Dubai’s retail sector has been growing between 3.5 per cent and 7.5 per cent since 2010. Consumer spending is expected to support retailing activity to expand by 7.7 per cent in 2016, with growth thereafter at a CAGR of 8.1 per cent until 2020.

Store-based retailing is behind 98 per cent of the total value of retailing in 2015, and its pace of growth has by a large margin outpaced the growth of the non-store retailing category since 2010.

Growing economic prosperity, a steady population growth, and rising incomes have all helped to increase consumers’ overall expenditure in Dubai. In addition, the boom in tourist numbers has kept the wholesale and retail sector vibrant.

Dubai’s trendy, youthful population is a major factor for this growth. This segment of the population keeps up to date with the latest trends in many retail product categories such as apparel, footwear, health and beauty products as well as luxury products. This has encouraged retailers to introduce new merchandise and expand their physical presence in recent years, leading to higher value growth.

Apparel and footwear retail outlets are set to lead growth in the medium run at a forecast CAGR of 6.6 per cent, which will keep it as the largest sub-segment under the non-grocery retailing category.