According to new research, the UAE has the world’s second greatest potential for luxury spending growth, while at the same time, the value of the county’s retail sector is set to expand by $10 billion (AED36.7 billion) between 2012-2015.
The Knight Frank Wealth Report 2014, outlined global luxury spending trends, naming Qatar, the UAE and Saudi Arabia as the top three fastest growing premium markets in the short to medium term.
Spotlight on luxury
Dubai FDI, part of the Department of Economic Development in Dubai, estimates that the UAE’s retail sector will grow by around 32.9% to reach US$41 billion (AED151 billion) by 2015, driven by a number of factors, including:
- Affluent UAE residents’ high disposable incomes
- A rise in visitors here to spend
- A steady inflow of international retailers
With 82% luxury brand presence, Dubai commands about a third of the entire regional luxury goods market. Additionally, in a show of confidence in Dubai as a premier shopping destination, luxury brands will be vying for travellers’ attention at Dubai’s upcoming Arabian Travel Market (May 5 to 8, 2014), the theme of which will be ‘Spotlight on Luxury’.
Confident in Dubai’s luxury retail future, Emaar Chairman Mohamed Alabbar plans to list Emaar’s shopping retail division. He says: “Today, Emaar’s retail subsidiary is our high-performing business, which derives its growth impetus from the sustained growth of Dubai and its reputation as an international business and leisure hub.”
With a recorded footfall of 75 million in The Dubai Mall alone last year and new luxury retail malls popping up across the country, the UAE’s luxury goods market is poised for very strong growth in 2014.