Dubai continues to excel in the luxury retail sector

The UAE has established itself as one of the most prominent global destinations for the retail sector, based on a diversified, rapidly growing economy, world-class infrastructure, and an integrated system that combines giant shopping centers, digital commerce, and modern logistics services. The expansions witnessed by the largest shopping centers in the country, the announcements of new shopping centers, and 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.

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 entered 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 the “Dubai Mall” shopping center ranks 11th in the world in terms of retail rents.

In turn, 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 between 2026-2031.

The UAE retail sector, according to experts and specialists, 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.

Chairman of the Board of Directors and Global CEO of ID Fresh Food, PC Mustafa, 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, pointing out that the advanced structure of the retail sector, extending from shopping centers to express delivery applications, provides broad opportunities for brands to grow.

For his part, the co-owner of the Al-Rasasi Group, founder of the Kaniza brand, Anis Abdul Razzaq, confirmed that the UAE has succeeded in consolidating its position as a leading commercial center, thanks to its strategic location, economic policies, infrastructure and international customer base, indicating that the country represents a major gateway to regional expansion.

He said, “The UAE retail sector enjoys exceptional flexibility supported by the strength of local consumption and 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.”

In the same context, Marketing Director at Infobeeb, Zaid Shubailat, 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, pointing out 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 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.

Retail market size

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 IMark 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.

For its part, the “TechSci” research company 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, contribute to enhancing the revenues of the retail sector.