of the lowest growth rates among developed markets in the region.

Nonetheless, hotel brands that can stand out are expected to succeed in the UAE.Showcasing growth potential for newcomer, Danish coffee and juice chain joe and juice Debuting in the UAE in September 2022, it will bring its unique menu of health-focused food and beverages to the Middle East.

French and Japanese inspiration fox cafe Also in response to strong consumer demand for a refined, boutique specialty café concept, it will be launched in the UAE in early 2023.

 

Middle East Cafe Project 2023 is an in-depth study by World Coffee Portal of the top 20 performing coffee shop brands in the region.

The report includes market size and growth forecasts, Covid-19 impact analysis, industry insights, and consumer research of over 2,000 coffee shop visitors in UAE and Saudi Arabia.

For more information and to purchase reports please contact:

Ruth Thompson, Chief Commercial Officer – rthompson@allegra.co.uk