The UAE’s retail sector in Q2 2021 is ‘cautiously optimistic’, and confidence is on the rise with steady economic recovery, according to a newly released report by Majid Al Futtaim.
Data from the ‘State of the UAE Retail Economy’ report, which tracks the progress of the retail economy, reinstated that the UAE retail market’s recovery is ongoing.
“Looking back over the past six months, we continue to see positive trends across the UAE retail economy, and in some sectors significant progress in returning to pre-pandemic levels,” said Alain Bejjani, CEO at Majid Al Futtaim – Holding.
The residential property sector is a prime example of this recovery, with a 215 percent increase in the number of residential property transactions in Dubai between May 2020 and May 2021, and a growth in transaction value of 357 percent.
The report also indicated that UAE shoppers were demonstrating increased comfort levels in public spaces, with 64 percent of shoppers admitting to feeling comfortable visiting a shopping mall.
Total footfall increased by 11 percent in Q2 2021, compared to Q1 2021, across Majid Al Futtaim’s own network of malls.
Food and beverage sales rose by 41 percent and home furnishings by 28 percent.
“Speaking to our collective efforts to rebuild post Covid-19 and the impressive resilience of the UAE market, this quarter’s data analysis confirms green shoots of sustainable growth. Majid Al Futtaim remains confident that the UAE retail economy is on track to make a full recovery,” stated Bejjani.
Alain Bejjani, CEO at Majid Al Futtaim – Holding.
While the UAE’s retail economy continues to regain some of the momentum lost to the pandemic, consumer spending in the overall sector (including hyper/supermarkets, fashion, leisure and entertainment, and general retail) recorded a 3 percent decline in H1 2021 compared to the same period in pre-pandemic 2019.
E-commerce sales continue to boom in H1 2021, increasing by 17 percent compared to H1 2020, despite shopping restrictions having been reduced.
“Looking ahead, we continue to see an acceleration in consumer expectations towards omni-channel experiences, as digital and technology solutions become further integrated into everyday life,” he added.
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