Image credit: WAM/Website
The UAE has recorded exceptional strides in its tourism sector, strengthening its position as one of the world’s most attractive destinations for visitors and investors alike.
Growth in international appeal, rising visitor spending and expanding infrastructure have combined to deliver strong investment returns, underpinned by a highly competitive business environment.
Read more-UAE tourism sector hits Dhs257.3bn in 2025, breaks visitor records
These achievements form part of an integrated national strategy designed to reinforce the UAE’s standing among the world’s leading tourist destinations, according to a report by the Emirates News Agency (WAM). The strategy reflects a coordinated approach that links tourism growth with investment facilitation, infrastructure development and long-term economic diversification.
The UAE has introduced a wide range of incentives aimed at attracting investment and stimulating entrepreneurship and innovation in a sector experiencing sustained growth. The tourism industry continues to benefit from powerful drivers rooted in the country’s natural, social and legislative strengths, which together have positioned the UAE as a year-round destination.
Chief among these advantages is the country’s mild and distinctive winter season, which has helped cement its reputation as a preferred destination during periods when demand softens in other markets. This seasonal appeal is supported by the UAE’s strategic location linking East and West, offering accessibility to a broad range of global markets.
The country’s rich biodiversity further enhances its appeal, combining deserts, oases, mountains, valleys, plains and beaches within a single destination. These natural assets are complemented by economic and political stability, a society grounded in values of religious tolerance and coexistence, and a calendar of year-round events supported by robust infrastructure.
A wide range of accommodation options, from luxury to mid-market offerings, has also contributed to the sector’s resilience and attractiveness for investors seeking diversified returns.
Global rankings underscore sector strength
As a result of these advantages, the UAE has secured leading positions in global tourism rankings. The country has been placed among the world’s top seven destinations for international tourist spending and ranked first globally across several competitiveness indicators related to aviation and travel.
In particular, the UAE leads the world in the quality of air transport infrastructure, reflecting decades of sustained investment in airlines, airports and connectivity. These rankings have reinforced the country’s global tourism profile and supported further inflows of capital into the sector.
The tourism and travel sector recorded strong growth in the first half of the current year, with hotels welcoming more than 16 million guests. By the end of the first half, the UAE had 1,243 hotel establishments offering over 216,000 rooms.
The expansion of hotel capacity continued during 2024, with 16 new hotels entering the market. This growth reflects confidence in sustained visitor demand and highlights the pace at which tourism infrastructure continues to scale in response to market opportunities.
Campaigns and initiatives support entrepreneurs
The “World’s Coolest Winter” campaign, launched this year under the slogan “Our Winter is Entrepreneurial,” has played a key role in highlighting incentives and facilitation measures available to investors. The campaign focuses on supporting tourism entrepreneurs and advancing business opportunities across the sector.
Beyond promotional efforts, the UAE has strengthened its tourism appeal through a series of national initiatives and projects. These include the National Tourism Charter, the UAE Hospitality Summer Camp initiative, expanded support for domestic tourism, and the promotion of new destinations across the country.
The government has also increased international engagement with global tourism organisations and integrated tourism concepts into educational curricula, reinforcing long-term sector development and workforce readiness.
The Ministry of Economy and Tourism is currently implementing a suite of digital initiatives under the UAE Tourism Strategy 2031. These projects include efforts to electronically link hotel establishment data with local tourism authorities, enhancing coordination, transparency and efficiency across the sector.
Looking ahead to 2026, the ministry plans to develop new projects aimed at diversifying tourism products and enhancing visitor experiences. These initiatives will focus on accelerating digital transformation through innovative solutions and advanced technologies, while embedding sustainability across tourism activities and services.
Long-term investment and infrastructure development
Over several decades, the UAE has enabled extensive investment in tourism by government entities, Emirati investors and international investors. This investment has spanned major infrastructure such as airlines, airports, hotels and distinctive tourism and leisure facilities.
In parallel, the country has developed modern tourism products, premium experiences, and cultural and heritage programmes, particularly over the past decade. These efforts have broadened the sector’s offerings and supported its evolution into a diversified, experience-driven industry.
The tourism sector continues to witness broad-based growth, supported by the large-scale expansion of tourism and hospitality infrastructure projects. These developments have bolstered investor confidence and opened new horizons for growth.
Government tourism authorities are working closely with private-sector companies to accelerate sectoral growth and establish global partnerships. These efforts aim to ensure the highest standards of service quality, align hotel classifications with service benchmarks, and deliver value that meets visitors’ expectations.
The UAE offers extensive facilitation measures for entrepreneurs seeking to develop tourism investments. These include tax exemptions, 100 per cent foreign ownership of businesses, flexibility in selecting from more than 40 free zones, and the ability to conduct economic activities without the requirement of a local sponsor.
Additional advantages include no minimum capital requirements, no income tax and full profit repatriation, creating a highly attractive operating environment for global investors.
Residency, talent and legislative reform
These incentives are complemented by long-term residency permits ranging from five to ten years, ease of recruiting skilled labour, and a flexible labour framework. Together, these factors position the UAE as a global hub for talent, human capital and innovation.
Further support comes from initiatives promoting innovation and technology, the development of advanced tourism infrastructure and products, and updated policies aligned with global economic trends.
To further enhance the sector’s attractiveness, the UAE introduced the most extensive legislative amendments in its history starting in 2021. These reforms updated laws and regulations to ensure economic sectors remain aligned with future transformations.
Strategy 2031 targets strong economic impact
The National Tourism Strategy 2031 aims to strengthen the UAE’s global tourism identity and consolidate its status as a leading destination built on the diverse offerings of its seven emirates.
Through coordination between public and private-sector partners, the strategy targets raising tourism’s contribution to national GDP to Dhs450bn, achieving annual growth of Dhs27bn, attracting Dhs100bn in new tourism investments, and welcoming 40 million hotel guests in the coming years.
The impact of these facilitation measures is reflected in record investment figures. Tourism investments reached Dhs28.8bn in 2023, increased to Dhs32.2bn in 2024, and are projected to reach Dhs35.2bn in 2025.
During the first eight months of 2025, UAE airports handled approximately 102.9 million passengers, representing a 5.3 per cent increase compared to the same period in 2024.
International visitor spending totalled Dhs217.3bn in 2024, up 5.8 percent from 2023 and 30.4 per cent compared to 2019. Domestic tourism spending reached Dhs57.6bn, reflecting year-on-year growth of 2.4 per cent and a 41 per cent increase compared to 2019.
In recognition of its performance, the UAE ranked first regionally and 18th globally in the World Economic Forum’s 2024 Travel & Tourism Development Index. The country leads the world in travel and tourism data provision and air transport infrastructure, ranks second globally in infrastructure and services, and third in data comprehensiveness, efficiency of air transport services, and travel and tourism policy and infrastructure.
Together, these indicators underscore the UAE’s position as a global tourism powerhouse and a leading destination for long-term investment.
