Dubai’s retail sector shows strength
Figures recently released have confirmed the continued strength of Dubai’s retail sector. This is good news for the emirate’s economy which sees its tourism lead growth and the inherently linked retail sector as major contributors to Dubai’s more economically diversified future.
Tourism levels have been increasing month on month for a considerable amount of time. This can be measured by the increase in international air passenger traffic which has increased at an annual rate of 15.5% over the last few years.
Part of the recent surge in tourism has been attributed to the ‘Arab Spring’ which saw tourism leaving countries like Egypt and Tunisia and being re-directed towards Dubai. This has also affected domestic tourism within the Middle East, with a sharp increase in Saudi holiday makers who would have traditionally travelled to Bahrain, now visiting Dubai instead.
However, it isn’t just tourists that are boosting Dubai’s expanding retail sector. Domestic spending is also on the increase. A combination of better market conditions and a recovering economy have created a much better consumer sentiment. With confidence on the rise, Dubai is witnessing a significant improvement in retail revenue.
Industry forecasters expect Dubai’s retail sector to experience 8% growth annually through to 2014, in line with the general improvements also experienced within the aviation industry and hospitality sector.