The UAE’s retail sector is expected to reach Dh200 billion by 2017, growing by five percent on average each year, according to an analysis by the Dubai Chamber of Commerce and Industry.
Consumer spending is also expected to continue rising in the medium term, with growth rates projected to stabilise at about four per cent on average per year, leading to a total spending of more than Dh750 billion by 2017 across many categories.
According to the Dubai Chamber, the data they have gathered from several sources, including Euromonitor and ATKearney, indicate that consumer confidence in the UAE has not been negatively impacted by expectations of decelerating economic growth in the region. Retail sales and consumer spending data alone show that the retail sector is growing faster than the UAE economy as a whole.
Today’s large retail chain shall:
- have flexible structure and ensure decrease of strategic asset alienation risk;
- combine advantages of vertical and horizontal integration consolidating revenue mass at the business founders;
- act as attractive investment object for external investors and ensure effective investment of the trade capital;
- have potential of territorial trade activity extension and tools for integration into regional infrastructure;
- introduce innovative information technologies into trade process.