Sri Lanka Online Radio
   Home      Namal Rajapaksa Paper Dance

 Retailing in the UAE is expected to reach Dh200 billion by 2017, growing by a 5 per cent on average each year, according to an analysis by the Dubai Chamber of Commerce and Industry. Consumer spending is also expected to continue rising in the medium-term, with growth rates projected to stabilise at about 4 per cent on average per year leading to a total spending of more than Dh750 billion by 2017 across many categories, the analysis adds.

The Dubai Chamber analysis, based on data from Euromonitor, information from an ATKearney Research study and other sources, points out that consumer confidence in the UAE has not been negatively impacted by expectations of decelerating economic growth in the region. Data for retail sales and consumer spending indicates that the retail sector is growing faster than the UAE economy as a whole, it says.

The findings of the analysis are significant considering that Dubai is hosting the 10th edition of the World Retail Congress from April 12 to 14, 2016. This is the first time the event is being held outside of Europe.

“The UAE stands out as one of the leading retail centres in the region. Retail is an important pillar of Dubai’s economic diversification strategy, and the Dubai Chamber has launched the analysis on the retail sector as part of its continued efforts to support the business community with the latest statistics and trends to encourage sustained economic growth. The analysis will not only boost the sentiments of the retail sector in the region, but also help raise investor confidence in the market,” said Hamad Buamim, President and CEO of Dubai Chamber.

Retail and wholesale trade in the UAE is an important sector, accounting for more than 11 per cent of the country’s Gross Domestic Product (GDP) and close to 30 per cent of Dubai’s GDP. The Dubai Chamber analysis points out that even if it approaches saturation, the retail market in the UAE is on a growth path as Dubai cements its position in the region as a retail hub. In particular, retail space has increased by 7 per cent during 2014 to reach 1.6 million square metres. Retail sales in the UAE reached Dh173 billion in 2014, growing by more than 6 per cent compared to 2013. This translates to more than Dh20,000 retail sales per capita in a year. Furthermore, there are projects underway to expand existing malls and plans for constructing new malls and further entertainment offerings, the analysis states.
Households in the UAE spent Dh673 billion in 2014, with consumption growing by 6.7 per cent per year in real terms. In nominal terms, spending growth was higher, at 9.2 per cent year-on-year. Those figures indicate a normalisation in consumption patterns, compared to large shifts occurring in previous years. In 2009 and 2012 consumer spending had even registered negative growth. Spending per capita increased by 5.7 per cent to reach more than Dh79,000 in 2014. This means that each person spends on average more than Dh6,500 a month.