Retailing in The United Arab Emirates

RETAILING IN THE UNITED ARAB
EMIRATES
Euromonitor International
April 2014
RETAILING IN THE UNITED ARAB EMIRATES
LIST OF CONTENTS AND TABLES

Executive Summary ..................................................................................................................... 1
Economic Recovery Brings Sales Growth Back on Track at the End of the Review Period ..... 1
Rise in Tourism As Consumer Confidence Picks Up ................................................................ 1
Non-grocery Retailing Grasps Market Trend Opportunities While Grocery Retailing Poses
Strong Competition ................................................................................................................... 1
Majid Al Futtaim Hypermarkets Llc Extends Further Lead in the Retailing Market ................... 2
A Healthy Performance Is Expected Over the Forecast Period ................................................ 2
Key Trends and Developments .................................................................................................... 2
Consumer Confidence Picks Up Towards the End of the Review Period ................................. 2
Internet Retailing Another Booming Channel ............................................................................ 5
More Supermarkets and Convenience Stores Emerge As Demand for Convenience Rises .... 7
Growing Shopping Centre Developments Lead To More Retail Sales Area ............................. 9
Market Indicators ........................................................................................................................ 11
Table 1
Employment in Retailing 2008-2013........................................................... 11
Market Data ................................................................................................................................ 12

Table 2
Table 3
Table 4
Table 5
Table 6
Table 7
Table 8
Table 9
Table 10
Table 11
Table 12
Table 13
Table 14
Table 15
Table 16
Table 17
Table 18
Table 19
Table 20
Table 21
Table 22
Table 23
Table 24
Table 25
Table 26
Table 27
Table 28
Sales in Retailing by Channel: Value 2008-2013 ....................................... 12

Sales in Retailing by Channel: % Value Growth 2008-2013....................... 12
Sales in Store-Based Retailing by Channel: Value 2008-2013 .................. 12
Store-Based Retailing Outlets by Channel: Units 2008-2013 ..................... 12
Sales in Store-Based Retailing by Channel: % Value Growth 20082013 ........................................................................................................... 13
Store-Based Retailing Outlets by Channel: % Unit Growth 2008-2013 ...... 13
Sales in Non-store Retailing by Channel: Value 2008-2013....................... 13
Sales in Non-store Retailing by Channel: % Value Growth 2008-2013 ...... 13
Sales in Retailing by Grocery vs Non-Grocery: 2008-2013 ........................ 14
Non-Grocery Retailers: Value Sales, Outlets and Selling Space 20082013 ........................................................................................................... 14
Sales in Non-Grocery Retailers by Channel: Value 2008-2013 .................. 14
Non-Grocery Retailers Outlets by Channel: Units 2008-2013 .................... 14
Sales in Non-Grocery Retailers by Channel: % Value Growth 20082013 ........................................................................................................... 15
Non-Grocery Retailers Outlets by Channel: % Unit Growth 2008-2013 ..... 15
Retailing Company Shares: % Value 2009-2013 ....................................... 16
Retailing Brand Shares: % Value 2010-2013 ............................................. 16
Store-Based Retailing Company Shares: % Value 2009-2013 .................. 17
Store-Based Retailing Brand Shares: % Value 2010-2013 ........................ 17
Store-Based Retailing Brand Shares: Outlets 2010-2013 .......................... 18
Non-store Retailing Company Shares: % Value 2009-2013....................... 19
Non-store Retailing Brand Shares: % Value 2010-2013 ............................ 19
Non-Grocery Retailers Company Shares: % Value 2009-2013.................. 20
Non-Grocery Retailers Brand Shares: % Value 2010-2013 ....................... 20
Non-Grocery Retailers Brand Shares: Outlets 2010-2013 ......................... 21
Non-Grocery Retailers Brand Shares: Selling Space 2010-2013 ............... 21
Forecast Sales in Retailing by Channel: Value 2013-2018 ........................ 22
Forecast Sales in Retailing by Channel: % Value Growth 2013-2018 ........ 22
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Table 29
Table 30
Table 31
Table 32
Table 33
Table 34
Table 35
Table 36
Table 37
Table 38
Table 39
Forecast Sales in Store-Based Retailing by Channel: Value 20132018 ........................................................................................................... 22

