Retail
From The Report: Dubai 2013
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With wholesale and retail trade making up 30.7% of the emirate’s GDP in 2011, Dubai has become the Middle East’s chief retail centre. The emirate is home to one of the largest malls in the world, has a massive domestic consumption of retail goods and boasts a reputation as a prime shopping destination among well-heeled tourists. Despite a hiccup in numbers after the 2008-09 global financial crisis, the sector bounced back quickly, and the emirate continues to work to promote its image as a shopping destination for visitors from both East Asia and the West. With rising incomes among locals and expats alike, record-breaking numbers at the DSF and DSS, and a steadily increasing supply of international brands, local retailers are optimistic about the future. This chapter includes interviews with Iyad Malas, CEO, Majid Al Futtaim Holding; and Colm McLoughlin, Executive Vice-Chairman, Dubai Duty Free.

Articles from this Chapter

Overview

Shopping spree: A major economic contributor continues to benefit from rising local incomes and the growth in tourism
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Over the past decade Dubai has become the Middle East’s chief retail centre. The emirate is home to one of the largest malls in the world, has a massive domestic consumption of retail goods and boasts a reputation as a prime shopping destination among well-heeled tourists. While many other sectors have continued to see declining activity in the wake of the 2008-09 international financial downturn, the retail industry has remained buoyant. In 2010, according to a February 2012 report released…

Analysis

In the lap of luxury: The emirate is the regional centre for high-end goods
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Over the course of the past decade, Dubai has become synonymous with luxury goods. According to the Dubai Statistics Centre, the retail, wholesale and repair segment accounted for 30.7% of GDP in 2011, up slightly on 30.1% in 2010 and 29.7% in 2009, and much of which is accounted for by the high-end segment. The emirate acts as a retail centre for the region, especially in the case of luxury goods, which either may not be available in other countries, or if so, may be markedly more expensive.…

Analysis

Market reorientation: An expanding role for Chinese products and Chinese shoppers
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As Dubai’s retail segment continues to grow, the emirate’s connection with its East Asian trade partners is becoming increasingly important. Between 2005 and 2011, the value of direct imports from East and Southeast Asia doubled from Dh58.5bn to Dh116.2bn ($15.9bn to $31.6bn), representing about 26.3% of total direct imports, according to data from the Dubai Statistics Centre (DSC), making the region Dubai’s largest source of direct imports. Free trade zone activity has grown as well. East…

Analysis

The traditional marketplace: Meeting niche demand, souks remain very popular
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While for many, Dubai might be synonymous with shopping malls, the traditional retail format – the souk – is holding up surprisingly well, although the winds of change mean that it has had to adapt to one of the most dynamic retail scenes in the world. Traditionally, the souk, meaning “market” in Arabic, consists of shops arranged along narrow streets, clustered according to the type of goods on offer. This allows for cooperation among wholesalers and retailers, and offers the consumer…

Analysis

Net spending: The emirate is emerging as a regional leader in e-commerce
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As traditional “bricks and mortar” shopping outlets recover from the drop in spending following the global financial crisis, Dubai’s online retail sector is flourishing as consumers increasingly look to the internet to find deals and save money. Indeed, the emirate is emerging as a regional leader in e-commerce. A report by RNCOS shows that over 40% of customers in Dubai shopped online for a range of products – including electronics, insurance and groceries – in 2010. According to…

Analysis

Globally branded: The emirate has become a key destination for international retailers
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While many international retailers in North America and the EU have been forced to tighten their belts over the past three years, their counterparts in Dubai have benefitted from steady expansion. Indeed, the emirate’s international and luxury retailers recovered relatively quickly from the global economic crisis, despite falling incomes throughout the region. This is largely a reflection of the spending power of the local population, which has a substantial number of high-net-worth individuals…