UAE Retail Market

UAE Retail Market Overview:

The UAE retail market size reached US$ 138 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 219 Billion by 2032, exhibiting a growth rate (CAGR) of 5.30% during 2024-2032. The market is driven by the growing demand for luxury products, along with the thriving e-commerce industry in the country.

UAE Retail Market Trends:

Increasing Demand for Luxury Products

According to the IMARC Group’s report, the UAE luxury market reached US$ 4.0 Billion in 2023. The UAE has a high GDP per capita, resulting in large disposable income for citizens. This financial power allows a sizable section of the population to purchase luxury items. The UAE has a big population of rich expatriates who love premium brands. These expatriates frequently seek out high-end things that reflect their status and lifestyle. The UAE is a popular global tourist destination, attracting millions of people each year. Many tourists come particularly to shop, including luxury shopping. The existence of world-class shopping complexes and premium stores meets this demand. Cities, such as Dubai and Abu Dhabi, are emerging as important retail hubs in the Middle East. The presence of multiple flagship stores for international luxury brands draws both domestic and foreign customers.

The UAE has a strong cultural appreciation for luxury and high-end products. Luxury products are frequently viewed as a status symbol, which is driving the demand among both natives and expats. The UAE has some of the world's most luxury shopping complexes, including The Dubai Mall and Mall of the Emirates, which feature a wide range of high-end goods. These malls offer an appealing shopping experience for affluent people. The efforts to diversify the economy away from oil by governing agencies are resulting in considerable investments in the retail sector, notably luxury retail. Tourism and business promotion initiatives are catalyzing the demand for premium retail products.

Thriving E-Commerce Industry

An article published in 2023 on the official website of the International Trade Administration (ITA) shows that e-commerce market reached 53% in 2020 with a record of $3.9 billion in e-commerce sales, which constituted 10% of total retail sales. E-commerce platforms offer 24/7 access to a diverse choice of products, allowing people to purchase from the comfort of their own homes. This convenience is resulting in increased online spending. Online businesses can offer a wide range of products than traditional stores. This variation appeals to buyers looking for specific or niche products that may not be available locally. The UAE has high internet penetration and smartphone usage, which makes online purchasing easier. Advanced technologies, such as AI, machine learning (ML), and big data analytics improve the online buying experience by providing tailored recommendations and targeted marketing.

E-commerce platforms frequently provide competitive prices, discounts, and promotions that appeal to customers. Flash sales, holiday bargains, and exclusive online discounts increase visitors to online retailers. E-commerce allows users to buy products from worldwide markets, broadening their options beyond local ones. This is driving the demand for international brands and products in the UAE. Efficient logistics and quick delivery services are increasing the trustworthiness and popularity of online buying. Major e-commerce businesses offer same-day or next-day delivery, which increases customer satisfaction and drives repeat orders. The availability of secure and various digital payment options, such as mobile wallets and contactless payments, is accelerating the rise of e-commerce. This convenience encourages more people to shop online.

UAE Retail Market News:

• May 2024: HSBC announced the launch of its new e-commerce digital payment platform Omni Collect in the UAE in partnership with leading Saudi-based fintech player, Geidea.
• April 2024: Ferrero Rocher announced the installation of dedicated travel retail platforms in Dubai’s and UAE’s International Airport.
   

UAE Retail Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country level for ​2024-2032​. Our report has categorized the market based on product and distribution channel.

Product Insights:

• Food and Beverages
• Personal and Household Care
• Apparel, Footwear and Accessories
• Furniture, Toys and Hobby
• Electronic and Household Appliances
• Others
   

The report has provided a detailed breakup and analysis of the market based on the product. This includes food and beverages, personal and household care, apparel, footwear and accessories, furniture, toys and hobby, electronic and household appliances, and others.

Distribution Channel Insights:

• Supermarkets and Hypermarkets
• Convenience Stores
• Specialty Stores
• Online Stores
• Others
   

A detailed breakup and analysis of the market based on the distribution channel have also been provided in the report. This includes supermarkets and hypermarkets, convenience stores, specialty stores, online stores, and others.

Regional Insights: 

• Dubai
• Abu Dhabi
• Sharjah
• Others
   

The report has also provided a comprehensive analysis of all the major regional markets, which include Dubai, Abu Dhabi, Sharjah, and Others.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

UAE Retail Market Report Coverage:

Key Questions Answered in This Report:

• How has the UAE retail market performed so far and how will it perform in the coming years?
• What has been the impact of COVID-19 on the UAE retail market?
• What is the breakup of the UAE retail market on the basis of product?
• What is the breakup of the UAE retail market on the basis of distribution channel?
• What are the various stages in the value chain of the UAE retail market? 
• What are the key driving factors and challenges in the UAE retail?
• What is the structure of the UAE retail market and who are the key players?
• What is the degree of competition in the UAE retail market? 

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the UAE retail market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the UAE retail market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the UAE retail industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.