Costs and supply from Dubai, affected by the conflict with Iran: the HoReCa sector records a decrease in demand and an increase in prices

Restaurants in Dubai are facing major challenges due to the war with Iran, which has disrupted supply chains and increased the costs of imported ingredients. Chefs are having difficulties sourcing essential products, such as avocados and seafood, being forced to reduce production or opt for local alternatives. Air freight costs have risen by up to 70%, and demand in the HoReCa sector has decreased by 27% compared to last year.

Additionally, the decrease in the number of tourists severely affects restaurants that rely on this segment. Many establishments have started offering fixed-price menus at reduced rates or home cooking kits to attract customers. Despite the economic support measures from the authorities, the restaurant industry, estimated at $9.5 billion, is going through a difficult period. However, there are signs of recovery amid the ceasefire and the resumption of tourist activity, which could bring stability to the sector.