The UAE tourism sector… lucrative returns provided by investment facilities

The UAE has achieved exceptional leaps in the tourism sector, whether in terms of tourist attraction and the continuous increase in the movement of visitors to the country from all over the world, or in terms of attracting investment in this sector, due to the lucrative returns it provides through distinguished investment facilities.

The UAE has provided great incentives to increase investment attraction and stimulate entrepreneurship and innovation in this sector, which is witnessing a growing growth based on strong tourist attractions, foremost among which are the natural, social and legal components that have made the UAE an ideal destination for spending the best times throughout the year, and which increase remarkably in the country’s distinctive mild winter season. These components are evident in the country’s strategic location linking the East and the West, and the vast biological diversity that blends deserts, oases, mountains, valleys, plains, and beaches. In addition to economic and political stability, a societal culture based on the values of religious tolerance and acceptance of others, in addition to various events throughout the year supported by strong infrastructure, with wide accommodation options.

Advanced centers

As a result, the UAE achieved leading positions in the tourism sector, ranking among the top seven global destinations in terms of international tourist spending. It also ranked first globally in a number of competitive indicators related to the aviation and travel sector, most notably the air transport infrastructure quality index.

The tourism and travel sector in the country also achieved strong growth rates during the first half of this year, as hotel establishments received more than 16 million guests, with 1,243 hotel establishments containing more than 216 thousand rooms, by the end of the first half of this year, and 16 new hotels entered the Emirati markets during the year 2024.

The “The Most Beautiful Winter in the World” campaign, which is launched this year under the slogan “Our Winter is Leadership,” highlights the incentives and facilities that support investment in the sector and advance the work of pioneers in this field.

National initiatives

The UAE has strengthened the elements of tourism attraction and raised investment returns in this sector by launching national initiatives and projects, the most prominent of which were the National Tourism Charter Initiative, the Summer Camp Initiative for the Hospitality Sector, supporting domestic tourism and promoting new destinations, enhancing the international presence in global tourism organizations, and the policy of integrating tourism into educational curricula.

The Ministry of Economy and Tourism is currently working on implementing a group of digital initiatives and projects within the framework of the National Tourism Strategy 2031, including a project to electronically link hotel establishment data with local tourism entities. In 2026, it also seeks to develop new projects based on the development and diversification of tourism products in the country, and promoting digital transformation in the tourism sector by adopting innovative solutions and modern technologies, in addition to localizing sustainability in all tourism activities and services.

Facilities and incentives

The tourism sector in the Emirates is witnessing broad growth, enhanced by the significant expansion of tourism and hotel infrastructure projects, which supports investor confidence and opens new horizons for growth for them.

The UAE provides broad facilities to entrepreneurs to develop their tourism investments, such as tax exemptions, and allowing foreign investors to own 100% of their businesses and projects, while providing flexibility in choosing the appropriate free zone to establish their companies from among more than 40 free zones spread across the country’s lands, and providing opportunities to practice all economic activities, with no requirement for the presence of a citizen agent, without a minimum capital, and without income tax and transfer of full profits, in addition to long-term residence permits for periods ranging from five to 10 years, in addition to Ease of contracting with professional workers.

With the aim of enhancing the attraction of entrepreneurs in the sector, and ensuring the entry of investors without any complications or challenges, legislative amendments were launched, the largest in the history of the country, since 2021, where legislation and laws were updated and developed to ensure the ability of the various economic sectors to keep pace with future transformations. The UAE government also launched the National Strategy for Tourism 2031, which aims to raise the country’s position as the best tourism identity around the world.

The strategy will work through cooperation and coordination with a group of partners from the government and private sectors to implement its goals during the coming years, including raising the tourism sector’s contribution to the gross domestic product of the national economy to 450 billion dirhams, with an annual increase rate of 27 billion dirhams, attracting new investments worth 100 billion dirhams to the tourism sector in the country, and attracting 40 million guests in hotel establishments.

Exceptional numbers

The extensive investment facilities in the tourism sector were translated into reality in exceptional numbers, with which the UAE achieved leading positions regionally and globally. The volume of tourism investments attracted by the country during 2023 reached 28.8 billion dirhams, and increased to 32.2 billion dirhams during 2024, and is expected to reach 35.2 billion dirhams during 2025.

During the first eight months of 2025, the country’s airports received about 102.9 million passengers, with a growth rate of 5.3%, compared to 97.9 million passengers for the same period in 2024, while the total spending by international visitors reached 217.3 billion dirhams during 2024, with a growth rate of 5.8% compared to 2023, and 30.4% compared to 2019. The total spending also reached Domestic tourism during the past year amounted to 57.6 billion dirhams, an increase of 2.4%, compared to 2023, and 41% compared to 2019.

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Travel and tourism data

The UAE ranked first regionally and 18th globally in the Travel and Tourism Development Report for 2024, issued by the World Economic Forum. It ranked first globally in the index of providing travel and tourism data, and in the “infrastructure for the air transport sector” axis, and ranked second globally in the infrastructure and services index, and third globally in the index of comprehensiveness of travel and tourism data, as well as in the efficiency index of air transport services, and in the index of policies and enabling conditions for tourism and travel.

• Hotel establishments received more than 16 million guests by the end of the first half.

• The UAE ranked among the top 7 global destinations in terms of international tourist spending.