Retail and E-Commerce| Industries

World-renowned shopping destination

Dubai is a global and regional destination for brick-and-mortar retail and e-commerce. In 2023, more than 17 million tourists visited the city to enjoy its upscale retail experiences, making it a haven for luxury shopping.

At the core of Dubai's retail sector is a steadfast commitment to luxury, propelling regional growth. With the government's pro-business policies and wholesome consumer confidence, the city hosts a diverse array of global and regional giants. Shoppers revel in a rich tapestry of choices, from esteemed luxury labels like Hermes and Richard Mille to beloved consumer brands like Nike and Adidas, facilitated seamlessly by platforms like Amazon, Noon and Namshi.

Driving economic growth and progress

Dubai's growing retail industry plays a key role in driving its thriving economy; it is one of the main sectors contributing to the city's GDP placing it as a destination of choice for business expansion into the $1.5 trillion MENA consumer spending market.

In recent years, a large influx of HNWIs and private wealth have fueled significant demand for retail and e-commerce services. Dubai's retail industry has also created more than 250,000 jobs, driven by decades of retail capital expenditure and rapid digitalisation, and is expected to grow by more than 6% through 2029.

Booming e-commerce sector

Dubai’s e-commerce landscape has experienced exponential growth in recent years. Large companies and SMEs have benefited from its business-friendly ecosystem, which offers easy access to workplaces, order fulfilment and diverse delivery solutions.

The sector is anticipated to witness sustained growth momentum over the next three years, with 12% growth for e-commerce and social commerce. This is expected to boost the diversity and number of players in the ecosystem and attract tech companies and providers that can pioneer innovative solutions for the e-commerce market.

Accelerating growth with strategic initiatives

The government is focused on positioning Dubai as a global epicentre for e-commerce, making it a key contributor to the UAE’s e-commerce sector, which is the fastest growing worldwide. Initiatives and projects like Dubai’s e-commerce strategy and the launch of the DMCC e-commerce ecosystem aim to catalyse e-commerce growth across the MEASA region and solidify Dubai’s position as the region’s primary global logistics hub, drawing increased foreign direct investment.

These developments are also supported by the introduction of a new e-commerce law that outlines more explicit regulations on the interaction between e-commerce platforms and customers. This will enable a more seamless operating ecosystem for e-commerce activities, boost the overall economy and improve competitiveness.

Robust consumer confidence

Dubai's retail and e-commerce ecosystem continues to prove its resilience with strong consumer confidence in the sector. According to the World Travel and Tourism Council, tourists to the UAE are the world's biggest retail spenders, spending nearly three times the global average per trip.

The city also boasts the region's largest duty-free operator, Dubai Duty Free, which brought in nearly US$2 billion (AED7.8 billion) in sales in 2023, Dubai Duty Free's 40th anniversary.

Unparalleled luxury shopping hub

The GCC's retail landscape attracts billions in revenue each year. Amid this, Dubai stands out as the leading destination for luxury retail shopping. Recent research shows that 70% of consumers in the Middle East have increased their spending on luxury goods, compared to just 53% across more mature markets like Europe and the US.

Dubai's innovation-focused business landscape and recognised status as a retail hub have made the city a destination for regional and global brands looking to expand into the regional consumer spending market, valued at US$1.5 trillion (AED5.5 trillion).

Tech innovation in retail

Dubai’s retail scene is undergoing a tech revolution, supported by the government’s focus on adopting the latest technologies to remain competitive and cater to evolving consumer demands. Biometrics has been introduced as a payment option, with customers being able to pay using facial recognition software instead of traditional payment methods. Additionally, the emergence of “phygital stores” provides a unique shopping experience, combining online and traditional in-person shopping.

Strategic initiatives such as the Dubai Future Foundation’s ‘Future of Luxury Retail’, created in partnership with Richemont, aim to propel start-up-based tech innovation in the luxury retail market. The focus is to provide a platform for entrepreneurs to ideate new and effective modes and solutions to enable further growth in the sector.

The Global Retail Summit: shaping the future of retail

In addition to Dubai’s well-known shopping festivals, the Dubai Chambers also organises the annual Global Retail Summit. As the premier platform that explores modern trends shaping the retail industry, the summit brings together industry leaders, experts, policy-makers and officials.

The summit aims to promote sustainability, enhance customer engagement, integrate new technologies, and improve digital infrastructure. The 2024 edition is expected to feature over 800 attendees from 64 countries and present an array of insightful round tables, panel discussions and exclusive networking opportunities for retailers and e-commerce companies.

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