Dubai, widely recognised as the world’s culinary capital, is now experiencing unprecedented growth and intense strain. The city has firmly established itself as a global dining destination, offering one of the world’s most diverse culinary landscapes – from budget-friendly eateries to extravagant experiences featuring gold-dusted dishes and underwater dining. According to the Dubai Gastronomy Industry Report 2024, as cited by leading global publications, the city is now home to over 13,000 restaurants and ranks second globally, behind Paris, in terms of culinary diversity. However, the rapid growth has resulted in oversaturation, creating significant challenges for the sector. Operators face intense competition that is testing the sustainability of Dubai’s fast-paced growth model.
Studies and reports regarding Dubai’s gastronomy industry reflect remarkable momentum. As per DET, Dubai issued nearly 1,200 new restaurant licences in 2024 alone, reinforcing its position as the leading gastronomy hub in the region.Dubai dominates the UAE’s fine-dining landscape, featuring 106 entries in the 2024 Michelin Guide, including multiple two-star and one-star restaurants. The city further elevated its culinary reputation in 2025 by earning its first-ever three-star Michelin recognition. Yet, the city also sees increasingly stiff competition, with casual and street food dining also gaining popularity.
Despite the remarkable growth, surging operational costs have ranked highest globally, while expenses for staff, supply chains and utilities have risen significantly. Smaller businesses and new entrants, find themselves compelled to invest in extravagant concepts and marketing merely to retain visibility. Restaurants are increasingly dependent on delivery apps, which charge high commissions, further squeezing already thin margins.
The result of these increasing costs is a notable rise in business closures. While exact closure rates are not publicly disclosed by Dubai’s authorities, industry insiders warn of a mounting failure rate across the city. Even in well-located areas, it is common to see empty tables during peak hours, a signal of demand outpaced by supply. Many restaurateurs are opening venues backed by investor capital without sufficient long-term operational planning. According to the Dubai Gastronomy Report, casual and family dining outlets are thriving, but fine dining venues face stiffer challenges in maintaining profitability under relentless cost pressures despite accolades.
Dubai’s over-saturated restaurant market also carries broader implications for infrastructure and labour. Traffic congestion often deters customers from travelling across the city, and rising dependency on app-based delivery has pushed gig economy workers to the brink. In 2024, 17 food delivery riders were involved in fatal road incidents in Dubai, drawing attention to the growing pressures on those supporting the city’s fast-paced dining ecosystem. Meanwhile, restaurants struggle to differentiate themselves in a city where novelty quickly becomes the norm, pushing businesses towards increasingly expensive marketing tactics, influencer partnerships, and design gimmicks.
Dubai’s gastronomic success is undeniable, but it now stands at a crossroads. The industry’s rapid expansion is a double-edged sword, drawing international acclaim while also testing the resilience of operators, workers, and consumers alike. While its diverse population and tourist base fuel continued demand, long-term sustainability will depend on whether businesses can innovate without succumbing to unsustainable cost structures. If the city can balance creativity with commercial viability, Dubai may yet solidify its ambitions of becoming the world’s leading food capital. For now, however, its restaurant scene must grapple with the realities of market saturation and the financial risks that come with relentless growth.
