Gulf Coffee Market Tops $10 Billion as Saudi Arabia Leads Growth
- The combined Gulf coffee market exceeded $10 billion in 2026.
- Saudi Arabia’s market is valued at $4.5-5 billion with 10-12% annual growth.
- Branded coffee shops in the Kingdom exceed 5,100 outlets.
- Residents and citizens in Saudi Arabia consume more than 36 million cups daily.
- Saudi domestic coffee production reached 7,400 tons in 2026, up 106%.
- The UAE coffee market is estimated at $3.2-3.4 billion.
- Out-of-home spending in the UAE accounts for 93% of total coffee spending.
- People under 35 make up over 60% of the region’s population and drive the specialty shift.
The Middle East coffee market has undergone a clear transformation over the past two years, making it one of the world’s most dynamic markets. It is no longer just a daily habit or a traditional beverage. It has become a fast-growing economic sector that influences lifestyles, trade, and investment.
In the Gulf specifically, the combined coffee market exceeded $10 billion in 2026. Saudi Arabia clearly leads this growth.
Saudi Arabia: The Largest Market and Regional Growth Engine
Saudi Arabia’s coffee market is currently valued between $4.5 billion and $5 billion. It is growing at an annual rate of 10-12%. Branded coffee shops in the Kingdom now exceed 5,100 outlets. That represents nearly half of all such outlets across the region. Total registered cafes, including traditional ones and majlis-style venues, have surpassed 61,000. Residents and citizens consume more than 36 million cups daily.
| Indicator | Value |
|---|---|
| Market size | $4.5 – 5 billion |
| Annual growth rate | 10 – 12% |
| Branded coffee shops | Over 5,100 outlets |
| Total registered cafes | Over 61,000 |
| Daily consumption | Over 36 million cups |
| 2025 imports | 2.4 million bags valued at $910 million |
Vision 2030 Reshapes Coffee Culture
This expansion is directly linked to Vision 2030. The vision opened the door to entertainment, tourism, and social life activities. Coffee shops have become spaces that bring families and young people together. Women’s presence has increased after these venues were previously more restricted to men in some areas.
Major cities such as Riyadh and Jeddah are seeing crowding in new locations. Meanwhile, secondary cities such as Dammam, Khobar, Medina, and Tabuk are beginning to attract new investment in the sector.
Domestic Production: A 106% Increase
Saudi Arabia has made notable progress in domestic production. The Sustainable Agricultural Rural Development Program, known as Reef Saudi, announced that coffee production reached 7,400 tons in 2026. That represents an increase of 106%. The program planted about 4.4 million seedlings during the same year. Once these seedlings reach full production, coffee cherry volumes are expected to rise above 20,000 tons.
Farming is concentrated in the mountainous regions of Jazan, Asir, and Al-Baha. The program aims to support small farmers and gradually raise self-sufficiency. However, imports still make up the largest share of market needs. The Kingdom imported about 2.4 million 60-kilogram bags in 2025. These imports were valued at $910 million. Ethiopia leads the list of suppliers, followed by Brazil and Colombia.
UAE: A Regional Re-Export Hub
The UAE holds a different position in the regional market. Its coffee market exceeds 12 billion dirhams, or about $3.2-3.4 billion. Dubai is distinguished by the density and diversity of its coffee shops. Out-of-home spending in cafes and restaurants accounts for about 93% of total coffee spending. This is among the highest rates globally.
The emirate has also become a regional re-export center. The value of coffee re-exports exceeded 3.5 billion dirhams in 2024. The sector benefits from infrastructure at the Dubai Multi Commodities Centre. The center provides storage, roasting, and connectivity services linking producers in Africa and South America with buyers in the region and Europe.
| Indicator | Saudi Arabia | UAE |
|---|---|---|
| Market size | $4.5 – 5 billion | $3.2 – 3.4 billion |
| Annual consumption | 1.8 million bags | – |
| Focus | Broad domestic market with rapid growth | Re-exports and tourism |
| Out-of-home spending | High | 93% of total spending |
| Imports | 2.4 million bags in 2025 | Transit and distribution hub |
World of Coffee Dubai Sets Records
This momentum has been reflected in major events. The Dubai World Trade Centre hosted the fifth edition of World of Coffee Dubai in January 2026. The exhibition recorded record figures, exceeding 20,000 visits from professionals representing more than 80 countries. More than 2,100 exhibitors and brands from 78 countries participated.
Auctions achieved high prices. These included a Bolivian lot that reached $386 per kilogram. Another natural Gesha lot exceeded $3,000 per kilogram. The Specialty Coffee Association renewed its partnership with the exhibition organizers through 2031. Plans were also announced to expand similar events in other Gulf countries.
North African and Levantine Markets Also Growing
Outside the Gulf, North African and Levantine markets are also showing notable growth. Coffee consumption in Egypt doubled over the past five years. Morocco’s imports rose 23% in 2024. Algeria tops the region’s list by volume. Its consumption reached about 2.3 million bags in 2025. Saudi Arabia follows with about 1.8 million bags, then Egypt.
Consumption in these markets remains more price-sensitive than in Gulf countries. Gulf markets are moving strongly toward premium and specialty products.
The Shift Toward Specialty Coffee and the Third Wave
The sector is witnessing a shift toward specialty coffee and the third wave. Interest in bean origins, roasting methods, and sustainability is growing. Local roasters and independent cafes focused on quality and experience are spreading. Demand is also rising for cold coffee, ready-to-drink beverages, and options with health-oriented additions.
This trend is led by a young generation that makes up more than 60% of the region’s population. This generation sees coffee as part of lifestyle and personal expression.
Challenges Facing the Market
The market faces real challenges despite its growth. Global coffee prices have risen due to climate volatility and tight inventories in some seasons. This is reflected in costs. In the UAE specifically, the market has reached a stage of relative maturity in the mid-tier segment. This makes competition intense and pushes some small cafes to close or sell.
In Saudi Arabia, regulations require specific localization ratios. New investments also need clear local partnerships.
Outlook: From Major Consumer to Value Chain Link
Despite these challenges, expansion continues. Global chains such as Starbucks have announced plans to open hundreds of new branches in the region. Local brands such as Barn’s are seeking to list shares and expand their footprint. New formats are growing, including quick-service outlets, delivery services, and mobile coffee shops.
The region appears set to consolidate its position not only as a major consumer. It is also becoming a link in the global coffee value chain. This extends from import and roasting to consumption and limited local production, which has begun to take clearer shape in recent years.
