24,594 Active Licenses and Rising: Why Abu Dhabi’s F&B Sector Is Entering Its Prime in 2026
If you’ve noticed a surge in new restaurant signage across the capital lately, the data finally explains why.
Abu Dhabi’s food and beverage sector hasn’t just grown; it has fundamentally shifted scale.
As of September 2025, the emirate officially hit 24,594 active F&B licenses—a number that marks the end of incremental progress and the start of a massive structural era.
The recent acceleration has been nothing short of aggressive. During the first six months of 2025, business registrations in the sector jumped by 42.2% year-on-year. This comes as a bit of a shock to those who thought 2024’s 40% expansion was the ceiling.
But looking at this as a “sudden” spike misses the bigger story.
This momentum didn’t appear out of thin air; it’s the result of five years of steady compounding. Between 2019 and 2024, F&B activity grew at an average annual rate of 23.8%. That period of quiet preparation is exactly what allowed the current acceleration to take hold so firmly.
The figures, released by the Abu Dhabi Chamber as part of its new 2025–2028 strategy, suggest the industry has moved past the “trial and error” phase.
What we’re seeing now is a market that has reached full visibility, backed by years of behind-the-scenes momentum that is finally boiling over into the mainstream.
Macroeconomic Catalyst: The Non-Oil Momentum
This F&B explosion isn’t happening in a vacuum; it is being propelled by the sheer weight of the UAE’s broader economic shift.
The “Falcon Economy” is currently seeing its diversification efforts pay off in real-time. In the second quarter of 2025, Abu Dhabi’s non-oil GDP grew by a robust 6.6%, a figure that underscores just how much distance the emirate is putting between its future and its crude-oil past.
With the national economy on track to expand by 5% in 2026, the food sector has emerged as a primary engine for both local consumption and job creation. It is no longer a peripheral industry; it’s a pillar.
The demand side of the equation is also evolving.
The influx of high-net-worth individuals and “digital nomads” drawn in by the expanded Golden Visa and new specialist permits launched in 2025 has fundamentally changed the customer profile.
We aren’t just seeing more people; we’re seeing a shift toward a more permanent, affluent resident base that prioritizes premium, experience-driven dining. For operators, this means the market isn’t just getting bigger, it’s getting more sophisticated.
Strategic Drivers: "Make it in the Emirates" and the Agri-Tech Leap
The rapid expansion of Abu Dhabi’s F&B sector is increasingly anchored by a shift toward self-sufficiency.
Under the broader “Make it in the Emirates” initiative, the emirate is no longer just a consumer of global food products but a burgeoning producer.
In fact, national food production is now projected to climb by 30–40% over the next decade, a massive undertaking that is fundamentally reshaping local supply chains.
The real “force multiplier” in this shift is Agri-Tech. In a region where traditional farming is hampered by the climate, Abu Dhabi has leaned into high-tech alternatives.
Current investments in climate-controlled environments and hydroponics are yielding results once considered impossible, with productivity now up to 30 times that of conventional soil-based methods.
This isn’t just about efficiency; it’s about creating a year-round, resilient food source that is decoupled from weather volatility.
This technological surge is feeding directly into a robust industrial expansion. The food processing and manufacturing segment, the “midstream” of the value chain, is now forecast to grow at an annual clip of 7% through 2029.
By moving from simple importation to sophisticated local processing, Abu Dhabi is ensuring that more of the economic value stays within the emirate. For the 24,000+ license holders in the market, this translates to fresher local sourcing and a much more reliable, tech-backed foundation for growth.
A Global Culinary Destination: The "Michelin Effect"
Abu Dhabi’s transformation into a world-class food capital is now officially etched in the stars. The 2026 Michelin Guide Abu Dhabi, unveiled just months ago, has expanded to include 56 restaurants.
This fourth edition wasn’t just a repeat of the usual suspects; it welcomed 11 new additions, signaling a market that is diversifying much faster than most regional analysts expected.
While established icons like Erth, Hakkasan, and Talea managed the high-pressure task of retaining their Michelin Stars, the real energy is coming from the “new blood” making its debut. We’re seeing a fascinating spread of styles, from the high-drama, open-fire cooking at Strawfire by Ross Shonhan to the authentic, soulful Khaleeji traditions served up at Villa Mamas. This variety proves that Abu Dhabi isn’t just importing global franchises anymore; it’s cultivating a unique, multi-layered identity.
