DUBAI / WAM
Dubai’s retailing market size in 2015 is estimated to have reached US$35.4 billion, witnessing sustained annual growth rates of 3.5 per cent to 7.5 per cent since 2010, according to an analysis by the Dubai Chamber of Commerce and Industry based on data from Euromonitor International, prepared ahead of the World Retail Congress which will take place next week.
Consumer spending is expected to support the retailing activity to expand by 7.7 per cent in 2016, with growth thereafter at a CAGR of 8.1 per cent until 2020, when retailing sales turnover are expected to surpass US$52 billion.
The analysis states that store-based retailing was behind 98 per cent of the total value of retailing in 2015, and its pace of growth has by large margin outpaced growth of the non-store retailing category since 2010.
“Growing economic prosperity, steady population growth, and rising incomes have all helped to increase consumers’ overall expenditure in Dubai. In addition, the boom in tourist numbers have kept the wholesale and retail sector vibrant. Dubai Chamber has encouraged the development of business in Dubai and promoted Dubai as an international business and retail centre. The Chamber’s research analyses have helped the business community in Dubai identify key market trends to chart their growth plans. The latest analysis on Dubai’s retail market offers vital insights on the prospects available for Dubai’s retail sector,” said Hamad Buamim, President and CEO, Dubai Chamber.
Categorising Dubai’s store-based retailing into non-grocery retail and grocery retail, the Dubai Chamber analysis has valued non-grocery retail at US$22.3 billion in 2015, and grocery retail at US$10.9 billion. It points out that non-grocery retail sales witnessed a strong compound annual growth rate (CAGR) of 7.1 per cent, driven by growing demand which is backed by higher per capita incomes.
The 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.