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Gulf Press > Business > Why UAE businesses will spend more on travel in 2026
Business

Why UAE businesses will spend more on travel in 2026

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Last updated: 2026/01/04 at 1:40 AM
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Corporate business travel is experiencing a significant resurgence in the UAE, Saudi Arabia, and Qatar, driven by a shift towards more purposeful and strategic trips. Musafir.com reported a 35% year-over-year increase in corporate bookings, reflecting a growing demand for in-person interactions focused on project management, partnership development, and strategic alignment across Gulf markets. This trend signals a recalibration of travel priorities, moving away from routine movement towards impactful engagements.

Contents
Why the UAE is a Hub for Corporate TravelThe Role of Technology in Future TravelRethinking Travel Spending and Expense Management

The increase in travel is particularly noticeable between key cities like Dubai, Abu Dhabi, Riyadh, and Doha, as companies navigate expanding regional projects and collaborations. This growth is fueled by a rise in MICE (Meetings, Incentives, Conferences, and Exhibitions) activity, providing platforms for crucial decision-making and relationship building. According to Sachin Gadoya, CEO and Co-Founder of musafir.com, companies are now prioritizing “purposeful moments that drive alignment, trust and outcomes.”

The Resurgence of Business Travel in the UAE

Globally, business travel spending reached $1.47 trillion in 2024, but companies are becoming more discerning about when and why they send employees on the road. Instead of numerous short trips, organizations are opting for fewer, more substantial journeys – such as leadership summits, strategy sessions, and innovation workshops – where face-to-face interaction is deemed essential for fostering agreement and trust. Executives consistently report that in-person engagement offers benefits that virtual meetings cannot fully replicate, particularly when negotiating complex deals or resolving challenging issues.

Why the UAE is a Hub for Corporate Travel

The UAE and Saudi Arabia are actively expanding their events calendars, attracting international exhibitions and forums from Asia, Europe, and North America. Dubai’s well-established infrastructure and connectivity, coupled with the growing prominence of Abu Dhabi and Riyadh as business meeting destinations, make the region an attractive choice for corporate gatherings. Hotel bookings linked to sectors like construction, technology, energy, and real estate demonstrate that activity extends beyond conferences and encompasses broader business operations.

Gadoya emphasizes that a focused two-day in-person strategy session can often achieve more than weeks of virtual meetings, especially for businesses managing regional growth and complex stakeholder relationships. This highlights the value placed on direct interaction for accelerating decision-making and strengthening partnerships.

The Role of Technology in Future Travel

Looking ahead to 2026, technology is expected to play an increasingly significant role in planning and managing business travel. Artificial intelligence (AI) is being integrated into booking systems to personalize trips and automate routine processes. Jen Moyse, Vice President of Product and Head of UX at SAP Concur, notes that companies will leverage AI to enhance traveler safety through predictive risk assessment and personalized safety alerts.

However, the adoption of AI must be carefully balanced with maintaining transparency and trust. Charlie Sultan, President of Concur Travel at SAP Concur, stresses the importance of addressing concerns about talent and staffing in response to AI implementation. Establishing trust and ensuring transparency will be critical as companies navigate this technological shift.

Rethinking Travel Spending and Expense Management

Automation is also poised to transform how companies track expenses and reimburse employees. Christopher Juneau, SVP and Head of Product Marketing at SAP Concur, suggests that the traditional “expense report” may become obsolete, replaced by AI-driven auditing, reconciliation, and automatic reimbursement. Businesses are increasingly linking internal systems – including invoices, receipts, and payroll – to AI tools to improve spending visibility and control.

Companies are also exploring ways to control costs without hindering travel that supports growth. Kacey Flygare, General Manager and Global Business Head, SMB, at SAP Concur, believes that automation will facilitate responsible spending through tools like virtual cards and dynamic card controls. These technologies aim to lower risk and reduce the burden of cash outlay for business trips.

Many finance leaders anticipate 2026 will be a year of experimentation, balancing innovation with risk management. Sonja Simon, Chief Financial Officer, SAP Americas, argues that embracing failure as a learning opportunity is crucial for unlocking the full potential of AI in reimagining decision-making and value creation. The overall outlook for corporate travel remains positive, with demand expected to continue as Gulf economies expand and cross-border collaboration deepens.

While demand may not fully return to pre-2020 levels, the focus is shifting towards more strategic, selective, and outcome-oriented travel. For UAE-based professionals, this signifies a return to business travel not as a routine obligation, but as a valuable tool for progress, built on trust, collaboration, and tangible results. The next year will likely see increased investment in AI-powered travel solutions and a continued emphasis on maximizing the return on investment for every business travel dollar spent. Monitoring the adoption rates of these technologies and the evolving travel policies of major corporations will be key indicators of future trends.

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News Room January 4, 2026
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