Dubai has retained its position as the second-most important international shopping destination globally for the fifth consecutive year this time, and continues to grow at a fast pace so as to achieve the status of world’s top retail destination next year, as the gap between Dubai and the top-most London is narrowing rapidly.
In comparison to last year, Dubai marked the presence of 55.7 percent of international retailers, while London was at 57.9 percent, which implies that the gap between the two cities is narrowing rapidly, and the emirate may soon dethrone London from the top spot next year, if this pace of growth continues.
The 2016 edition of 'How Global is the Business of Retail' by CBRE reveals that Dubai has drawn 38 new international brands with high profile retailers including All Saints and Old Navy.
Majority of brands in Dubai originate from Europe (62.6 percent) and US (60.6 percent) with less number from Asia and Middle East, potentially attributed to the economic situation in the home markets.
Abu Dhabi also featured high on the list of European and APAC retailers with 40.6 percent and 11.8 percent of retailers in the market in 2015 respectively. With several retailers from the continent, preferring to focus on growth at home, Dubai has once again been the most infiltrated city by a large and growing margin, with 23.5 percent of all APAC brands in the city.
Other Middle Eastern cities are also popular destinations for APAC retailers, with Abu Dhabi, Kuwait City and Doha among the top five.
The Managing Director, CBRE, Nick Maclean, said that the global connectivity of Dubai, and its stature as a hub for trade between East and West has clearly boosted the retail sector. Over the past decade, the emirate has established itself as a globally recognized retail tourism destination drawing millions of visitors from across the globe every year.
The emirate has now become synonymous with shopping, and is home to majority of world's prestigious brands. Dubai has strengthened its position as the ideal choice for international brands seeking to enter the region and widen their footprint to rollout their brands and concept stores, he said.
Mid-range fashion retailers remained most active globally. The American retailers have been most expansive in recent years, with brands from this region targeting major markets like Dubai, Zurich and New Delhi.
The Chief Executive Officer of Majid Al Futtaim, Rajiv Suri, said that in the current economic climate, luxury sector has softened, while mid-range fashion and value sectors are key sectors to develop as retailers extend their footprint outside of the UAE.
In the CBRE's F&B report released last month, UAE residents ranked as third biggest F&B spenders, thereby positioning a positive outlook for F&B sector.
The President and CEO of Dubai Chamber of Commerce and Industry, Hamad Buamim, said that the global constitution of Dubai involving more than 200 nationalities have rendered the emirate a distinct flavour, making it particularly receptive to the establishment of brands from across the world.
Dubai has drawn the best-in-class retail houses with its business friendly atmosphere, and ease and efficiency of doing business, and its safe family-friendly and multicultural environment. Dubai also offers advanced infrastructure for retail business, and is a gateway to the wider GCC and MENA region through which brands can easily enter, with retail constituting about one-third of Dubai's GDP, Buamim emphasized.
