UAE market demand rebounds, retail sales to reach $58 billion this year

The Dubai Chamber of Commerce and Industry (DCCI) said in a report that by the end of 2021, UAE retail sales are expected to grow at a rate of 13% to $58 billion. Due to the advancement of COVID-19 vaccination, the 2020 Dubai World Expo, which was postponed to this year, will see a surge in consumer demand in the second half of the year.

Dubai Chamber of Commerce and Industry analyzed the latest data from Euromonitor and believed that the UAE's retail sales are expected to maintain a compound annual growth rate of 6.6% in the medium term, reaching US$70.5 billion by 2025. Among them, the growth rate of store retail is expected to be 5.7%, while the growth rate of non-store retail is expected to reach 14.8%.

The report said that the progress of COVID-19 vaccination in the UAE is expected to boost demand in the second half of this year and attract consumers and tourists to traditional physical stores for consumption. In addition, the 2020 Dubai World Expo will open in Dubai in October this year, which is expected to enable the government to provide support and incentives for businesses at all levels and will also become a key catalyst for the recovery of the retail industry.

In the Middle East and North Africa (MENA) region, the UAE has the highest household e-commerce spending at $2,554 per household, more than double the global average of $1,156 and four times the MENA average of $629.

According to JLL data, Dubai's total retail leasing area reached 110,000 square meters in 2020, bringing the emirate's total retail space to 4.2 million square meters. These data clearly show that the region's retail industry has bucked the trend during the epidemic.

Meanwhile, Abu Dhabi’s retail space stock remains unchanged at 2.8 million sq m. In 2021, Dubai is expected to add 761,000 sq m of retail leasing space, while Abu Dhabi is expected to add 293,000 sq m of retail leasing space by the end of the year.

DCCI said that as new retail space in the UAE continues to open in the short term, with lower rents expected and more options available, the market has become more favourable for tenants, a trend that should support the recovery of the retail business.

According to recent reports from foreign media, as the UAE's COVID-19 vaccination progresses, market demand is expected to rebound in the second half of this year.

The Dubai Chamber of Commerce and Industry (DCCI) said in a report that by the end of 2021, UAE retail sales are expected to grow at a rate of 13% to $58 billion. Due to the advancement of COVID-19 vaccination, the 2020 Dubai World Expo, which was postponed to this year, will see a surge in consumer demand in the second half of the year.

Dubai Chamber of Commerce and Industry analyzed the latest data from Euromonitor and believed that the UAE's retail sales are expected to maintain a compound annual growth rate of 6.6% in the medium term, reaching US$70.5 billion by 2025. Among them, the growth rate of store retail is expected to be 5.7%, while the growth rate of non-store retail is expected to reach 14.8%.

The report said that the progress of COVID-19 vaccination in the UAE is expected to boost demand in the second half of this year and attract consumers and tourists to traditional physical stores for consumption. In addition, the 2020 Dubai World Expo will open in Dubai in October this year, which is expected to enable the government to provide support and incentives for businesses at all levels and will also become a key catalyst for the recovery of the retail industry.

In the Middle East and North Africa (MENA) region, the UAE has the highest household e-commerce spending at $2,554 per household, more than double the global average of $1,156 and four times the MENA average of $629.

According to JLL data, Dubai's total retail leasing area reached 110,000 square meters in 2020, bringing the emirate's total retail space to 4.2 million square meters. These data clearly show that the region's retail industry has bucked the trend during the epidemic.

Meanwhile, Abu Dhabi’s retail space stock remains unchanged at 2.8 million sq m. In 2021, Dubai is expected to add 761,000 sq m of retail leasing space, while Abu Dhabi is expected to add 293,000 sq m of retail leasing space by the end of the year.

DCCI said that as new retail space in the UAE continues to open in the short term, with lower rents expected and more options available, the market has become more favourable for tenants, a trend that should support the recovery of the retail business.

middle East