Tourism development in the UAE: why it is important for investors

Let's be honest, tourism in Dubai is growing quite fast. If you turn to statistical data, you can see the following: in 2019, the UAE was not even in the top ten countries with income from tourism. But already in 2022, the emirates were able to break into fourth place. At that time, the income amounted to about $ 61 billion. Over time, the growth did not stop. For example, in 2023 the tourism sector increased by 26%.

Factors that have influenced the growth of tourism in the UAE

• One of the points in the master plan for Dubai 2040 states that in six years, the flow of tourists will be at least 40 million per year.
• Recently, there has been a strong marketing campaign that has improved the image of the UAE.
• The government of Dubai and other emirates has focused on building tourism infrastructure.
• Last year, the value of events in Dubai reached $44.7bn. The emirate has long been an ideal platform for event tourism. The industry of exhibitions, conferences and other events is expected to grow by 8.5 per cent in six years.
• Dubai also aims to become a global centre for medical tourism.
• In 2023, Dubai Mall became the most visited destination in the world with around 105 million visitors. Undeniably, the mall is still a major contributor to the development of shopping tourism.

What large-scale projects develop tourism in the UAE

The UAE government comes up with new ways to attract holidaymakers every year. The construction of the following projects will have a significant impact on the tourism industry and will also have a positive impact on the country's economy.

• An air taxi is scheduled to be launched in 2026. It will make it possible to travel from Dubai to Abu Dhabi within half an hour. This is twice as fast as it is now. The company developing the project plans that soon the flying taxi will be as familiar to Emirati residents as a bus.
• Also in Dubai it is planned to create the largest artificial reef in the world (Dubai Reefs). It will be home to a variety of corals and fish and, of course, will attract the attention of many tourists. Moreover, there are plans to do everything possible to make people interested in the new attraction. For example, build an ocean science centre nearby and create entertainment infrastructure. The project will be fully ready by 2027.

• Everyone is probably aware of the construction of a casino in Ras Al Khaimah. It is planned that by 2030 its presence in the emirate will increase the tourist flow by 5 times. And property prices in Ras Al Khaimah will probably jump from 30% to 50%.
• An entire city built around Al Maktoum Airport is likely to change the property market. Once completed, the area in which it will be located (Dubai South) could become the second centre of Dubai.

Cresswell Residences, a residential complex located in Dubai South, will be a dream come true for aesthetics and comfort lovers. Developed internal infrastructure: rooftop garden, swimming pool, fitness centre, etc.

Handover: 4th quarter 2025

Price: from AED 850 000

Why tourism development in the UAE is important for investors

• Recently, many tourists prefer to stay in rented apartments rather than hotels. There are reasons for this: in this way you can feel at home for a short time, and the cost is often cheaper. For the investor, the tourist season is a good chance to rent out their own accommodation and thus gradually cover the cost of the property.
• The more events will be held in Dubai and other emirates, the more demand for short-term rental apartments. In this case, property owners will be able to count on higher returns due to increased demand.
• At the moment, many people come to the emirates for medical treatment. Usually they do not stay in hotels, but rent apartments, as the period of stay in the country can be quite long. Such tourists most often choose apartments in new buildings focused on a healthy lifestyle. For example, in those complexes where the focus is on internal infrastructure with wellness zones and spa procedures.

Cove Edition I is an ideal project with apartments that are perfect for renting out to tourists. The residential complex is located in the Dubailand neighbourhood, where there is all you need for a comfortable life. The internal infrastructure of the complex will please owners and guests: rooftop swimming pool, spa, sauna, recreation area and green gardens.

Handover: 2nd quarter 2026

Price: from AED 900 463

Shopping tourism does not exist on its own. It is closely linked to industries such as short-term rentals, restaurants and the entertainment industry. Therefore, shopping tourism has a complex impact on the development of the Emirate's economy.

Interesting facts about tourism in Dubai instead of a conclusion

• The emirate welcomed more than 17 million tourists in 2023.
• Spending holidays in Dubai is extremely popular among citizens of India and Oman. Tourists from Russia occupy the fifth place.
• According to WTTC*more than 23,000 jobs will be created in the UAE tourism industry in 2024. Hotel and accommodation management assume that tourists will spend about $55bn this year.
• In Abu Dhabi they are planning to build an island of healthy lifestyle (a note to everyone who goes on a diet from Monday every week). Now you can't get away with it!

*WTTC - World Travel and Tourism Council