Homegrown coffee brands in the United Arab Emirates are expanding rapidly even as shipping disruptions linked to regional tensions drive logistics costs to nearly six times previous levels, according to recent analyses from trade and business outlets in Dubai.
AGBI reported on 3 June 2026 that Euromonitor International values the UAE’s branded coffee and tea shop sector at AED 2.25 billion (about US$613 million) in annual sales, growing at 15 percent per year since 2022, while research published by Authority.Coffee on 2 April 2026 estimates the wider UAE coffee market at roughly US$3.4–3.5 billion in 2026, up from US$3.2 billion in 2025, an 8–9 percent annual growth rate.
The boom is transforming the structure of the country’s specialty scene. AGBI noted in coverage on 26 January 2025, and again in its June 2026 analysis, that the number of UAE coffee roasters has risen from about 75 before the Covid-19 pandemic to more than 400 today. In the same June article, Euromonitor research analyst Manoj Nair said, “The growth is not coming from share being taken away from international brands. The overall market is expanding, but local operators are capturing a larger share of premium and experience-led spending.”
That expansion is occurring against a backdrop of severe logistics pressures. On 29 May 2026, The National reported that instability around Iran and the Strait of Hormuz has led to longer transit times and higher charges for roasters importing green coffee. In the same report, Cypher Urban Roastery co-founder Mohamad Merhi said, “A shipment that may previously have cost approximately Dh12,000 to Dh15,000 for a container has, in recent cases, risen to approximately Dh70,000 once [conflict]-related charges are factored in.”
Supply-chain strain is echoed by roasters serving the specialty segment. In AGBI’s 3 June 2026 coverage, RAW Coffee Company chief executive Matt Toogood stated, “The current logistics environment remains extremely challenging, with freight costs reaching nearly six times pre-conflict levels.” AGBI added in the same piece that RAW Coffee Company expects its previously strong sales growth to level off in 2026 amid these pressures.
Despite the cost shocks, several operators say they are choosing not to compromise quality or pass the full burden to customers. The National reported that Roasters Specialty Coffee House has, in some cases, turned to more expensive air freight to keep flavour profiles consistent, with owner Kroshnyi saying, “For us, flavour consistency is a matter of reputation … We chose to absorb the complexity around the supply chain rather than let that complexity reach the customer.” In the same article, former World Barista Champion Sasa Sestic said some coffees are being frozen “at the right point of ageing” to preserve flavour, even though this “does increase costs.”
Growth is also visible among larger UAE-based roasters with strong business-to-business footprints. In an interview published on 20 April 2026 by mid-east.info and cited again by AGBI on 3 June 2026, Coffee Planet founder Allan Jones said the company recorded 19 percent revenue growth in 2025 and has maintained a compound annual growth rate of 10.7 percent over the past decade. Mid-east.info reported that Coffee Planet delivers more than 21 million cups of coffee each month across Gulf Cooperation Council countries and operates a 26,000-square-foot roasting facility in Dubai’s Jebel Ali district with an annual capacity of 5,000 tonnes.
Jones also linked this performance to a wider regional pivot toward domestic players. In AGBI’s June 2026 article, he said, “As the region continues to evolve, we are seeing a clear shift towards locally driven operations.” In The National’s May 2026 coverage, he added that the UAE’s role as a trade and logistics hub, including its infrastructure and connectivity, has “played a huge role in keeping supply chains moving efficiently” despite current disruptions.
The combination of strong demand and rising costs is drawing fresh capital into the sector. Authority.Coffee’s April 2026 market study noted that family office acquisitions of GCC coffee brands typically value profitable businesses at four to seven times earnings before interest, taxes, depreciation and amortisation, and that master franchise rights for Gulf markets have exceeded US$5 million in some recent deals.
Even with that investor interest, some industry voices warn that today’s operating environment is testing newer entrants. In a January 2025 interview with AGBI, The Daily Coffee Pro Podcast founder Lee Safar said, “What’s happening is you’ve got people that are opening businesses that don’t understand the supply chain at a time when the supply chain is in utter chaos.”
Looking across the region, earlier AGBI coverage on 26 January 2025, citing World Coffee Portal’s Project Café Middle East, reported that the branded coffee shop market in the Middle East and North Africa grew by 11 percent in 2024 and that the number of branded outlets is forecast to reach 16,460 by November 2029, underlining the broader scale of the momentum that UAE operators are currently navigating.
