UAE Luxury Retail

Executive Summary

Luxury retailing is a thriving business in UAE - propelled by affluent locals, splurging expatriates, growing brand-aware youthful population and deep-pocketed tourists. Dubai alone represents 30% of the total Middle East luxury sales, and 60% of the UAE’s luxury sales, and remains the second most important international retail destination, after London. There are 300 retail brands in the UAE, with 80 new ones entering the market between 2014 and 2015, and there are 80 service brands as well. In Dubai, it is estimated that around 471,000sq meter will be added to the present retail space by 2016, including the eagerly awaited Mall of the World. The number of malls has been steadily rising in the UAE, such as Yas Mall in Abu Dhabi in 2014. But increasing rental costs and high competition continue to challenge existing players in the sector. With the world’s highest penetration of Fiber-to-the-home, luxury online retail market is estimated to grow in a big way, in the coming years. The report analyses the current status of the luxury retail in UAE, along with an in-depth discussion of the various segments that form a part of it. It details the methods through which local and international players can set up their outlets, and the various medium used for sale of luxury goods, along with their advantages and disadvantages. The report then elaborates on where the UAE luxury retail is headed, and lists the growth drivers for and the challenges faced by the sector. Finally, it provides a brief on the major business groups that are involved in UAE’s luxury retail market, such as Chalhoub, Damas Jewelery, Rivoli etc., including the brands they represent, and their geographical spread across the region.