Retail Industry forecast in Dubai 2019Author businessconsultantsdubai
- Strong international visitor spending.
- Robust demand driven by high frequency of mega sales and shopping festivals
- Growing e-commerce activity
- Increasing popularity of traditional and app based delivery services
- Sector expansion due to Expo 2020
- Rise in number of tourists from China, Russia and other key source markets because of recent decision to ease visa restrictions.
CBRE Retail Report (May 2018)
The latest CBRE report says that the Dubai is the number one market for international retailer presence. More supply is on the way, more malls are going to be built. The key statistic here is that in total one and a half million square meters of extra retail space will be added before 2020 and that is 50% increase on the current total.
Value of retail sales in Dubai is estimated to reach $43.8 billion by 2021.
Retail tourism is a big factor in this. According to Master Card global cities destination index international visitors spend total of 28 billion $ which is 70% greater than London
EuroMonitor International Report
According to data revealed by Euromonitor International Dubai’s retail sector made a projected Dh142 billion in sales during 2018, making a growth rate of 6.8%. Major contributors include,
- Store based retailing – market share 95%.
- E-commerce: 19% year on year growth with Dh5.5. billion sales in 2018.
Hamad Buamim, president and CEO of Dubai Chamber, said that the analysis reflects the strength and flexibility of Dubai’s retailers, as well as the marvelous potential that the retail sector offers local, regional and international industry players. According to him,
“Retail remains one of the key contributors to Dubai’s economy and one of the most attractive sectors for investment in the emirate. The analysis has pointed out several positive trends and factors that are likely to fuel the future growth of the sector, and augment the emirate’s attractiveness as one of the world’s most sough-after shopping destinations.”
Sami Al Qamzi, director general of the Department of Economic Development (DED) has announced that the DED, in collaboration with Dubai Tourism, will continue to build on Dubai’s already popular position as a favorable shopping destination, and provide new SMEs with the opportunity for company setup in Dubai and also to fledgling SMES to grow their business in Dubai.
Major drivers of e-commerce activity in the emirate include strong Dubai government support in line with its pledge to transform Dubai into the world’s smartest city, and a significant mobile penetration rate, along with Dubai’s growing logistics networks. Additionally, in spite of the implementation of value added tax (VAT), many supermarkets have coped to keep their prices competitive which have helped offset such costs. Meanwhile, smaller retailers, such as convenience stores, have sustained attracting consumers by improving their customer service with prolonged opening hours and delivery services.
It looks like retail experiences in Dubai is only going to get bigger but that might lead to certain changes down by the line. We will keep you updated with them in our blog.
If you are interested in starting business in retail sector of Dubai, feel free to contact our experts at Business Consultants Dubai. Visit our website or send your query at firstname.lastname@example.org