Report shows Dubai as leading retail hub

Dubai’s retail sector has been growing for the last few years, as part of the specific economic diversification strategy for the region.

The Dubai Chamber of Commerce has been vocal about its support of the business community as retail and tourism is key to sustained economic growth. And a report by retail giant Emaar Malls shows that the sector is growing.

Report shows healthy retail sector

Emaar Malls owns The Dubai Mall, Souk Al Bahar, Gold & Diamond Park, various community shopping centres and Dubai Marina Mall. The recent report shows a profit of Dh539million (just over £133m) in the first three months of 2017.

This is a jump from Dh452million net profit posted for Q4 2016, which reflects an increase of 19 per cent, a strong indication of a healthy and booming retail sector. The report also showed that 34 million visitors were welcomed into the retail centres owned by Emaar Malls, over the Q1 period of 2017. This is up 10 per cent on the same period for last year.

Long term economic strategy

It could certainly be said that this growth clearly reflects the importance of Dubai as a leading tourism and retail hub and signifies economic growth. The long term economic strategy for Dubai is a vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, and is aimed at boosting the value of the area as a place people want to invest in.

As the retail sector is a vital part of Dubai’s economy, it shows that committing to the development of malls and working on giving customers what they want is the future for Dubai’s retail sector. In 2017, Emaar Malls has a GLA (gross leasable area) of around six million square feet in Dubai, and has committed to another one million square feet. This will be part of The Dubai Mall’s Fashion Avenue, which aims to attract luxury brands to the mall.

Lots of retail development underway

The Dubai Chamber of Commerce and Industry predicts the retail market in the UAE will reach Dh200billion by the end of 2017. This reflects a 5 per cent growth year on year for the last three years. The Dubai Chamber also predicts that consumer spending is likely to keep rising in the short to medium term.

The Chamber has analysed data from consumer spending and retail sales shows that the retail sector is growing faster than the economy itself. It doesn’t appear to be impacted in a negative way by uncertainty around the general deceleration in economic growth in the UAE, indicating it remains a backbone for the economy.

There are lots of development projects still underway for expansion of malls and building of new entertainment and retail offerings. This will continue to attract investment in property, retail and business to the area.

Samir Salya

Samir Salya is the Chairman of Reign Holdings and is involved in real estate and construction within the UAE and UK. Samir holds over 20 years of experience in executive management, business expansion, performance improvement, sales and marketing.