The UAE consolidates its position among the strongest retail markets in the world
Abu Dhabi, June 7 / WAM / The UAE has established its position as one of the most prominent global destinations for the retail sector, based on a rapidly growing diversified economy, world-class infrastructure, and an integrated system that combines giant shopping malls, digital commerce and modern logistics services.
The expansions witnessed by the largest shopping centers in the country, the announcements of many new shopping centers, the spread of more international brands in the local market, in addition to the development of electronic shopping, are indicators that show the strength of the local retail market and high confidence in it.
International reports indicate that the UAE has become an advanced global model in developing flexible and innovative retail systems that place the consumer experience at the top of its priorities, and strengthen its position as a regional and global center for shopping, business and investment.
The Interregional Center for Strategic Analysis report issued in 2025 expected that the size of the retail market in the UAE would reach $227.1 billion by 2033, supported by a compound annual growth rate of 5.1%, while the “Emark” Research Group reported that the size of the market reached $152.7 billion in 2025, with expectations of it reaching $237.7 billion by 2034.
TechSci Research confirmed that the UAE’s position as a global destination for tourism and shopping, in addition to high-level shopping centers and the presence of international brands, contributes to enhancing the revenues of the retail sector.
Regarding the retail market in Dubai, which is one of the largest in the world, the Cushman & Wakefield report indicated that the market is expanding in all directions, and enters the year 2026 with a high level of depth and momentum, making it among the most flexible and diverse markets in the world.
The report showed that Dubai continues to excel in the luxury retail sector, as Fashion Avenue in Dubai Mall ranks eleventh globally in terms of retail rents.
The Modor Intelligence report indicated that the size of the luxury goods market in the UAE is estimated at $8.5 billion in 2025, with expectations that it will reach $11.86 billion by 2031, with a compound annual growth rate of 5.7% during the period 2026-2031, which reflects the country’s position as a global shopping center supported by an advanced tourism infrastructure and a stimulating business environment.
According to experts and specialists, the UAE retail sector continues to record strong levels of growth and expansion, supported by high purchasing power, significant tourism activity, and the country’s attractiveness for international investments and brands.
PC Mustafa, Chairman of the Board of Directors and Global CEO of ID Fresh Food, said that the UAE has become a leading destination for the global retail sector thanks to a unique combination of purchasing power, the diversity of expatriate communities, and the influx of tourists from various parts of the world, which provides brands with opportunities to reach diverse segments of consumers.
He added that the advanced structure of the retail sector, extending from shopping centers to express delivery applications, provides broad opportunities for brands to grow, while the country’s openness to innovation and its strategic location between East and West contribute to attracting global investments.
He pointed out that the UAE retail sector continues to grow even in light of global economic challenges, thanks to its flexibility and high ability to withstand and recover.
He explained that the integration between digital delivery channels and physical stores provides an ideal environment for business growth and enhances the UAE’s position in the modern retail landscape.
For his part, Anis Abdul Razzaq, co-owner of Al Rasasi Group and founder of the “Kaniza” brand, stressed that the UAE has succeeded in establishing its position as a leading commercial center thanks to its strategic location, economic policies, infrastructure, and international customer base, pointing out that the country represents a major gateway to regional expansion.
He said that the UAE retail sector enjoys exceptional flexibility supported by the strength of local consumption, expatriate communities, tourism flows and the diversification of the economy, explaining that consumer confidence and continued spending remain among the most prominent engines of growth.
He added that the UAE has succeeded in building an advanced retail system that combines luxury physical destinations with accelerated digital transformation, as shopping centers have turned into integrated destinations that combine shopping, dining and entertainment, while the advanced logistical infrastructure, digital payment platforms, e-commerce and delivery services have supported a seamless multi-channel shopping experience that allows brands to reach customers through diverse and interconnected interaction points.
In turn, Zaid Shubailat, Marketing Director at Infobeb, said that the UAE has established its position as a global standard in innovation in the retail sector, through a model that combines digital commerce and traditional retail within a customer-centric system, indicating that this leadership is based on a clear national vision supported by the non-oil sectors’ contribution of more than 77% of the gross domestic product.
He added that the size of the UAE economy exceeding 1.4 trillion dirhams and achieving annual growth rates exceeding 5% reflect the success of long-term economic diversification strategies.
He explained that continued investments in the retail infrastructure and digital capabilities have strengthened the UAE’s position as a leading center for the sector, pointing out that the market is witnessing a shift towards an integrated system focused on improving the customer experience through the harmony of digital and traditional channels.
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