UAE Retail Market to Grow with a CAGR of 6.2% through 2029
UAE Retail Market is being propelled by the growing
demand for convenience foods and growing demand for healthy food options.
According to TechSci Research report, “UAE Retail
Market - Industry Size, Share, Trends, Competition Forecast &
Opportunities, 2029”, the UAE Retail Market stood at USD 30.17 billion in
2023 and is anticipated to grow with a CAGR of 6.2% in the forecast period,
2025-2029. The UAE retail market is a dynamic and diverse sector that plays a
pivotal role in the country's economy. Known for its luxury shopping, tax-free
environment, and a multicultural consumer base, the UAE boasts an array of
modern shopping malls, traditional souks, and international and local brands.
Dubai and Abu Dhabi serve as major retail hubs, attracting tourists and
residents alike. The growth of e-commerce, coupled with the COVID-19 pandemic,
has accelerated the shift towards online shopping, leading to increased
competition and innovation. Sustainability and regulatory changes are also
influencing the market, as consumers and the government alike focus on
responsible consumption and ethical practices.
Browse over XX market data Figures spread
through 83 Pages and an in-depth TOC on "UAE Retail Market.”
The UAE's retail sector is characterized by its
multicultural and affluent consumer base. The country is home to a vast
expatriate population, each bringing their unique tastes, preferences, and
consumer habits. This diversity in the consumer landscape has spurred demand
for a wide variety of products and services, ranging from international luxury
brands to niche and specialty items. The UAE's population's purchasing power,
fueled by a healthy GDP per capita, further contributes to the retail sector's prosperity,
making it an attractive market for businesses both local and international.
One of the unique aspects of the UAE's retail market
is its tax-free shopping environment. This draws in tourists from around the
world, creating a significant source of retail revenue. The country's role as a
global tourist destination makes it a shopping paradise, offering visitors the
opportunity to indulge in luxury goods, electronics, fashion, and more without
the burden of taxes. This tax-free shopping status, in addition to other
initiatives and events such as the Dubai Shopping Festival, further stimulates
the retail market and boosts the tourism industry.
The government of the UAE recognizes the importance of
the retail sector in economic diversification. As a result, significant
investments have been made to develop the retail and tourism industries. These
investments have resulted in world-class shopping destinations and a thriving
retail landscape. The government's economic diversification strategy aims to
reduce the country's reliance on oil revenues and stimulate growth in non-oil
sectors, making retail a central component of this diversification.
E-commerce has emerged as a powerful force in the
UAE's retail market. The country has one of the highest internet penetration
rates globally and a tech-savvy population that eagerly embraces online
shopping. The COVID-19 pandemic expedited the adoption of e-commerce as
consumers sought the convenience and safety of digital shopping channels. To
cater to this growing demand, both traditional retailers and pure-play
e-commerce companies have expanded their online presence, offering a wide range
of products and services.
The trend of e-commerce is closely aligned with the
increasing use of digital technology and innovation in the retail sector.
Retailers are implementing technologies such as augmented reality for virtual
try-ons, artificial intelligence for personalized recommendations, and chatbots
for instant customer assistance. The integration of online and offline shopping
experiences is a hallmark of the retail landscape, with retailers investing in
omnichannel strategies to provide consumers with a seamless, unified journey.
One of the standout features of the UAE retail market
is its emphasis on luxury and premium offerings. The country caters to a
significant population of high-net-worth individuals and a thriving tourism
sector. The retail market in the UAE has become synonymous with luxury, and
brands have established flagship stores, offering high-end fashion, jewelry,
and lifestyle products. The allure of luxury shopping, along with exclusive
services and unique in-store experiences, continues to draw discerning clientele
from around the world.
Retailers in the UAE recognize the importance of
personalization and customer experience in attracting and retaining consumers.
As consumer preferences evolve, there is a growing demand for personalized
shopping experiences. Retailers leverage customer data to provide tailored
marketing campaigns, product suggestions, and promotions. This personalization
enhances customer loyalty and drives sales as customers feel more connected to
the brand. In physical stores, retailers are creating immersive shopping
environments, including pop-up stores, interactive displays, and experiential
retail spaces, to provide customers with memorable shopping experiences.
UAE
Retail market is segmented into type, type of market, sales channel, and region.
Based on type of market, the market is segmented into organized,
and unorganized.
Major companies operating in UAE Retail market are:
- Majid Al Futtaim
Group
- Lulu Group
International
- Union Cooperative
Society
- Spinneys Dubai
LLC
- Landmark Group
- Azadea Group
- Amazon (Souq)
- M.H. Alshaya
Company (Al Shaya Group)
- Fathima Group of
Companies
- Al Maya Group LLC
Download Free Sample Report
Customers can also request for 10%
free customization on this report.
“ The UAE retail
market is a thriving, diverse sector known for luxury shopping and a
multicultural consumer base. Dubai and Abu Dhabi are key retail hubs, hosting
modern malls, traditional souks, and a wide range of international and local
brands. E-commerce has seen rapid growth, particularly due to the COVID-19
pandemic, prompting retailers to enhance their digital presence. Sustainability
and ethical consumption are gaining importance, with consumers seeking
eco-friendly products and responsible business practices. The UAE's retail
landscape continues to evolve, driven by changing consumer preferences, online
sales growth, and a focus on sustainability and high-end experiences.” said Mr.
Karan Chechi, Research Director with TechSci Research, a research-based
management consulting firm.
“UAE Retail Market By Type (Food Retail,
Non-Food Retail), By Type of Market (Organized, Unorganized), By Sales Channel
(Supermarkets/Hypermarkets, Online, Baqala Stores, Departmental Stores,
Exclusive Stores, Specialty Retailers) By Region, By
Competition Forecast & Opportunities, 2019-2029F, has evaluated
the future growth potential of UAE Retail market and provides statistics &
information on market size, structure and future market growth. The report
intends to provide cutting-edge market intelligence and help decision-makers make
sound investment decisions. Besides, the report also identifies and analyzes
the emerging trends along with essential drivers, challenges, and opportunities
in UAE Retail market.
Contact Us-
TechSci
Research LLC
420
Lexington Avenue, Suite 300,
New
York, United States- 10170
M:
+13322586602
Email: [email protected]
Website: www.techsciresearch.com