Over 34,000 New Jobs Expected in UAE Expanding Hospitality Industry

The United Arab Emirates (UAE) is preparing for a major expansion in its hotel industry, with more than 23,000 new hotel rooms expected to open by 2030, according to new data released by Knight Frank. The report highlights that Dubai will play the biggest role in this growth, contributing over half of the total new rooms.

At present, the UAE has 213,928 operational hotel rooms (keys), but this number is projected to rise to 235,674 by the end of the decade. Dubai will lead this increase by adding 12,861 new rooms, pushing its total from 152,478 to 165,339 rooms by 2030.

Focus on luxury and upscale hotels

The UAE continues to strengthen its position as a world-class tourism hub, and most of the upcoming developments are focused on luxury and upscale hotels. Currently, 26% of the country’s hotel rooms are classified as upscale, 22% as luxury, and 21% as upper-upscale. By the end of 2025, the UAE’s hotel supply is expected to reach 217,853 rooms, reflecting an annual growth rate of about 3%. By 2030, the total number of hotels across the nation is forecast to reach 1,184.

Hotel growth beyond Dubai

While Dubai remains the center of hotel expansion, other emirates are also seeing progress. Abu Dhabi currently has 37,016 rooms, Sharjah has 14,478, and Ras Al Khaimah counts 11,902. As of August 2025, around 55.9% of the country’s upcoming hotel projects are concentrated in Dubai, showing its strong leadership in the hospitality market.

Boost for job creation

This large-scale hotel development is expected to create a significant number of new jobs across the UAE. Based on current industry estimates — 1.5 jobs per luxury room, 1 job per midscale room, and 0.5 job per budget room — analysts predict that between 11,500 and 34,500 new jobs will be generated in the hospitality sector over the coming years.

According to Faisal Durrani, Partner and Head of Research for MENA at Knight Frank, “The hospitality sector in the UAE continues to grow strongly, with record tourist arrivals in cities like Dubai showing its incredible global rise. The government expects 22 million tourists to visit Dubai by the end of 2025.”

Development pace slows, but acquisitions grow

Market experts have noticed a shift in investor strategy. Instead of focusing mainly on new hotel constructions, many investors are now turning their attention toward hotel acquisitions, refurbishments, and repositioning. This marks a new and more mature stage in the UAE’s hospitality market.

“Hotel transactions are entering a new phase of maturity, especially in Dubai,” Durrani explained. “Investors are now targeting strategic acquisitions, showing how the market has evolved into a more sophisticated and stable investment environment after years of fast-paced development.”

Secondary markets gaining attention

According to Oussama El Kadiri, Head of Hospitality, Tourism, and Leisure Advisory for MENA at Knight Frank, other emirates are also emerging as attractive destinations for investors.

“Abu Dhabi and Ras Al Khaimah are becoming strong investment hubs, offering more leisure-focused opportunities and diverse asset classes,” El Kadiri said. “As the UAE moves toward a more balanced and investment-led phase, deal activity is expected to stay strong and consistent.”

He further explained that the maturing market is now appealing to a wider range of investors, including regional family offices, international investment funds, and institutional buyers. These investors are increasingly focused on long-term value creation through strategies like brand partnerships, operational upgrades, and mixed-use developments that combine hotels with retail, residential, and entertainment spaces.

In summary, the UAE’s hotel sector is entering a new era — one defined by sustainable growth, diversified investments, and global appeal. With Dubai leading the charge and other emirates following closely behind, the country’s hospitality industry is set to remain a cornerstone of its economy for years to come.

READ MORE: Turkey Hiring Pakistani Labor: 100 Jobs with Free Accommodation & Meals