Forecast Store-Based Retailing Outlets by Channel: Units 2013-2018 ...... 23
Forecast Sales in Store-Based Retailing by Channel: % Value Growth
2013-2018 .................................................................................................. 23
Forecast Store-Based Retailing Outlets by Channel: % Unit Growth
2013-2018 .................................................................................................. 23
Forecast Sales in Non-store Retailing by Channel: Value 2013-2018 ........ 23
Forecast Sales in Non-store Retailing by Channel: % Value Growth
2013-2018 .................................................................................................. 24
Non-Grocery Retailers Forecasts: Value Sales, Outlets and Selling
Space 2013-2018 ....................................................................................... 24
Forecast Sales in Non-Grocery Retailers by Channel: Value 20132018 ........................................................................................................... 24
Forecast Non-Grocery Retailers Outlets by Channel: Units 2013-2018 ..... 25
Forecast Sales in Non-Grocery Retailers by Channel: % Value
Growth 2013-2018 ..................................................................................... 25
Forecast Non-Grocery Retailers Outlets by Channel: % Unit Growth
2013-2018 .................................................................................................. 26
Appendix .................................................................................................................................... 26
Operating Environment ........................................................................................................... 26
Summary 1
Table 40
Standard Opening Hours by Channel Type 2013....................................... 27

Number of Shopping Centres 2010-2013 ................................................... 28
Cash and Carry....................................................................................................................... 29

Definitions................................................................................................................................... 30
Sources ...................................................................................................................................... 31
Summary 2
Research Sources ...................................................................................... 31
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II
RETAILING IN THE UNITED ARAB

EMIRATES
EXECUTIVE SUMMARY
Economic Recovery Brings Sales Growth Back on Track at the End of
the Review Period
Following the economic downturn, the retailing performance recuperated towards the end of
the review period from 2011 onwards. This was mainly linked to economic instability in Europe
and other Middle Eastern countries, leading to more expatriates entering the United Arab
Emirates, which resulted in real GDP growing by 3% in 2013, and had been mainly picking up
since 2011. Consumers were more cautious of spending during the economic downturn, which
picked up towards the end of the review period as disposable incomes rose, making consumers
more confident to spend.
Rise in Tourism As Consumer Confidence Picks Up

In 2013, retailing sales did not only benefit from domestic consumption but through tourism.
This was reflected as tourism flows inbound grew by 9% in 2013, as economic instability and
political unrest in other Middle Eastern countries and Europe encouraged more expatriates to
visit the United Arab Emirates towards the end of the review period. The touristic consumer
base grew as more Russian as well as Chinese tourists with high disposable incomes were
encouraged to come into the United Arab Emirates. The tourism industry further boomed from
government efforts through maintaining a wide number of tourist attractions and strong
infrastructure in the country, encouraging more tourists to perceive the United Arab Emirates as
a hub for tourism.
Non-grocery Retailing Grasps Market Trend Opportunities While

Grocery Retailing Poses Strong Competition
Non-grocery retailing saw a significantly better performance than grocery retailing in 2013 with
a 57% current value share. Grocery retailing had a 43% current value share in 2013. Nongrocery retailing mainly benefits from domestic consumer confidence, as expatriates are
encouraged to spend more, as well as from a high rise in tourists entering the country who
mainly consume beauty and personal care products, apparel and electronics and appliances.
Other healthcare specialist retailers as well as chemists/pharmacies benefited from consumers
becoming more aware of healthcare products, such as dietary supplements and weight loss
products, as they grew concerned for their health with the growth in obesity and diabetes in the
country.
Grocery retailing, on the other hand, was constrained by governmental price controls
protecting consumers from inflation of imported food staples, which limited its retail value sales
growth. Also, the number of independent small grocers declined in 2013 by 4% as they could
not abide by governmental regulations, forcing them to close down. They also could not survive
with the growing competition from modern grocery retailers such as supermarkets.
Hypermarkets also posed competition for non-grocery retailing with their wide offering of
affordably priced non-grocery products, which mainly grew with the increasing number of Asian
workers towards the end of the review period.
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Majid Al Futtaim Hypermarkets Llc Extends Further Lead in the Retailing

