By Staff writer
New report also says consumer spending is expected to continue rising in the medium-term
The UAE's retail market is expected to reach AED200 billion ($54.4 billion) by 2017, growing by a 5 percent on average each year, according to an analysis by the Dubai Chamber of Commerce and Industry.
Consumer spending is also expected to continue rising in the medium-term, with growth rates projected to stabilise at about 4 percent on average per year leading to a total spending of more than AED750 billion by 2017, the analysis showed.
The Dubai Chamber analysis claimed that consumer confidence in the UAE has not been negatively impacted by expectations of decelerating economic growth in the region.
Data for retail sales and consumer spending indicates that the retail sector is growing faster than the UAE economy as a whole, it said.
Retail and wholesale trade in the UAE is an important sector, accounting for more than 11 percent of the country’s GDP and close to 30 percent of Dubai’s GDP.
Dubai Chamber said retail space increased by 7 percent during 2014 to reach 1.6 million square metres while there are projects underway to expand existing malls and plans for constructing new ones.
Its report said households in the UAE spent AED673 billion in 2014, with consumption growing by 6.7 percent per year in real terms. Spending per capita increased by 5.7 percent to reach more than AED79,000 in 2014.
The report said consumers in the UAE spend most of their income on housing, followed by food & beverage and transport.
The UAE ranked 7th in the 2015 Global Retail Development index, which ranks the top 30 developing countries for retail investment. The index gives the UAE the second best rating in the Middle East and North Africa (MENA) region, after Qatar, which was ranked 4th.For all the latest retail news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.