The retail sector in Dubai is very Vast as Dubai is a shoppers’ paradise, with the world’s biggest mall, two major shopping festivals, traditional souks, and the world’s highest per capita food and beverage sector. There is no better country in the area to go on some shopping therapy than Dubai.
In this article, you will learn everything about growing of the retail sector in Dubai. Over the last several years, the retail business in Dubai has evolved as it has continued to position itself as the dominating player in the world retail arena, proving that it can support the development and stimulate international brands. Let’s observe:
1. Retail industry in Dubai
According to a new analysis conducted by the Dubai Chamber of Commerce and Industry, the retail industry in Dubai will continue to thrive over the next five years, with a compound annual growth rate of 5.2 percent.
In addition, the thriving will occur supported by strong foreign visitor spending, robust demand driven by higher frequencies of mega-sales and shopping festivities, and a growing e-commerce business.
Dubai has some of the world’s biggest retail marketplaces, malls, grocery stores, and shopping festivals. There is no lack of business possibilities in Dubai’s retail sector; the city is the ideal site in the Middle East region to begin any retail business venture, making it a shopper’s paradise internationally.
After London, Dubai is the only place for many big multinational businesses with the most essential commercial potential. The city has no lack of worldwide brands in its retail industry, including both high-end European names for mainstream and local shopping locations.
There are approximately 100 malls in the region, each with distinct and appealing architecture and amenities. Because the shopping sector in Dubai contributes considerably to the UAE’s economy, the malls serve many customers every day; business investors perform remarkably well in the country’s retail market.
The two major events affecting the retail business in Dubai are organized to attract the greatest number of tourists from across the globe:
- The Dubai Shopping Festival.
- The Dubai Summer Surprises.
What is the Dubai Shopping Festival?
Dubai Shopping Festival is an annual month-long event. And the Dubai Festivals & Retail Establishment, part of Dubai’s tourist department is who organizes this festival.
During the event, stores provide discounts on their products, daily vehicle raffles, and prize draws are performed to win prizes such as gold and automobiles, and fireworks show. There are also a variety of family activities and live entertainment available around Dubai.
The Festival originally started on February 16, 1996, and it took 45 days to complete before it could be launched. Sheikh Mohammad Bin Rashid Al Maktoum conceptualized the event. It was in its 24th year of operation in 2019.
The 24th edition of the Dubai Shopping Festival stretches for more than five weeks in 2018-2019, marking the festival’s longest run to date. The Dubai Shopping Festival’s slogan is “One World, One Family, and One Festival.”
The festival was initially designed to encourage growth in the retail trade business in Dubai, United Arab Emirates, but it was subsequently pushed as a tourist destination.
In 2009, over three million people attended the Dubai Shopping Festival, and they generated over two billion dollars. The Festival sector has been a significant contribution to Dubai’s economy, helping to increase tourism and the retail market.
Over 700 brand names and 3000 retailers participated in the most recent festival, which took place from 2018 to 2019.
What are the Dubai Summer Surprises?
Dubai Summer Surprise is an annual event that began in 1998 to make Dubai an appealing family vacation destination.
DSS lasts for ten weeks and often begins in June and continues through July, August, and September. During DSS, these occurrences are labeled with titles and themes related to the activity. The many surprises are prepared by various governments in partnership with retail malls, hotels, and other businesses.
DSS has a mascot called Modhesh, derived from the Arabic words Amazing, Incredible, and Unexpected. During the DSS, the neighborhood Modhesh Funcity, situated near Dubai International Airport, is quite popular.
Initially designed to generate more retail commerce in Dubai, United Arab Emirates, but was subsequently pushed as a tourist destination.
The first Dubai Shopping Festival, held in 1996, attracted over 1.5 million people who spent more than $500 million over the one-month event. These figures have subsequently risen, with over three million people visiting the Dubai Shopping Festival in 2009 and over two billion dollars generated.
The Festival sector has contributed to Dubai’s economy, stimulating tourism and the retail market.
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2. What motivates the growth of the retail industry in Dubai?
Because shopping in Dubai is crucial to the economy, the Emirates feeds those willing to pay a premium quite well. Two key events in the retail industry attract travelers from all around the globe.
The Dubai Shopping Festival is a monster sale from January through February with insane innovations where raffle prizes might include kilos of gold or luxury automobiles, street festivals, pyrotechnics, and cultural activities in the backdrop.
Approximately 30% of the year’s retail sales are made during this DSF. The event is so well-known that Dubai launched its summer equivalent, Dubai Summer Surprises, from June to August 18 years ago.
