5 min read

Exploring the Hospitality Scene in Dubai

Dubai is known for its luxurious lifestyle, futuristic architecture, and boundless opportunities in the hospitality sector. Let’s take a look at the hospitality scene in Dubai.

Published on
June 19, 2023

Dubai is a cosmopolitan city-state known for its luxurious lifestyle, pristine beaches, futuristic architecture, and, yes, boundless investment opportunities for business. Dubai received 14.36 million international visitors in 2022, making it the most visited place in the Middle East region. In addition, the region has over 100,000 rooms for lodging and supports 400,000 in the hospitality industry.

As you can probably imagine, the high number of visitors and tourists every year means the hospitality industry is thriving. In fact, tourism in Dubai is one of the main sources of revenue generation for the Emirate and is a major contributor towards the economy of UAE.

Let us take a look at why so many people are interested in a business set up in Dubai, particularly in the hospitality sector.

Luxury Hotels

Dubai is the biggest tourist destination in the Gulf region, showing a high rate of growth – and the city-state’s high-end, world-class branded hotels contribute significantly to this growth. The hotel industry generates a revenue of AED 16 billion every year by offering high-end accommodations, Michelin-star dining, and a plethora of leisure activities for visitors.

From the luxurious Burj Arab to the majestic Atlantis, hotels, and hospitality in Dubai can accommodate the preferences of various visitors.

Government Investments

The government of Dubai recognizes that investments in the tourism industry are responsible for the growth of Dubai. To keep visitors coming back year after year, the government of Dubai has invested a huge amount in new attractions, architecture, infrastructure, and events.

These include ensuring all the roads are open, clean, and smooth, state-of-the-art modern architecture, numerous breathtaking visiting and entertainment spots, mouth watering cuisines, and so much more.

Cosmopolitan Lifestyle

Dubai is a hotspot of multicultural lifestyle as people from all over the world come there to live and tour. This is a major reason why the hospitality industry in Dubai is thriving.

The city-state offers a unique blend of traditional Arab culture with an ultra-modern lifestyle. On one side, you will enjoy camel riding in the dunes or camping in the middle of the desert beneath an open sky. On the other, you will see wonders of architecture like Palm Jumeirah, Burj Khalifa, The Green Planet Dubai, and so much more.

Ultimate Shopping Experience

The world’s largest shopping mall is the Dubai Mall, which features all the major international brands in the world. In fact, Apple has its largest showroom in Dubai Mall. Many who come to Dubai come for the high-end lifestyle they get there, and it is predicted that the market for luxury goods in Dubai will reach $3.148 billion by 2027.

People who wish to invest in real estate find Dubai to be a wonderful location due to its state-of-the-art infrastructure, high standard of living, and thriving economy.

Tax-Free Haven


Tax-free shopping for tourists is a beneficial service introduced by the Federal Tax Authority (FTA) in the UAE. With the implementation of a 5% Value Added Tax (VAT) in January 2018, the FTA launched a digital tax-free shopping system in the last quarter of the same year. Tax-free shopping allows eligible tourists to purchase taxable goods in the UAE and then request a refund on the VAT incurred on their purchases. To qualify for a refund, tourists must validate their purchases at the point of exit and can claim refunds for export-validated tags within one year from the date of validation. Planet, the exclusive operator of the tax refund system, ensures a smooth process for tourists, as most popular stores in the UAE are registered with the scheme, and refunds can be secured upon departure by land, sea, or air.

To enjoy tax-free shopping, tourists need to follow a simple procedure. At the store, they can request a tax-free purchase, which requires a minimum expenditure of AED 250. The tourist must present a valid travel document, which will be scanned for use in the payment system. The shop assistant captures the tourist's information using the Planet system and places a 'tax-free' tag on the back of the sales receipt. A digital tax-free form is created, and the tourist must validate the transaction at the airport within 90 days of the purchase date. By adhering to these steps, tourists can take advantage of the tax-free shopping system and receive a refund on the VAT paid.

To claim their VAT refunds, tourists must meet certain conditions. Refunds are not applicable to goods that have been consumed, either partially or fully, in the UAE, and the goods must be in the possession of the tourist when leaving the country. Additionally, the tourist must be at least 18 years old, purchase goods from participating retailers in the 'Tax Refund for Tourists' scheme, and ensure that the goods are not excluded from the FTA's refund scheme. When collecting the VAT refund, tourists can use a special device located at the departure port, be it an airport, seaport, or border port. They need to submit the tax invoices from registered outlets, along with copies of their passport and credit card. The VAT can be refunded in cash in UAE dirhams or directly to their credit card. It's important to note that tourists will receive 85% of the total VAT amount paid, with a deduction of AED 4.80 per tax-free tag as a fee. By following these guidelines, tourists can easily collect their VAT refunds and enjoy the benefits of tax-free shopping in the UAE.

Why Should You Consider Capatt Services for Investment in the Hospitality Industry?

Investing in the hospitality sector is extremely lucrative for overseas businesspersons.

Easy Asset Management: At Capatt Services, we have a team of expert business managers that can manage your property from the construction phase to leasing. Our partners can also help you secure the best room rates and highest occupancy.

Strong ROI: Dubai offers a great return on investments in the hospitality industry. At Capatt Services, we only work with the best operating partners to ensure your hospitality investment remains in safe hands.

Freehold Ownership: As a foreign businessman, you will get complete freehold ownership of your property. You can choose to sell your property at any time you need.

Need more information on why and how to invest in the hospitality sector in Dubai? We can help you with company formation in Dubai. Reach out to us today at

Related Blogs

United Arab Emirates and Germany two flags together realations

Expanding German Businesses in the UAE: A Step-by-Step Guide to Capturing Market Opportunities

Discover essential strategies for German entrepreneurs aiming to expand in the UAE. From aligning with Dubai’s vision to embracing digital technologies, find out how to capture market opportunities…
May 11, 2023
5 min read
United Arab Emirates and Germany two flags together realations textile cloth fabric texture

Germany's Economic Prospects in the United Arab Emirates: A Strategic Exploration

Explore the thriving business opportunities for German companies in the United Arab Emirates (UAE). Discover the UAE's dynamic economy, investor-friendly policies, and key sectors for expansion.
May 11, 2023
5 min read
Corporate Tax UAE 2024

Corporate Tax UAE 2024: Essential Guide for Businesses

Discover everything you need to know about the UAE's Corporate Tax in 2024. From rates to compliance, our guide covers key insights to prepare your business for the changes..
May 11, 2023
5 min read

Sign up for our newsletter to Stay Informed on All Things Dubai IFZA

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.