UAE Retail Market Size, Share, Growth & Forecast 2025

www.techsciresearch.com

Published: October 2020

Table of Contents

S. No. Contents

1. Product Overview

2. Research Methodology

3. Impact of COVID-19 on UAE Retail Market

4. Executive Summary

5. Voice of Customer

5.1. _{Sources of Information (N = 100)}

5.2. _{Preferred Mode of Distribution Channel (N = 100)} 5.3. _{Factors Influencing Purchase Decision (N = 100)}

5.4. _{Average Monthly Expenditure on Food Products (N=100)}

6. UAE Retail Market Outlook

6.1. Market Size & Forecast

6.1.1. _{By Value}

6.2. Market Share & Forecast

6.2.1. _{By Type (Food Retail v/s Non-Food)}

6.2.2. _{By Type of Market (Organized v/s Unorganized)}

6.2.3. By Distribution Channel (Exclusive Stores, Supermarket/Hypermarket, Specialty Retailers, Department Stores, General Merchandise Stores, Online, Others)

Table of Contents

S. No. Contents

6.2.4. _{By Region (Sharjah, Dubai, Abu Dhabi, Rest of UAE)}

6.2.5. By Company (2019)

6.3. _{Market Attractiveness Map, By Distribution Channel}

7. Dubai Retail Market Outlook

7.1. _{Market Size & Forecast}

7.1.1. By Value

7.2. _{Market Share & Forecast}

7.2.1. By Type

7.2.2. By Type of Market

7.2.3. By Distribution Channel 8. Abu Dhabi Retail Market Outlook

8.1. _{Market Size & Forecast}

8.1.1. By Value

8.2. _{Market Share & Forecast}

8.2.1. By Type

8.2.2. By Type of Market

8.2.3. By Distribution Channel 9. Sharjah Retail Market Outlook

9.1. _{Market Size & Forecast}

9.1.1. By Value

9.2. _{Market Share & Forecast}

9.2.1. By Type

9.2.2. By Type of Market

Table of Contents

S. No. Contents

10. Market Dynamics

10.1. Drivers/Opportunities

10.2. Challenges/Restraints

11. Market Trends & Developments 12. Policy & Regulatory Landscape 13. Import & Export Analysis

14. Pricing Analysis

15. UAE Economic Profile

16. Competitive Landscape

16.1. Majid Al Futtaim Group

16.2. Lulu Group International

16.3. Spinneys Dubai LLC

16.4. Landmark Group

16.5. The Savola Group

16.6. Azadea Group

16.7. Amazon (Souq)

16.8. M.H. Alshaya Co. (Al Shaya Group)

16.9. Fathima Group of Companies.

16.10. Al Maya Group LLC

17. Strategic Recommendations

L i s t o f F i g u r e s

Figure No. Title

Figure 1: Sources of Information (N = 100)

Figure 2: Preferred Mode of Distribution Channel (N = 100) Figure 3: Factors Influencing Purchase Decision (N = 100)

Figure 4: Average Monthly Expenditure on Food Products (N=100)

Figure 5: UAE Retail Market Size, By Value (USD Billion), 2015-2025F Figure 6: UAE Population Size (In Million), 2015-2019

Figure 7: UAE Retail Market Share, By Type, By Value, 2015-2025F

Figure 8: UAE Retail Market Share, By Type of Market, By Value, 2015-2025F

Figure 9: UAE Retail Market Share, By Distribution Channel, By Value, 2015-2025F

Figure 10: UAE Retail Market Share, By Region, By Value, 2015-2025F

Figure 11: UAE Retail Market Share, By Company, By Value, 2019

Figure 12: UAE Retail Market, Region Map, By Distribution Channel on the Basis of Market Size (USD Billion) & _{Growth Rate (%)} Figure 13: Dubai Retail Market Size, By Value (USD Billion), 2015-2025F

