Dubai retail sales to exceed $43b by 2021

Dubai Chamber study shows key factors to fuel growth include rising tourist numbers, high footfalls at malls

The value of retail sales in Dubai is expected to reach $43.8 billion (Dh160.7 billion) by 2021, while the emirate’s retail market is projected to record average growth of 5.6 per cent over the 2018-2021 period, new analysis conducted by the Dubai Chamber of Commerce and Industry has revealed.

The analysis, based on recent data from Euromonitor International, Core Savills Research, MasterCard and New World Wealth, showed that Dubai has firmly positioned itself as one of the world’s top shopping destinations, while the interplay between the emirate’s retail, real estate, travel and tourism markets continues to strengthen Dubai’s value proposition for consumers and investors.

Key factors expected to fuel retail sector growth include the rising number of tourists and high occupancy levels at major retail centres and shopping malls, in addition to high per capital income, strong international brand presence and a consumer base that likes to spend on retail, food and beverage and leisure activities.

With more than 60 shopping centres and major international brands, Dubai has the second-highest density of shopping malls in the world ranking only behind New York, thanks to its high visitor to resident ratio.

Mall density in Dubai is nearly 380 per cent higher than that of London and 240 per cent of Paris. This can be attributed to the fact that European markets have a stronger high street market, in addition to a much higher population base.

Dubai is also positioned higher than other Asian markets which have a significant mall stock such as Hong Kong (by 113 per cent) and Singapore (by 56 per cent).

Dubai ranks highest among global retail hubs in terms of international visitors spend according to the MasterCard Global Destination Cities Index.

In 2017, total international visitor spend in Dubai amounted to $28 billion, a figure which is 77 per cent higher than London.

Compared with other global retail destinations, Dubai offers the most competitive prime rents, with an average cost of approximately $8,400 per square metre as of the third quarter of 2017.

International visitor spend in Dubai in 2017