With the launch of the 30th edition of the Dubai Shopping Festival today, the emirate once again emerges as the number one shopping destination in the region and the world. This festival, which began in 1996, was not just a marketing event, but rather became a symbol of the innovation and development that led Dubai to establish its position as the capital of shopping par excellence.
The question that arises is: “What makes Dubai exceptional in this field?” The answer is that there are several main reasons that have made Dubai gain this reputation and global appeal in the field of shopping, most notably: the emirate’s investment in a world-class infrastructure in the retail and entertainment sector, developing the festival to become a global platform awaited annually by shopping enthusiasts, the strategic location and global connectivity, accumulated experience over thirty years in providing an exceptional experience for tourists and shoppers, the huge diversity of traditional and luxury options, a proactive government vision for the future, and the adoption of technology and innovation in all stages of the shopping process.
Infrastructure
Over the past decades, Dubai has invested in world-class infrastructure in the retail and entertainment sector. The emirate has huge shopping malls that are among the largest and most luxurious in the world, such as Dubai Mall, Mall of the Emirates, Ibn Battuta Mall, Dubai Hills Mall, Mercato Mall, Dubai Festival Mall, Marina Mall, Souk Al Bahar and City Centre Mirdif, which offer not only a shopping experience, but also a complete entertainment experience that includes family activities, fine dining and the latest cinemas.
ValuStrat global data indicates that the number of shopping centres and malls of all levels in Dubai is 135, while occupancy levels reach record rates of about 98% in major centres.
Statistics indicate that the number of shoppers doubles with the launch of the Dubai Shopping Festival, while sales jump to levels ranging between 30 and 40%, as stores and malls across the emirate seek to provide the best experience for shoppers and expand the options and offers provided compared to other seasons of the year.
Global event
Today, the Dubai Shopping Festival has become a global platform and an event awaited annually by shopping enthusiasts, due to the huge discounts, dazzling entertainment shows, and daily raffles for huge prizes, which attract tourists from all over the world, especially shoppers from the Gulf Cooperation Council countries. Dubai stands out as the only Gulf city among the top six global retail destinations, including London, Milan, New York, Seoul and Tokyo, where direct per capita retail spending amounts to between $8,000 and $18,000 annually. The retail sector in Dubai also contributes about 24% to the GDP, and employs up to 20% of the workforce.
Global Connection
Dubai’s strategic location and global connectivity provide it with a competitive advantage over other centres in the region. With its geographical location between Asia, Europe and Africa, Dubai is a vibrant hub that is easily accessible from all over the world. With Dubai International Airport, one of the world’s busiest airports, visitors can easily access it to enjoy an unforgettable shopping experience.
Over the past decades, shoppers from the Gulf States, the wider Arab region, and many countries in Asia and Africa have been waiting for this unique festival. The shopping options and depth of their concentration in Dubai cannot be compared to anywhere else in the region, especially when talking about competitive prices, exclusive discounts, world-class brands, prizes and competitions. Shopping in Dubai is an opportunity that many seek to exploit, as it is not available anywhere else.
Over the past 30 years, Dubai has accumulated an exceptional and unparalleled accumulated experience and knowledge in providing a comprehensive experience for tourists and visitors who come to it for shopping. The festival is not limited to shopping only, as its name suggests, but the city offers a comprehensive experience that includes luxury tourism, cultural activities, and global attractions such as Burj Khalifa, The Dubai Fountain, JBR, City Walk, and Palm Jumeirah, making the city an integrated destination.
In addition to the huge variety of options available, whether you are looking for luxury brands or traditional markets such as the Gold Souk and the Spice Souk, Dubai offers options to suit all tastes and budgets, which enhances its popularity among different segments.
Government vision
The Dubai government has adopted a proactive vision to transform the city into a global shopping and tourism hub, with huge investments in infrastructure and global marketing campaigns that enhance the emirate’s position. Within a few years, it has been able to establish itself as a major shopping destination in the world, competing at a high level with London, Paris, New York, Madrid, Singapore and Hong Kong.
Last June, Emaar announced a new expansion of Dubai Mall worth AED 1.5 billion, which includes the addition of 240 stores and a large number of restaurants and cafes. It is worth noting that Dubai Mall, which is considered one of the main shopping destinations in the emirate, achieved a record achievement during the year 2023 by becoming the most visited place in the world, attracting 105 million visitors, an increase of 19% over the previous year.
