With Covid-19 restrictions leading to the closure of Dubai’s shopping malls, some major players in the emirate are turning towards online platforms to stimulate retail activity. In mid-April The Dubai Mall, the largest retail space in the UAE, announced the launch of its own virtual store on the Gulf e-commerce platform, noon.com. A partnership between the Public Investment Fund of Saudi Arabia…
Due in part to local demographic changes and broader economic factors, retailers in Dubai have noticed an evolution in the profile of the typical consumer. As such, the success of retail offerings in the coming years will depend on stakeholders’ ability to predict new trends in the emirate’s shifting consumer spending patterns. As for the purchasing power of visitors from the region and…
Interview:Colm McLoughlin How are market expectations for the final run-up to Expo 2020 affected by rising visitor numbers? COLM MCLOUGHLIN: The total number of tourists to Dubai grew by 0.8% to reach a record-high of 15.9m in 2018, bringing the emirate closer to achieving its target of welcoming 20m travellers per year by 2020, when it will host Expo 2020. Furthermore, in 2018 Dubai International…
While e-commerce has become well established in more developed markets, the segment has been slower to take off in emerging economies. Online purchasing has been held down in these markets by financing, purchasing and logistics challenges. Nevertheless, online sales are growing rapidly in many developing countries in spite of these obstacles. Some governments are changing frameworks to boost…
For many residents, tourists and developers, retail remains a core part of Dubai’s identity. The sector contributes just over one-quarter of the emirate’s GDP and, thanks to a number of mixed-use retail projects in the pipeline, is set to continue expanding. Local iconic malls are constantly reinventing themselves, searching for new brands and experiences to attract global consumers to…
With new communities to serve, as well as developments that aim to reinvigorate existing districts, some of Dubai’s most prominent real estate developers are increasing the number of retail options available to residents of and visitors to the emirate. In talks with real estate consultancy Knight Frank UAE, OBG learned that total gross leasable area (GLA) of retail supply is expected to increase…
Interview:Patrick Chalhoub What risks are there of over-saturation in the sector given the increase in gross leasable area (GLA)? PATRICK CHALHOUB: The peak at which demand outpaced supply occurred in 2015, since then supply has gradually superseded demand. The reason for this is that demand has remained stable since 2015, while supply has continued to rise. As a result, we have seen an even…
For many residents, tourists and developers, retail remains a core part of Dubai’s identity. The sector contributes just over one-quarter of the emirate’s GDP, and is set to continue expanding. However, optimism surrounding the influx of new supply is tempered by slower economic growth brought on by lower oil prices. In this context, sector stakeholders are looking to Dubai Expo 2020 to provide…
Dubai's well diversified economic base has continued to underpin growth in the emirate. Despite slowing global growth and rising tensions placing pressure on international shipping, Dubai’s maritime sector has continued to strengthen, and in 2019 the emirate moved up in the ranking of the world’s top-10 maritime capitals, securing the ninth spot. The emirate is also rapidly emerging as a leade
On how Dubai’s retailers are adapting to the shifting market trends During the first year of its implementation, what overall impact did value-added tax (VAT) have on consumer demand and operating costs in the retail sector? PATRICK CHALHOUB: On consumer demand, we saw a decline in the luxury items segment in 2018. However, it is arguable how much of this decline can be attributed to the…