31 March, 2021
UAE Retail Sales Forecast to Reach $58 Billion in 2021
UAE retail sales is expected to increase by 13% and reach $58 Billion in 2021, according to Dubai Chamber of Commerce & Industry.
The Dubai Chamber, supported by data from the independent research firm Euromonitor, has provided a prediction that the retail industry will be boosted by 13% to reach a value of $58 Billion by the end of 2021. The analysis also mentions that in the medium term, and by 2025, the growth will be at CAGR 6.6% and should reach a value of $70.5 Billion.
The overall growth in retail is fueled by in-store retail growth at 5.7% and non-store growth pegged at 14.8%.
The analysis attributes this surge to many reasons. One is the demand for covid vaccination, which is slowly expected to lead to increased trust and comfort in consumer spending. Recently, the UAE Government has provide strong support to all citizens and residents by providing free vaccination in a phased manner. Starting from the frontline workers, elderly and those with physical needs/conditions, the subsequent phases opened up vaccination for all nationalities and all ages. The drive has been very well received by the residents and has led to a feeling of trust in the Government.
The second major reason is the Expo 2020. The major event is scheduled to happen in 2021 after being postponed by a year. This event presents a multitude of opportunities for individuals and companies alike, and that too on a large scale.
Apart from these, the surge in consumer demand and the increased shift to e-Commerce has also led to the surge in retail.
When it comes to e-Commerce, UAE currently leads the Middle East and North Africa region in terms of household spending at $2,554 per household. This is more than double the global average of $1,156, and four times the MENA region average of $629.
Source : emirates-business