Shoppers, there are more deals in Dubai than you actually know
dubai — Discount sales, raffle draws, instant prizes, and tasting and sampling have been among the most popular strategies used by Dubai’s retail sector in the third quarter to boost sales.
Permits for such marketing activities accounted for the lion’s share of the promotions permitted in Dubai during the third quarter of 2016, reflecting the diverse range of strategies retailers resort to overcome the general showdown in sales.
Overall, Dubai’s Department of Economic Development issued 39,000 permits in the third quarter for varied activities ranging from retail to exhibitions.
The DED said it saw a 10 per cent increase in permits issued for various business activities during the third quarter of 2016, compared to the same period in 2015.
During the quarter, retail trade witnessed a 213 per cent growth in discount sales and special offers to 1,647 from the 526 permits issued in second quarter 2015. Promotional campaign permits saw a 99 per cent increase, and trade fair permits rose 23 per cent.
“The significant rise in permits issued is largely due to the improved flexibility of procedures as well as the rise in the number of outlets for receiving commercial permit requests to 18,” said Walid Abdul Malik, director of Commercial Permits Management at the DED.
“The increase in the number of commercial permits indicates the success of the various initiatives being launched by the Department of Economic Development to improve ease of doing business in line with the economic development strategy of Dubai. The DED seeks to continuously build confidence among investors and business owners as well as enable them to promote their products and services across Dubai,” Abdul Malik said.
The nature of permits that were high on demand in the third quarter 2016 also reflected the growing interest among retailers to explore diverse options, Abdul Malik added.
“Permits for raffle draws, instant prizes as well as tasting and sampling accounted for the lion’s share of the promotions permitted during the third quarter of 2016. Nearly 55 per cent of the 1,320 instant prize permits were related to travel campaigns and the rise in diverse retail activity permits varied from 30 per cent to 183 per cent.”
Consumers in Dubai seem to be more optimistic on the overall state of the economy and job prospects compared to six other leading cities in the world in a recent analysis of consumer confidence conducted by the DED in Dubai.
The study showed that the overall Consumer Confidence Index for Dubai stood at 142 points during the second quarter of 2016, higher than that of Tokyo, Milan, Paris, New York, Bangkok and London. It was also a significant leap from the CCI score of 138 recorded in Dubai during the last quarter of 2015.
Khalid Al Marri, senior manager for commercial permits at the DED, said the third quarter results also point towards growth in spending on advertisements.
“The largest increase of 48 per cent was in permits for banner ads and electronic ads came second with 44 per cent increase. Naming of internal roads and newspaper advertisements also fall into this category.” Al Marri also referred to the 23 per cent rise in trade fair permits, adding that the exhibitions industry in Dubai is also on a growth path. Overall, the activities permitted and growth in the number of permits indicate a robust private sector and dynamism of business in Dubai, and the UAE in general.
“The DED has increased the number of outlets to receive requests from business owners and facilitate customer access to our services, from eight in 2015 to 18 presently. It is a 125 per cent increase and has led to substantial growth in the number of transactions completed.”