New analysis says emirate's retail market to see average growth of 5.6% over 2018-2021
The value of retail sales in Dubai is expected to reach $43.8 billion by 2021, according to new analysis by the Dubai Chamber of Commerce and Industry.
The analysis, based on recent data from Euromonitor International, Core Savills Research, Mastercard and New World Wealth, showed that the emirate’s retail market is projected to record average growth of 5.6 percent over the 2018-2021 period.
It said the interplay between the emirate’s retail, real estate, travel and tourism markets continues to strengthen Dubai’s value proposition for consumers and investors, state news agency WAM reported on Thursday.
Key factors expected to fuel retail sector growth include the rising number of tourists and high occupancy levels at major retail centres and shopping malls, in addition to high per capital income, strong international brand presence and a consumer base that likes to spend on retail, food and beverage and leisure activities, WAM added.
With more than 60 shopping centres and major international brands, Dubai has the second-highest density of shopping malls in the world ranking only behind New York.
Mall density in Dubai is nearly 380 percent higher than that of London and 240 percent of Paris, the report said, adding that this can be attributed to the fact that European markets have a stronger high street market, in addition to a much higher population base.
In 2017, total international visitor spend in Dubai amounted to $28 billion, a figure which is 77 percent higher than London.
The analysis revealed that Dubai retail market size grew to $35 billion in 2017, accounting for around 67 percent share of the UAE’s total retail market size. Major retail centres and shopping malls were close to full occupancy over the 2016-2017 period.