Figure 14: UAE GDP (In USD Billion), 2015-2019

Figure 15: Dubai Retail Market Share, By Type, By Value, 2015-2025F

Figure 16: Dubai Retail Market Share, By Type of Market, By Value, 2015-2025F Figure 17: Dubai Retail Market Share, By Distribution Channel, By Value, 2015-2025F Figure 18: Abu Dhabi Retail Market Size, By Value (USD Billion), 2015-2025F

Figure 19: UAE GNI Per Capita (In USD Thousand), 2015-2019

Figure 20: Abu Dhabi Retail Market Share, By Type, By Value, 2015-2025F

L i s t o f F i g u r e s

Figure No. Title

Figure 22: Abu Dhabi Retail Market Share, By Distribution Channel, By Value, 2015-2025F Figure 23: Sharjah Retail Market Size, By Value (USD Billion), 2015-2025F

Figure 24: UAE Mobile Cellular Subscriptions (Per 100 People), 2015-2019 Figure 25: Sharjah Retail Market Share, By Type, By Value, 2015-2025F

Figure 26: Sharjah Retail Market Share, By Type of Market, By Value, 2015-2025F Figure 27: Sharjah Retail Market Share, By Distribution Channel, By Value, 2015-2025F Figure 28: UAE Import of Footwear with HS Code: 6402 (In Million Pairs)

Figure 29: UAE Import of Processed Food with HS Code: 2106 (In Million KGs)

Figure 30: UAE Export of Jewelry with HS Code: 711320 (In Thousand KGs)

Figure 31: UAE Export of Processed Food with HS Code: 2106 (In Million Kgs)

List of Tables

Figure No. Title

Table 1: Pricing Analysis of Process Food in Retail, 2020 Table 2: Pricing Analysis of Appliances in Retail, 2020 Table 3: Pricing Analysis of Jewelry in Retail, 2020 Table 4: Pricing Analysis of Apparel in Retail, 2020

Scope of Report

Product of Interest (POI):

Retail Market

Retail is a process of trading consumer-based goods or services in small orders or

individual based selling, through various supply chains. These supply chains can be online

(website based) or offline (via supermarket, hypermarket, shops, exclusive stores, etc.).

Based on type, retail market can be segregated into food and non-food retail. This report

covers retail market in both organised and unorganised sectors.

Market Segmentation

TYPE

• Food Retail

• Non-Food retail

REGION

• Dubai

• Abu Dhabi

• Sharjah

• Rest of UAE

• Organised market

• Unorganised Market TYPE OF MARKET

• Exclusive Stores

• Supermarket/Hypermarket

• Specialty Retailers

• Department Stores

• General Merchandise Stores

• Online

• Others

Research Methodology

✓ Identifying Key Opinion Leaders

✓ Questionnaire Design

✓ In-depth Interviews Data Collection Developing List of Respondents Formulating Questionnaire Market

Profiling _ValidationData

Data Analysis

In-depth secondary research was conducted to

determine top players in the UAE retail market, overall market size and segmental market size.

In order to conduct

industry experts’

interviews, TechSci formulated a detailed

discussion guide.

List of industry players and industry

specialists was developed.

TechSci conducted interviews with industry experts and

industry players for data collection and

verification.

Data obtained as a result of primary

and secondary research was validated through

rigorous triangulation.

The data was scrutinized using MS-Excel, statistical

tools and internal proprietary database to

obtain qualitative and quantitative insights about

the UAE retail market.

Data Collection

Data Filter

& Analysis IntelligenceResearch &

Actionable

Insights Business_Solution

Primary Research Desk Research Company Analysis

✓ Recent Developments

✓ Market Changing Aspects/Dynamics

✓ Government Policies

✓ Conclusion

✓ Market Participants

✓ Key Strengths

✓ LinkedIn ✓ TechSci Internal

Database

✓ Factiva ✓ Hoovers

Paid Sources ✓ Company Websites

✓ Company Annual Reports

✓ White Paper Study ✓ Financial Reports ✓ Investor

Presentations ✓ Regulatory Body ✓ Associations, etc.

