UAE Strengthens Tourism Sector with Strategic Investments and Sustainable Growth

These developments are part of a national strategy aimed at reinforcing the UAE’s position among leading global tourist destinations.

The United Arab Emirates has achieved notable progress in the tourism sector, both in attracting visitors from around the world and in drawing investment supported by a competitive business environment.

These developments are part of a national strategy aimed at reinforcing the UAE’s position among leading global tourist destinations.

The country has introduced incentives to encourage investment and support entrepreneurship and innovation in a sector experiencing steady growth, underpinned by its natural, social, and legislative assets. These include its strategic location linking East and West, diverse landscapes such as deserts, oases, mountains, valleys, plains, and beaches, economic and political stability, a society based on tolerance and coexistence, year-round events supported by strong infrastructure, and a range of accommodation options.

As a result, the UAE has achieved prominent positions in global tourism rankings, including being among the top seven destinations for international tourist spending and ranking first globally in several competitiveness indicators related to aviation and travel, notably the quality of air transport infrastructure.

The tourism and travel sector reported growth in the first half of 2025, with hotels welcoming more than 16 million guests. By mid-year, the UAE had 1,243 hotel establishments offering over 216,000 rooms, and 16 new hotels were added to the market during 2024.

The ‘World’s Coolest Winter’ campaign, launched in 2025 under the slogan ‘Our Winter is Entrepreneurial’, highlights incentives and support measures for investment and tourism entrepreneurship.

The UAE has further developed its tourism sector through initiatives such as the National Tourism Charter, the UAE Hospitality Summer Camp initiative, support for domestic tourism, promotion of new destinations, increased international engagement with global tourism organisations, and the integration of tourism concepts into educational curricula.

The Ministry of Economy and Tourism is implementing digital projects under the UAE Tourism Strategy 2031, including electronic linking of hotel establishment data with local tourism authorities. In 2026, the ministry plans to introduce projects aimed at diversifying tourism products, accelerating digital transformation, and embedding sustainability across tourism services.

Over the past decades, government entities, Emirati investors, and international investors have contributed to infrastructure development, including airlines, airports, hotels, and tourism facilities, alongside the creation of modern tourism products, cultural experiences, and heritage programmes.

The tourism sector continues to grow, supported by ongoing expansion of hospitality infrastructure and public-private collaboration to maintain service standards, align hotel classifications with benchmarks, and deliver value to visitors.

The UAE offers various facilitation measures for tourism investment, including tax exemptions, 100 percent foreign ownership, access to over 40 free zones, no local sponsor requirement, no minimum capital requirements, no income tax, and full profit repatriation. Other benefits include long-term residency permits, access to skilled labour, a flexible labour framework, and initiatives supporting innovation, advanced infrastructure, and updated policies aligned with global trends.

Since 2021, the UAE has implemented legislative updates and launched the National Tourism Strategy 2031 to strengthen its tourism identity and consolidate its status as a leading destination across the seven emirates. The strategy aims to increase tourism’s contribution to GDP to AED450 billion, attract AED100 billion in investment, achieve annual growth of AED27 billion, and welcome 40 million hotel guests.

Investment figures reflect these measures, with tourism investment reaching AED28.8 billion in 2023, AED32.2 billion in 2024, and projected at AED35.2 billion in 2025.

During the first eight months of 2025, UAE airports handled approximately 102.9 million passengers, a 5.3 percent increase compared to the same period in 2024. International visitor spending reached AED217.3 billion in 2024, up 5.8 percent from 2023, while domestic tourism spending totaled AED57.6 billion, an increase of 2.4 percent year-on-year.

The UAE ranked first regionally and 18th globally in the World Economic Forum’s 2024 Travel & Tourism Development Index (TTDI). The country leads in travel and tourism data provision and air transport infrastructure, ranks second globally in infrastructure and services, and is third in data comprehensiveness, efficiency of air transport services, and travel and tourism policy and infrastructure.

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