The retail sector in the emirate of Dubai is projected to deliver an annual growth of ten per cent over the next five years.
Retail spaces at new commercial centres and malls are expected to expand by 30 to 40 per cent, according to industry sources.
The growth of Dubai’s retail industry is driven by urban expansion across all regions of the emirate, especially in areas adjacent to the location where Expo 2020 will be held, the sources told Al-Ittihad.
They added that urban expansion requires more shopping centres and malls, in order to accommodate the needs of the growing population that has started to move in.
According to a recent Euromonitor International study, the value of the United Arab Emirate’s retail trade sector amounted to $120.8 billion in 2014. The study noted that the sector has been on an upward trend since 2009, with growth rates doubling in the past few years.
The study further indicates that growing population and higher salaries contributed to increasing consumer spending. Furthermore, the rising number of tourists and the absence of taxes on retail trade helped the sector to maintain its growth momentum and become one of the prime movers of the emirate’s economy.
($1 = AED3.67, at the time of publishing)