The flourishing tourism industry in the GCC region, which boosts footfall in airports and other duty-free zones, is propelling the market growth forecast at a 9.5 per cent compound annual growth rate (CAGR) during 2024 to 2032, a leading market player said.
Dubai’s aviation sector, a key economic pillar, is projected to contribute 2 per cent to the emirate’s GDP by 2030, a significant increase from 27 per cent in 2023, according to Abra, a luxury retail fit-outs in the MENA region.
The construction of the new $35 billion passenger terminal at Al Maktoum International Airport (DWC) is a cornerstone of this growth, forecast to add $3 billion in annual retail sales, it said.
This robust trajectory underscores Dubai’s commitment to enhancing its status as a global aviation hub, backed by significant investments in infrastructure and innovation, it added.
Abra said the GCC’s airport retail sector is experiencing unprecedented expansion, fuelled by increasing passenger traffic, growing tourism, and significant investments in airport infrastructure.
“The UAE and Saudi Arabia are at the forefront of this boom, with retail sales expected to reach $161.40 billion and $139.10 billion, respectively, by 2028,” it said.
Abra said the company is strategically positioning itself to capitalise on these opportunities and transform airport retail into iconic luxury destinations.
It said it has completed over 200 projects over the last 3 years at 21 airport destinations, specialising in fragrance, beauty, confectionery, liquor, and fashion categories.
“As airports transform into vibrant retail destinations, they are becoming global stages for luxury retail. In the GCC, this trend is particularly pronounced, with airports integrating expansive retail spaces that rival traditional shopping malls,” said Anand Kumar, Managing Director of Abra.
He said the Dubai International Airport (DXB) is on track to handle a record 91.8 million passengers in 2024, an 8 per cent increase from the previous year, reflecting the region’s robust aviation growth.
Abra has an extensive portfolio spanning multiple retail categories, including fragrance, beauty, confectionery, and fashion.
The global airport retailing market is expected to reach $90.23 billion by 2033.
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