Home to the world’ s biggest mall, traditional souks, and the highest number of food and beverage outlets per capita in the world, Dubai is a shopper’ s paradise. Rated as the second most important retail opportunity after London, Dubai has local iconic malls which are constantly reinventing on their search for new brands and experiences to attract global consumers to spend on fly-and-buy excursions. Added to this is the growing young local population which is ready to splurge on fashion, adding to the retail buzz. In reality, while most other retail markets are finding it difficult to retain shoppers, Dubai is emerging as a shopper’ s paradise! As the buzz around Dubai’ s retail sector increases, the city is expected to see an additional 9,00,000 sq. metre of space getting delivered to retail over the next couple of years through old area expansion or newer shopping area establishments. Footfall and occupancy rates in prime retail space in Dubai have showed no sign of weakening. The nation continues to maintain a healthy retail occupancy rate, indicating continued demand for units in prime malls. Rents are expected to remain
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under pressure over the next 12 months owing to the large volume of potential new supply yet to enter the market.
In the UAE as a whole, the retail landscape is expected to grow at a rate of 3 per cent in 2018, reaching a value of DH 196 billion, which indicates a slight improvement over the predictions made earlier. Significantly, the retail and wholesale sector is the biggest single contributor to its economy. The relationship between retail, real estate, air transport and tourism, is key to the emirate’ s value proposition for consumers and investors. Analysts have predicted the e-commerce growth here to gain further momentum in 2018, for garnering a larger share of retail money the consumers spend.
Looking at the demographic shift, through the new visiting policy implementation, wherein Russian citizens are granted 30-day visit visa, and Chinese visitors’ percentage has increased to 46 %, there is obviously going to be a positive reflection on tourism growth and future business prospects. According to industry watchers, good flight connections, competitive hotel room rates, security, and now, the
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As the buzz around Dubai’ s retail sector increases, the city is expected to see an additional 9,00,000 sq. metre of space getting delivered to retail over the next couple of years through old area expansion or newer shopping area establishments. |
visa on arrival are all driving the growth of Chinese tourists to Dubai.
The city boasts of being the Middle East’ s shopping hub and houses more than 70 shopping malls, including the Dubai Mall which is the world’ s biggest shopping complex by total area. The Annual Dubai shopping festival has become a major tourist attraction. According to Mastercard, tourists splurged US $ 28.5 billion last year in Dubai. It predicts that the figure is expected to go up by 10 per cent this year.
On the fashion industry front, Dubai continues to advance with places like d3, Dubai Design District, dedicated to the design community including start-ups, entrepreneurs and established international designs. Luxury and fashion brands and initiatives such as Dubai Design & Fashion Council have helped elevate local and regional talent. The fashion industry here is in a positive growth phase. This has added to the awareness of fashion and the concept of designer wear.
A few years back, Arab consumers spent US $ 320 billion on luxury fashion. The number is expected to rise to US $ 490 billion by 2019. The UAE and its fresh, growing market promotes local homegrown
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