Understanding Dubai's coffee obsession

While the trend of Dubai chocolate filled with knafeh and pistachio continues to monopolize TikTok, captivating users with mouth-watering tastings, another protagonist is rewriting the rules of taste: coffee. Walking through Dubai, you’ll see Emirati families sharing a pot of qahwa (traditional Arabic coffee) while sleek minimalist cafés serve cold brew in high-tech environments. It’s not just about Instagram-friendly aesthetics; the coffee market is growing rapidly. According to Statista, it is expected to reach a revenue of $1.25 billion by 2025, with $930 million generated solely from out-of-home consumption. This growth is supported by a strong coffee culture, even though per capita consumption (3.82 kg annually) is lower than in European countries like Finland and Italy. The coffee culture in the UAE is centered around social experiences, with Dubai leading coffee innovation in the Middle East.

The café culture in the UAE differs from that in the West. While in Europe, coffee is seen as a quick break, here it is a sharing and networking phenomenon that is growing rapidly, fueled by a mix of small and large entrepreneurs opening independent cafés, major chains, and venues specializing in luxury experiences. As Shallom Berkman, founder of Urth Caffe (a California-based chain) in Dubai, states, “The Kingdom of Saudi Arabia and Dubai were naturally the best next steps for our international growth.” One of the main drivers of this growth is specialty coffee, which accounts for 10% of the market and is expanding rapidly, thanks to the DMCC Coffee Center. Founded in 2019 by the world’s leading economic hub and an international center for trade, economy, and innovation, it has revolutionized the sector with roasting spaces and advanced bean storage technologies, meeting global standards and fostering strong growth, with projections of an annual increase of 8.4% until 2029.

The growth of Dubai’s coffee market has also reached digitalization, with the launch of the COFE App, a platform for ordering takeaway coffee, showcasing the region’s complete dedication to the beverage. Businesses exploring the limits of coffee sales are diverse: local companies like Raw Coffee Company enhance the purchasing experience by offering customized blends, while boutique cafés like Seven Fortunes celebrate tradition. Dubai’s coffee culture is also adapting to new trends: coffee raves have taken over the music scene and were featured at the World of Coffee 2025 event at the Dubai World Trade Centre. Meanwhile, concept stores, such as cafés inside Zara stores or in the middle of the desert, offer an equally immersive but more photogenic experience. Meanwhile, institutions like Burj Al Arab offer unique delights such as the golden cappuccino, a luxury that attracts both high-end visitors and curious occasional consumers, while other identities celebrate the union of different cultures, such as Danilo Ponzone's Arab-Neapolitan Caffè Riviera. 

As Dubai’s coffee sector grows, the market may seem saturated. The region remains a hub of innovation in the Middle East, yet competition is fierce, operational costs are skyrocketing, and many brands struggle to stand out. In a city with 3.6 million inhabitants, there is one café for every 750 people, with over 4,800 active establishments. This scenario raises questions not only about the long-term sustainability of the market but also about the true value of coffee, a product that represents the country’s culture. Global chains like Starbucks dominate the UAE’s mass market thanks to brand recognition, standardized offerings, a vast network of strategic locations, and a dominant presence in shopping malls and business districts. Present since 2000 with over 250 locations, the brand continues to expand. Following the specialty coffee and “luxurization” of coffee in Dubai trend, Starbucks has elevated the customer experience in the region, even convincing skeptics to try the American chain’s original offerings in the Middle East.

Despite the dominance of major chains, Dubai maintains its heart in traditional coffee. Many locals and enthusiasts prefer authenticity and a personalized experience in local cafés or artisanal roasteries that combine excellence, exclusivity, and originality—values that global chains struggle to convey despite their powerful marketing. Tourists account for more than half of coffee sales, a segment that independent cafés can tap into with strategic locations and experiential offerings. The premiumization trend is also fueling market growth, with specialty coffee expanding rapidly, while mass-market chains maintain a 40% share. Government support, such as the absence of tariffs on green coffee and the reduction of VAT for the F&B sector, is creating a favorable environment for local businesses. While global chains dominate the market, Dubai is rediscovering the true essence of coffee through tradition.