Secondary Research Primary Research

Research Methodology

Our dedicated team of industry experts has monitored and analyzed various aspects of UAE Retail market. The team has analyzed the outlook of various segments of the market, while considering the major influencing factors such as rapid urbanisation in the country and increasing online sales. The study includes market forecasting, which would enable our clients to take better decisions while planning their strategy to achieve sustainability in the UAE Retail market.

Methodology Followed for Calculation of Market Size:

• Market Size by Value :Market size, in terms of value, for the year 2019 was calculated based on information collected through exhaustive secondary research and primary surveys, with various key opinion leaders/stakeholders, such as Retail companies, channel partners, end users, industry experts, and other industry participants.

• The team interviewed more than 10 Retail companies, 100 end users, and 15–20 industry experts and other value chain stakeholders in the UAE Retail market to obtain the overall market size from 2015 to 2019, which was validated by the Delphi technique. Taking standard deviation into consideration, the market size was averaged out, to arrive at the market size data during 2015-2019.

Research Methodology

• Respondents were asked about the current and future market growth rates, market shares by type, by type of market, by distribution channel, by region and by company. Removing the outlier responses, the geometric mean of growth estimates and supplier wise revenue shares generated across various segments were considered, to arrive at the final revenue shares. Revenue shares generated across various segments were further triangulated from other stakeholders.

Methodology Followed for Calculation of Market Shares:

Market shares by type, by type of market, by distribution channel, by region and by company were calculated based on the responses received through primary surveys with industry experts, in which the respondents were asked about the market shares or revenue generated from various segments of the retail market. The final shares were calculated by taking the geometric mean of the responses gathered from key opinion leaders after eliminating the outliers.

Methodology Followed for Forecasting:

• TechSci Research performed periodical checks on data collected through the surveys with logic checks and analyzed the survey results in SPSS/Tableau Software.

• Data triangulation techniques were applied to fill the gaps and to present a more meaningful picture of the market. To forecast UAE Retail market, TechSci Research used various forecast techniques such as:

✓ Moving Average ✓ Time Series Analysis

✓ Regression Analysis

Research Methodology

TechSci Research used its own forecast tool, which is based on the growth of various allied industries in respective regions. TechSci Research also used the impact analysis during short, medium and long term period to estimate the demand and to reach accurate market numbers.

Partial List of Companies Interviewed Key Secondary Sources

▪ Majid Al Futtaim Group

▪ Landmark Group

▪ The Savola Group

▪ Azadea Group

▪ Amazon (Souq)

▪ M.H. Alshaya Co. (Al Shaya Group)

▪ Fathima Group of Companies

▪ Lulu Group International ▪ Spinneys Dubai LLC ▪ Al Maya Group LLC

▪ World Bank

▪ TechSci Research Proprietary Database & Knowledge Repository

▪ Company Annual Reports

▪ Industry Magazines

▪ Industry Reports

▪ Food and Drug Administration (FDA)

▪ News Dailies

Industry Brief

According to TechSci Research report,

“UAE Retail Market By Type, By Type of Market, By Distribution Channel, By Region, Competition,

Forecast & Opportunities, 2025”, the UAE retail market is projected to grow from $ 55 billion in 2019 to $ 75 billion by 2025. Major factors behind

the growth of retail market in the UAE include rising per capita income, growing tourism industry, increasing expatriate population and rising

number of upcoming development projects in the region such as Deira Mall (Dubai), Al Maiyah Central (Abu Dhabi), Cityland Village (Dubai),

Tilal Mall (Sharjah), Reem Mall (Abu Dhabi), among others. In addition, the Mega event

‘Dubai World Expo 2020’ will boost the construction,

infrastructure, and tourism industry in the UAE. Furthermore, emerging technologies such as AI, IoT, Big Data Analytics, among others, are

reshaping the retail industry in the country. Also, the retail e-commerce market continues to grow due to the growing penetration of smartphones

and the usage of social media platforms. In addition, better access to secure online payment and gradual improvement of logistics capabilities

are positively influencing UAE retail market

The UAE retail market is segmented based on type, type of market, distribution channel, and region. Based on distribution channel, the market is

fragmented into, supermarket/hypermarket, exclusive stores, specialty retailers, department stores, general merchandise stores, and online

segments. The supermarket/hypermarket segment grabbed the largest share in the UAE retail market as the market is highly modernized with

leading hypermarket and supermarket retailers like Carrefour, Spinneys, Geant, EMKE, and Al Madina present in all the major locations in the

UAE. Apart from having a high concentration of hypermarkets/supermarkets, the UAE also has a well-integrated logistics network.

