UAE Retail Market to Grow at a CAGR of 5.88% through 2027

The increasing presence of online retail channels as well as growing tourism industry to fuel the UAE retail market through 2027F.


According to TechSci Research report, UAE Retail Market - By Region, Competition Forecast & Opportunities, 2017-2027, the UAE retail market stood at USD27.46 billion in 2021 and is anticipated to grow at a CAGR of 5.88% in the forecast period, 2023-2027, to reach USD37.70 billion by 2027. The market's growth is attributed to the heavy support from the tourism industry, an increase in the presence of supermarkets/hypermarkets, and the adoption of advanced technologies by the market players. Also, the growing popularity of private labels among consumers and the increased consumer spending on improving their lifestyle and living standards are further expected to contribute to the UAE retail market growth over the forecast period.


However, the saturated and highly competitive market and increasing demand for the high-end retail industry may restrain the UAE retail market growth in the forecast period. 

 

 

Browse over 38 market data Figures and 4 Tables spread through 97 Pages and an in-depth TOC on "UAE RETAIL MARKET"


The UAE retail market is segmented into type, type of market, distribution channel, region, and competitive landscape.


Based on type, the market is fragmented into food retail and non-food retail. The non-food retail segment is expected to capture the highest market share and grow at a CAGR of 5.13% over the next five years. People in the UAE are spending more money due to the growing disposable income and rising GDP of the country. Rapid urbanization improved living standards, and construction of commercial infrastructure are expected to bolster the segment growth over the next five years.


Based on the type of market, the market is divided into organized and unorganized markets. The organized market dominated the market in 2021 and captured 89.34% of the overall market share. The segment is expected to maintain its dominance over the next five years, 2023-2027. UAE is a global hub for over 1,500 American companies doing businesses throughout the Middle East, Africa, Asia-pacific and Europe. Its openness to international businesses and strategic location as a gateway to the region make UAE an attractive market for United States exporters. Consumers prefer to buy through organized channels as it is a general perception that they offer quality goods, products, and services in affordable and premium price ranges.


Based on distribution channel, the market is divided into supermarkets/hypermarkets, online, baqala stores, departmental stores, exclusive stores, and specialty retailers. Supermarkets/hypermarkets were valued at USD15.96 billion in 2021 and are expected to grow at a steady CAGR of 5.18% in the forecast period, 2023-2027, to reach USD21.11 billion by 2027. Supermarkets/hypermarkets are popular as they offer multiple products such as grocery items, stationery, cosmetics, apparel, watches, electronic products and many more products that are required to maintain the consumer lifestyle. The growing disposable income of middle-class families and the flexibility of buying different items under a single roof attracts customers to buy products from supermarkets/hypermarkets. They can easily compare the products based on brand, specifications, price range, size, color, and other features and make informed decisions. Also, the supermarkets/hypermarkets offer lucrative discounts on special occasions to boost footfall and increase their sales.


Major market players operating in the UAE retail market are:

  • Majid Al Futtaim Group
  • Lulu Group International
  • Union Cooperative Society
  • Spinneys Dubai LLC
  • Landmark Group
  • Azadea Group
  • Amazon (Souq)
  • M.H. Alshaya Company (Al Shaya Group)
  • Fathima Group of Companies
  • Al Maya Group LLC


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“The online distribution channel is the fastest growing market and is expected to grow at a steady CAGR of 9.85% over the forecast period, 2023-2027. Consumers have started to prefer to buy via online sales channels as they allow them to explore different stores without physically making the rounds of stores. Leading retail chains such as Carrefour and Lulu have adopted online channels to increase their product offerings and reach remote locations. Social commerce is the current trend, and the retail industry market players hire influencers and celebrities to advertise their products and capture the highest market share. Therefore, the growing focus on online channels and the booming social commerce industry is expected to propel the UAE retail market till 2027”, said Mr. Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm.

“UAE Retail Market By Type (Food Retail v/s Non-Food Retail), By Type of Market (Organized v/s Unorganized), By Distribution Channel (Supermarkets/Hypermarkets, Online, Baqala Stores, Departmental Stores, Exclusive Stores and Specialty Retailers), By Region, Competition, Forecast & Opportunities, 2027”, has evaluated the future growth potential of UAE retail market and provides statistics & information on market size, structure, and future market growth. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in UAE retail market.

 

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  • Marco Brown
    published this page in Submit Content 2022-11-14 19:48:22 -0800

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