Dubai expects positive retail business

Ritika Sharma / Emirates Business

On the sidelines of Dubai Chamber’s analysis that confirmed UAE retail market size at US$35.4 billion in 2015, retailers across UAE say they will be investing more in business as they expect 2016 to be favourable too.
The analysis said that Dubai witnessed sustained annual growth rates of 3.5 percent to 7.5 percent since 2010, raising expectations of retailers who were earlier sceptical about a rewarding business this year.
Sanjay Kapoor, general manager Oasis Mall told Emirates Business, “I think the strong economies of the region will boost consumer confidence and spending and with Dubai emerging as major global destination, more tourists are expected to pour to the city. Also, Dubai keeps dazzling the world with its infrastructure, exotic building structures and a hectic annual calendar of global events and initiatives, all these appeal to an international audience both for living and visiting.”
Added to that, shopping in Dubai “isn’t a need; rather, it’s part of the city’s convenient lifestyle” especially that disposable income in the UAE is high, he opined.
“Visibly, UAE has over a 100 malls, of which a hefty share goes to community malls. The number of such malls is expected to rise as out of the properties that are under construction or planned are community malls,” he added.
This year, Oasis expects significant sales growth as the mall plans a lot of changes, which are aimed at consolidating its convenience and value for customers and eventually increase footfall and sales.
Consumer spending will increase the retailing activity by 7.7 per cent in 2016, with growth thereafter of 8.1 percent compound annual growth rate until 2020, when retailing sales turnover are expected to surpass US$52 billion.
“Growing economic prosperity, stable population growth and growing incomes have together elevated consumer expenditure in Dubai. This is buoyed by the increase in number of tourists and this in turn has added revenues to the retail sector,” said Rohan Kanth, an independednt research analyst based in Dubai.
The Dubai Chamber analysis attributes Dubai’s trendy, youthful population as a major factor for this growth, considering that this segment of the population keeps up to date with the latest trends in many retail product categories such as apparel, footwear, health and beauty products, as well as luxury products.
“Moreover as Dubai government is striving to enhance tourism growth, it is encouraging time for new business to invest in retail, tourism and hospitality sectors of Dubai and UAE on the whole. 2016 will be equally resilient no matter what oil prices do to other businesses,” Kanth added.