Market
During the review period, many grocery retailers struggled due to the price controls set by the
government on certain food staples to protect consumers from inflation. Leading players in retail
were mainly represented by local franchises operating international brands and domestic
grocery retailers. Majid Al Futtaim Hypermarkets LLC led the retailing industry in 2013 with its
well-known brands Carrefour benefiting mainly from their strong international reputations as well
as wide distribution presence in the country. Domestic companies such as Union Co-operative
Society and Emke Group with its Lulu Hypermarket benefited from offering affordable prices and
customised product ranges suitable to meeting local demand.
A Healthy Performance Is Expected Over the Forecast Period

Retailing will continue to benefit from the positive economic outlook during the forecast period.
Consumer confidence will be boosted as a result of the economic stability, leading to more
spending, higher employment and an increase in the number of expatriates and tourists. Growth
is also expected to be supported by increased foreign direct investment from Russian and
Chinese companies trying to make money through foreign investments, as well as further realestate project investments and growth in the number of upcoming shopping centres in Abu
Dhabi and Dubai, which are due to be completed over the forecast period, increasing the
number of retail outlets. Also, non-grocery retailing is expected to see higher growth than
grocery retailing as the affluent population increases, and tourists contribute to a higher
percentage of consumption during the forecast period.
KEY TRENDS AND DEVELOPMENTS