Another important festival in Dubai is GITEX Shopper, a bi-annual technology gathering and gadget sales for the hundreds of thousands that congregate at the World Trade Centre in Dubai, ready to score the deals.
Nonetheless, the retail industry is not the only one that dominates malls. Over the last year, the city has shifted from the grandeur of malls to more unique, boutique-style establishments centered on local talent and companies.
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3. Retail Industry Expands in Dubai
The number of retail businesses in Dubai is vast, as is the number of item trade organizations. There are a few conditions that a business owner must follow while establishing a corporation in Dubai & expand businesses across the Middle East. They are as follows:
Determine the Type of Company.
Firstly, the range of things you deal with in your business determines the kind of license that you need. Also, there are almost 2000 activities mentioned in the Department of Economic Development. And you must select what is best for your organization.
Seek assistance from a local sponsor.
Secondly, if you want to open a retail store in Dubai, you must have a local sponsor who owns 51% of the firm. This legislation does not apply if you are starting a firm in a free zone.
Obtain a Commercial License
Now that you’ve decided on a company venture, it’s time to apply for a Commercial License. Before making this step, you must first register your company with the Registrar of Companies. You must provide the following documents for licensure to the DED Dubai and the UAE Federal Ministry of Economy.
- An application in English and Arabic, and includes a firm name.
- Rental agreement with your registered office address (original).
- Permission issued by the Municipality of Dubai’s Building Department to allow the use of storage space as a business address for the retail establishment.
- Proof of license payment and fees
With these papers, you may upload and acquire your license. If you get a claim, you will be able to launch your company formally. If you wish to open a store for sale, you must get several licenses from Dubai Municipality and other relevant authorities.
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4. Key Snapshots
Following the establishment of your retail firm in Dubai, you must do some tasks. These are:
- In summary, excellent inventory management is feasible without having surplus items on hand or having fewer products.
- Attract consumers by offering large discounts, bargains, and gifts, among other things.
- Hiring pleasant employees whose primary priority should go above and beyond client satisfaction.
- Create a clean environment for your customers so that they will return.
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5. Future Retail Aspirations
The Dubai Expo 2020 event not only influences the nation’s companies and sectors for six months. But it also ushers in a new era of societal progress for the country over the following decade.
Companies in Dubai are also anticipated to profit from the Expo over the next 10-15 years. This event would go above and beyond a national presentation of the most innovative technologies and future inventions.
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6. Future of Retail Sector in Dubai
Dubai has proven to be one of the most appealing markets in the area for all retailers, as well as giving tremendous development potential in all sectors. Expats from all around the globe are flocking to Dubai to further their professions.
Retail stores have always shown to be effective and rising in most locations of Dubai with a significant population since such enterprises supply vital commodities.
Dubai’s population is quickly growing as a result of the massive and ongoing influx of immigrants. Assuming that the majority of these immigrants are enjoying a large and considerable salary and earning a lump amount. Retail is regarded as one of the most popular and highest-performing industries in Dubai.
As a result, Dubai has a plethora of retail industries. However, as the world’s population grows, so does the need. Furthermore, the approaching World Expo 2020 assists every business, including the retail sector.
Because Dubai is renowned as the Middle East’s shopping capital, it is expected that the retail sector will continue to grow. And also become the number one engine of the Dubai economy.
It is not difficult to imagine how the retail industry appear as Expo 2020 approaches. According to the Dubai Chamber of Commerce, the retail sector is expected to increase at an annual rate of 8%.
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7. How can Connect Middle East help you to grow in the retail sector in UAE?
Starting a business is usually a wise move for any entrepreneur. The desert terrain has a lot to offer new enterprises in its region and constantly welcomes new firms with open arms.
Our objective is to help you through each stage of the process to get the results you want. Improve your life quality by relocating to one of the world’s best destinations and making use of your retirement years and funds.
On the other hand, as well-experienced business setup consultants in Dubai, we can advise and support company creation for offshore, free zone, and mainland investors. We make every effort to provide complete company registration and advice services to individuals interested in the UAE market.
You can rely on our company registration professionals to set up a business regardless of the kind of business you choose. So, contact us right now to get your company on the right track.
Would you like to contact Connect Middle East to obtain more information about a maid visa in Dubai? If you have any questions, call us on + (971) 4331-6688. You can email us at firstname.lastname@example.org, and you will talk to one of our representatives who will answer your questions. Contact us for enquiry regarding Company Formation in Dubai | PRO Services in Dubai | Business Setup in Dubai