Technology and Innovation
Dubai is one of the world’s leading cities in using and adopting technology and innovation in all economic fields, including improving the shopping experience, starting from advanced electronic payment to using smart applications to follow offers and discounts, which makes the shopping experience more comfortable and smooth.
Dubai is now home to some of the world’s biggest tech and e-commerce companies, from Amazon to Alibaba and Noon, while local companies such as Emaar, Al Futtaim Group and Nakheel regularly develop innovative experiences for visitors and shoppers to make the experience smoother, more convenient and more engaging.
Exceptional growth
“Majid Al Futtaim is proud to partner with Dubai Festivals and Retail Establishment to create dynamic and immersive experiences for residents and visitors from around the world during Dubai Shopping Festival 2024-2025,” said Fouad Sharaf, Managing Director of Shopping Malls in the UAE at Majid Al Futtaim Properties. “Our commitment to this unique event goes beyond providing offers during the festival, as we seek to contribute to and enrich the emirate’s growing tourism and retail sectors, with the aim of providing unforgettable moments and experiences in our shopping malls.”
Sharaf expects Dubai’s retail and shopping sector to witness significant growth during the fourth quarter of 2024. This period usually witnesses increased activity due to several factors, as Dubai maintains its position as one of the most prominent destinations for global tourism, especially with the moderate temperatures coinciding with the end of the year approaching. The end-of-year celebration season, including the holiday season, New Year’s celebrations, and the start of the Dubai Shopping Festival, usually leads to an increase in consumer spending. In addition, Dubai continues to attract visitors from all over the world thanks to its established reputation as a global shopping center.
“It is logical to see tourism growth in Dubai going hand in hand with retail, and I expect this momentum to continue strongly in Q4 2024. Shopping malls play a crucial role in providing diverse experiences, including retail, entertainment and leisure, and given the emirate’s ever-evolving retail landscape and its reputation as a global shopping destination, we can expect a strong performance and promising period for the sector this year as well. Given current trends, we are projecting growth in Q4 compared to Q3, largely driven by the end-of-year celebrations and a significant increase in tourist numbers during this period, which is full of events and celebrations. This period is always characterised by increased consumer spending in the lead-up to the celebrations, especially as people seek to take advantage of seasonal promotions,” Sharaf said.
He continued: “Thanks to government initiatives, a number of key factors are coming together to drive the growth of Dubai’s retail sector, most notably the emirate’s strategic location and its position as a global hub for tourism and business. The continued influx of tourists, especially during peak seasons, ensures a high turnout at shopping malls, which is clearly reflected in retail sales. Dubai’s commitment to innovation and digital transformation in retail, including the integration of e-commerce and digital experiences within stores, also contributes to enhancing consumer engagement and convenience.”
Exceptional experience
In turn, Nisreen Boustani, Director of Public Relations and Corporate Communications at Mercato and Town Centre Jumeirah, told Al Bayan: “We are considered one of the most prominent and oldest strategic partners of Dubai Events and the Dubai Shopping Festival since 1996 until today, and through our centers we seek to provide the best experience for shoppers and visitors during the festival period, starting with fireworks, prizes, discounts and exclusive offers. She added: There are more than 200 stores and shops preparing to offer discounts starting from 25% to 75% on a wide range of products in the fashion, fashion and gifts sectors, and we have also launched the “Shop and Win” competition to encourage visitors to shop during the festival.
She stated that the number of visitors increases at a record rate during the festival period, while sales grow by up to 30%, as many visitors seek to take advantage of the festival opportunity to seize the most prominent exclusive deals offered by our stores and shops.
She stressed that the Dubai Shopping Festival has gone through many major stages since its launch, as its reputation and popularity have doubled on the regional and international levels. Today, the festival attracts visitors and tourists from all over the world, from Asia, Europe and Africa, especially India and Russia, in addition to Gulf tourists and visitors who have been considered, over the past years, among the most prominent shoppers and visitors to the festival from all age groups.
She pointed out that the Dubai Shopping Festival has established Dubai's position as a regional and international shopping capital and has become an event awaited by many around the world, noting that the emirate offers an exceptional and immersive experience to visitors annually, competing with all major centres and cities around the world.
For a detailed perspective on the property market, visit: Dubai - VPI Residential Capital Values -November 2024