Based on Type, the market is split into Non-Food Retail and Food Retail. The UAE Food Retail segment dominates the market on account of

rising urbanization, increasing income levels and strong retail-supported infrastructure that offers an environment for a thriving modernized food

retail market. Retail market environment has been primarily designed along the standards prevailing in Western countries. Moreover, the

hypermarket/supermarket culture has been embedded in the minds of the Emirati consumers. Such factors contribute to a large proportion of

food retailing from integrated hypermarkets/supermarkets, which in turn allows them to establish successful partnerships with logistics firms.

Based on type of market, the

country’s retail market is categorized into Organized and Unorganized market. The UAE retail market is dominated

by the organized segment. The major factor behind this is that both international and domestic players are actively emphasizing on increasing

floor space by opening new stores due to rising demand for quality products across the country.

In terms of regional segmentation, the market is further split into Dubai, Abu Dhabi, Sharjah, and Rest of UAE. The Gulf has world-class malls

that act as a magnet for domestic and international consumers. Dubai is leading all other Gulf locations when it comes to quality retail space. The

Dubai Mall, built over a million square meters, is the largest shopping and entertainment destination in the world. Furthermore, Dubai is one of

the top 10 cities in the world in terms of new retail space under construction. The most prominent among the new retail projects is Dubai

Holding’s Mall of World, which, when completed, will have the capacity to host 180 million visitors, annually.

The UAE Retail market is rapidly growing and the key players operating in market include Lulu Group International, Majid Al Futtaim, Landmark

Group, The Savola Group., Azadea, Amazon.ae (Souq), Fathima Group of Companies, Carrefour, Spinneys Dubai LLC, Al Maya Group LLC,

among others.

“Increasing advancements in technology including augmented reality, virtual reality, artificial intelligence, and IoT to improve store

operations, ease accurate inventory management, and enhance consumer shopping experience are among the leading trends emerging in the

UAE retail market.”, said Mr. Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm.

Sample Data - Snapshot

UAE Retail Market Size, By Value (USD Billion), 2015-2025F

2015 2016 2017 2018 2019 2020E 2021F 2022F 2023F 2024F 2025F

CAGR BY VALUE (2015-2019): xx% CAGR BY VALUE (2020E-2025F): xx%

Dubai Retail Market Share, By Type, By Value, 2015-2025F

2015 2016 2017 2018 2019 2020E 2021F 2022F 2023F 2024F 2025F

Non-Food Retail 40.00% 40.00% 40.00% 40.00% 40.00% 40.00% 40.00% 40.00% 40.00% 40.00% 40.00% Food Retail 60.00% 60.00% 60.00% 60.00% 60.00% 60.00% 60.00% 60.00% 60.00% 60.00% 60.00%

Dubai Retail Market Share, By Distribution Channel, By Value, 2015-2025F

2015 2016 2017 2018 2019 2020E 2021F 2022F 2023F 2024F 2025F

Supermarkets/Hypermarkets 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00%

Exclusive Stores 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%

Speciality Retailers 15.00% 15.00% 15.00% 15.00% 15.00% 15.00% 15.00% 15.00% 15.00% 15.00% 15.00%

Department Stores 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00%

General Merchandise Store 23.00% 23.00% 23.00% 23.00% 23.00% 23.00% 23.00% 23.00% 23.00% 23.00% 23.00%

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Report Name: UAE RETAIL MARKET

COMPETITION, FORECAST AND OPPORTUNITIES

2015

–

2025

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