This gastronomic boom isn’t a happy accident; it’s a central pillar of the Tourism Strategy 2030. With the emirate aiming for a massive 39.3 million annual visitors by the end of the decade, the government is betting that “foodie tourism” will be the primary hook.
By concentrating world-class dining into specific hubs, think the high-culture streets of Saadiyat or the waterfront energy of Yas Bay, Abu Dhabi is making refined dining a reason to travel in its own right, rather than just an afterthought.
The logic is simple: the path to hitting that 40-million-visitor mark runs straight through the city’s kitchens.
For the 24,000+ business owners already on the ground, this influx of international travelers creates a captive, high-spending audience that will only grow as the 2030 deadline looms closer.
Regulatory & Business Setup Roadmap: Insights for ADEPTS
For those navigating the administrative side of Abu Dhabi’s F&B boom, the landscape has become significantly more transparent, albeit more sophisticated.
The emirate’s push for digitalization has largely succeeded through the TAMM portal, which now acts as a centralized “single window” for everything from initial trade name reservations to health and safety permits.
This shift hasn’t just sped up the process; it has made license acquisitions for mobile food units and traditional restaurants far more predictable for investors.
The Financial Blueprint: Setup Costs
When advising on entry costs, it is vital to distinguish between fixed licensing fees and the total operational “burn” required to open doors.
- Mobile Units (Food Trucks): While often seen as a “low-cost” entry, the regulatory bar is high. Licensing and location permits generally range from AED 120,000 to AED 250,000. However, when you factor in the vehicle, custom fit-outs to meet health codes, and initial equipment, total startup capital typically ranges from AED 400,000 to AED 800,000.
- Standard Trade Licenses: For more traditional brick-and-mortar setups, the core trade license remains relatively competitive, usually costing between AED 15,000 and AED 20,000 annually.
Compliance as a Competitive Edge
Beyond the initial setup, the 2025–2026 regulatory environment is defined by a “flight to quality.” New, rigorous frameworks for Halal standards and the mandatory Nutri-Mark labeling system (fully enforced as of June 2025) have raised the barrier to entry.
While these requirements add a layer of complexity for compliance officers, they are effectively reinforcing international investor trust.
By aligning local standards with global best practices, Abu Dhabi is ensuring that its F&B assets are not just locally compliant but ready for international scale and eventual export.
Sustainability: The "Sustainable Satiety" Trend
In 2026, Abu Dhabi’s F&B industry has reached a point where “being green” is no longer about brand image: it’s about the bottom line.
This shift, often termed “Sustainable Satiety,” marks a move toward operational discipline. With food waste reduction and precision purchasing now powered by AI-driven inventory tools, restaurants are finding that sustainability is the most direct path to protecting their margins in a high-cost environment.
The circular economy is also moving from theory to the kitchen floor. A landmark collaboration between the UAE Restaurant Group (UAERG) and the Ministry of Economy is currently piloting programs that turn liabilities into assets.
Most notable is the national push to collect used cooking oil from commercial kitchens and convert it into lower-carbon biofuels. By treating waste as a resource rather than a disposal headache, the sector is aligning itself with the UAE’s broader Net Zero 2050 goals while simultaneously lowering the environmental “tax” on urban infrastructure.
As the ne’ma (National Food Loss and Waste Initiative) continues to roll out its 2026 baseline studies, the expectation for operators is clear: transparency in the supply chain is no longer optional.
From “zero-waste” garnishes to smarter portioning, the most successful brands in the capital have realized that efficiency and ecology are now one and the same.
Conclusion
The data is clear: Abu Dhabi’s food and beverage sector has evolved past being a simple real estate “tenant category.” It is now a primary driver of destination value and a central pillar of the UAE’s broader economic diversification.
This isn’t just about more places to eat; it’s about a multi-billion-dirham ecosystem that connects high-tech local production to global tourism and massive domestic consumption.
For the international investment community, the era of “wait and see” curiosity has effectively closed. In its place is a mature, competitive market that is increasingly selective, favoring operators who can demonstrate rigorous operational discipline, tech-integration, and the ability to deliver reliability at scale.
Navigating the 2026 Regulatory Landscape: As Abu Dhabi solidifies its status as a global food hub, the complexity of tax and regulatory compliance has grown alongside the opportunities. From Corporate Tax implications to the latest municipal health frameworks, staying ahead of the curve is no longer optional for a successful launch.
