UAE retail gets a tourism, infra boost

Sunaina Rana / Emirates Business

The UAE, with its rapidly-growing infrastructure and socio-economical factors, has been ranked among
the most attractive retail markets around the globe. Tourism in the country also plays a vital role in promoting its retail sector, say experts. A surge in the number of high-end retail malls has also proved lucrative, bringing in foreign investors.
Moussa El Hayek, Chief Operating Officer, Al Bustan Centre & Residence, told Emirates Buisness, “We see high volumes of tourist flock to Dubai for their holidays every year. The retail potential is humongous in which tourist contributions stand at AED12.5bn, which is an average of AED1,000 per visitor. Dubai is home to more than 55 percent of the world’s top international retail brands, thus making it the most important and dynamic retail environments in the world.” He added, “With expo 2020 around the corner will surely not only help increase the tourism in this emirate but will surely have a positive impact on the retail in Dubai.”
The Arcadia index says automotive retail is enjoying a boom. It cited the 31% increase in Q2 sales of Infiniti. The UAE retail market is evolving and has been ranked among the top luxury markets in the Middle East.
Also, the Emirates has been ranked first in the Middle East and eighth globally as the most attractive market for retailers. This rating has been given between the 50 most
influential markets worldwide, where the marketers wish to establish or look at a potential target for their products.
Maitha Al Dossari, Chief Executive Officer of Emaar Entertainment LLC, “The UAE has one of the most popular potential entertainment and leisure across the world, whereas Dubai has all the key elements for a vibrant leisure and entertainment sector and demand from international visitors is driving further growth. As the E&L markets accelerates its pace and develop rapidly, the booming infrastructure has been acting as a magnet to the tourist which has definitely being contributing to the retail industry.”
“Compared to Orlando, regarded as one of the world’s premier theme-park based leisure destinations and which welcomed over 62 million visitors in 2014, The Dubai Mall, a hub for leisure and entertainment welcomed more than 80 million visitors in 2014 and 2015. Furthermore, according to estimates, theme parks alone are expected to generate over US$ 5 billion in annually revenues
by 2020, with the addition of new
experiences.”
The infrastructure of the country has also a vital role to play in the growth of retail market. Further,
the study stated that the UAE retail is driven by the tourist industry
by the exponential growth in 2014, whereas the infrastructure also
has high calibre boosting the retail industry.
The Emirate’s retail market is among the most significant retail markets across the globe and a prime target for the major retail groups, who aim to expand in their foothold in the UAE. However, the retail sector contributes approximately one third to the country’s GDP and is expected to add another five to six percent 2021. According to the reports the sector was estimated to be worth Dh120.8 billion in 2014, of which Dh70.6 billion was spent on non-grocery items and Dh50.3 billion on groceries.
Nemo Acimovic, General Manager, Millenium Corniche, on the other hand compared the contribution among the retail and tourism, “Tourism plays a significant role in boosting retail. It surely does contribute to the retail business.” Further elaborating on boosting tourism and retail he advised, “By supplying the retail outlets with the needed dedicated customer and that will be through the packages that all tourism sectors are participating in and offering currently.”