Expert Guidance for Your F&B Venture: Navigating the shifting tax and regulatory landscape is critical to protecting your investment.
FAQs:
As of the landmark report released by the Abu Dhabi Chamber on February 4, 2026, there are 24,594 active F&B licenses in the emirate. This follows a significant 42.2% surge in new registrations during the first half of 2025.
Restaurants and cafes remain the dominant category, making up roughly 41% of all F&B activity. However, 2025–2026 has seen a massive rise in food manufacturing and specialized retail, as investors pivot toward the “midstream” of the supply chain.
Total startup costs typically range from AED 400,000 to AED 800,000. While the core trade license is relatively affordable (approx. AED 15,000–20,000), the bulk of the expense goes toward the specialized vehicle, custom fit-outs to meet ADAFSA health codes, and site permits (AED 120,000–250,000).
Yes. F&B entrepreneurs are eligible if they own a project valued at a minimum of AED 500,000 (certified by an accredited UAE auditor) or have an “innovative” project approved by a local incubator. Alternatively, owners of SMEs with annual revenues of AED 1 million or more can qualify for the 10-year residency.
While Dubai remains a larger market by volume, Abu Dhabi’s non-oil GDP is currently outperforming Dubai’s growth rate (6.6% in Q2 2025). Abu Dhabi’s growth is increasingly driven by industrial production and Agri-Tech, whereas Dubai’s growth is more heavily weighted toward tourism and high-volume retail.
Under the Small Business Relief program, UAE resident businesses with gross revenue of AED 3 million or less can elect to be treated as having no taxable income for Corporate Tax purposes. This relief is currently available for tax periods ending on or before December 31, 2026.
Agri-tech has shifted the cost structure from “variable” (importing fresh goods) to “fixed” (high-tech infrastructure). Climate-controlled farms and hydroponics are now delivering 30 times the productivity of traditional farming, significantly lowering the long-term unit cost of produce by reducing waste and logistics expenses.
The 2026 Michelin Guide Abu Dhabi features 56 restaurants in total.
- 1 Michelin Star: Erth, Hakkasan, and Talea.
- Bib Gourmand: 10 restaurants (including 3 new: 3Fils, Bua Thai Cafe, and Goldfish Sushi & Yakitori).
- Selected: 43 restaurants.
- Al Ain: Known as the emirate’s “Agricultural Heartland,” it remains the primary hub for traditional and modern farming.
- Al Dhafra: Increasingly a focus for large-scale aquaculture and desert-resilient Agri-tech projects.
The AgriFood Growth and Water Abundance (AGWA) cluster is a specialized economic zone launched to drive innovation in food and water security. It focuses on alternative proteins (like algae and cultivated meats) and advanced desalination technologies.
The process is centralized through the TAMM portal.
- Trade Name: Reserve your business name.
- Initial Approval: Submit your business plan.
- Approvals: Get a “No Objection” from ADAFSA (Food Safety) and Civil Defense.
- License Issuance: Pay the fees and receive your commercial license digitally.
This is a 2026 consumer trend where “green” eating meets personal wellness. It focuses on nutrient-dense, high-satiety foods that reduce both personal overconsumption and industrial food waste. Restaurants are responding by utilizing “zero-waste” cooking techniques and smaller, high-quality portioning.
Yes. Recent amendments to the UAE Companies Law allow 100% foreign ownership for most F&B activities on the mainland, removing the previous requirement for a local majority partner (Emirati sponsor).
The food processing and manufacturing segment is forecast to grow by 7% annually through 2029. The total UAE F&B market is expected to reach nearly $44 billion by that same year.
All new restaurants must comply with ADAFSA (Abu Dhabi Agriculture and Food Safety Authority) regulations. The most critical requirement is the Essential Food Safety Training (EFST), which is mandatory for all food handlers, and the implementation of a HACCP-based food safety management system.
References
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https://u.ae/en/about-the-uae/strategies-initiatives-and-awards/strategies-plans-and-visions/environment-and-energy/the-uae-net-zero-2050-strategy#:~:text=This%20strategy%20is%20designed%20to,cent%20to%20the%20national%20GDP. - ‘UAE Economic Expansion Set to Scale New Highs in 2026’. Khaleej Times,
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