Consumer Confidence Picks Up Towards the End of the Review Period
At the beginning of the review period, the United Arab Emirates was affected by the economic
downturn, which began in 2009 with annual disposable income per capita declining by 55% from
2008 to 2009 in real terms, while expenditure on retailing per capita fell by 21% in 2009. The
countrys retailing market contributes approximately one third of the countrys GDP, and this was
hit hard in the financial crisis as real GDP declined by 5% during 2009, and picked up slightly
with 2% real GDP growth in 2010, and continued to pick up by 3% in 2013 at the end of the
review period.
The economic climate at that time undermined both domestic and tourist expenditure as
visitor numbers fell and as consumers had the urge to save rather than spend. Consumers also
became more price-sensitive and resorted to more affordable forms of shopping. They spent
more time at home rather than in shopping centres, and homeshopping and informal retailing
grew during this period as consumers were seeking price promotions and other forms of saving
money. Retail shops pulled back on their expansion plans and were also working longer hours,
as the number of 24-hour outlets grew during this period to compensate for lost sales.
From 2010 onwards the economic situation picked up in the country, mainly driven by more
foreign direct investment from Russian and Chinese companies, as well as oil prices rising,
employment picking up thereby increasing consumer expenditure and disposable incomes. Real
GDP picked up from 2% real GDP growth in 2010 to 3% in 2013. This was also driven by
population growth and the increase in the number of tourist arrivals, which was further
supported by the government to encourage more footfall in the country. Domestic consumers
began to feel more confident to spend on luxury retail items as more outlets opened in 2010 by
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Al Tayer Group such as Gucci and Prada stores. Expatriates who left the country during the
economic crisis returned, which also added to growth in 2012 and 2013.
Furthermore, the economic performance uplift within retailing and consumer confidence came
about through further population growth, while in 2013 almost 89% of the population was made
up of foreign citizens in comparison with 83% in 2006. Since then the population has grown
rapidly by 105% from 4.1 million to 8.4 million in 2013.
Overall, retailing benefited significantly at the end of the review period due to strong
population growth as more expatriates returned to the country; political instability the rest of the
Middle East helped in increasing their number. This development came alongside growth in
tourism with retailing up in current value terms by a 4% CAGR over the review period, mainly
contributed by non-grocery retailers with a 5% CAGR in real value terms. Consumers were
more confident to purchase rather than window shop given their higher disposable incomes
towards the end of the review period.
Grocery retailers also improved their performance as they began venturing out into non-food
products during the economic downturn, as consumers were seeking more affordable nongrocery items. Furthermore, towards the end of the review period the number of Asian workers
increased in the country, which increased the number of grocery retailers offering products such
as clothing, footwear, and beauty and personal care products in addition to their grocery product
offerings.
As a result, consumers spent more time in shopping centres in 2013 as non-grocery retail
outlets grew by 3% and grocery retailers outlets grew by 1%, as a result of growing demand and
consumer confidence, via expansion plans that were put on hold during the economic downturn.
Affluent consumers had more income to spend on non-grocery outlets, which saw non-grocery
retailers increase by 6% in value terms in 2013. This was mainly contributed by beauty and
personal care consumption by tourists and domestic consumers.
On the other hand, within grocery retailers, supermarkets, convenience stores and
food/drink/tobacco specialists grew the most in 2013, with 13% growth seen in supermarket
outlets, as consumers demanded more convenient forms of grocery shopping. Furthermore realestate picked up in 2013, which also contributed to the need for more supermarkets within
residential areas as well as commercial towers for home delivery and daily consumption.
Inflation also boosted value sales in 2013. Governmental price controls had been set strongly
during the beginning of the review period on certain food staples to protect consumers from
imported costs. These began to loosen in 2013 as the cost of living rose, and consumers spent
more of their disposable incomes, which is the main reason for growth in expenditure as the
cost of goods sold rose. E-commerce is also going to increase consumer expenditure as
consumers are spending more time shopping online, because they become more confident in
carrying out online transactions once they trust the merchant. As a result, retailing grew by 6%
in 2013.
Outlook
Over the forecast period, consumer confidence is expected to proceed and contribute to a
good economic performance. This will be mainly driven by population growth as a result of
political instability working in the United Arab Emirates favour. There will be increasing
employment opportunities as the economy recovers. More foreign direct investment by Russian
and Chinese companies will be seen, benefiting real estate as well as the retailing industry, due
to higher levels of tourism. The government is also expected to further expand trade finance
services, which will all benefit tourism. Growth in the number of shopping centre developments
and tourist attractions will drive more people into the country as well as increase the leisure
activity in the country. With the higher population number in Abu Dhabi, more shopping centre
developments are likely to proceed there to further develop the shopping experience.
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Furthermore, inflation is likely to push economic value sales more than higher disposable
income growth. This trend will be mainly due to oil prices going up and the cost of living rising,
which will increase consumer expenditure as the costs of products and services increase,
benefiting grocery and non-grocery retail outlets. Real GDP is expected to grow by 4% over the
forecast period, and in return the retailing industry is likely to respond by expanding its number
of outlets, taking on more franchise partnerships for luxury apparel brands as well as increasing
product choice to meet the growing demand as economic security improves.
With the better economic conditions in the United Arab Emirates, retailing grew in 2013 by
6%, showing higher growth than the 4% CAGR of the overall review period. This was mainly
due to the factors that drove sales up towards the end of the review period, including expatriates
returning to the country, an improved job market and a boost in consumer confidence as more
foreign investment took place and more tourists visited the country.
Furthermore, as the improved economy prevails over the forecast period, consumers will
become more confident in spending as constant value sales are set to increase by a 4% CAGR,
higher than the 3% CAGR of the review period. Various non-grocery retailers that were
restrained from increasing their prices will compensate over the forecast period and benefit from
higher consumer expenditure. These include apparel specialist retailers, beauty and personal
care specialist retailers, home and garden specialist retailers, and leisure and personal goods
specialist retailers as well as optical goods stores, which are all set to see 4-5% constant value
CAGRs during the forecast period.
On the other hand, there will be a number of constraints that will limit value sales growth over
the forecast period despite the strong economic performance expected. With grocery retailers
expanding their product ranges within beauty and personal care as well as clothing and
footwear, this will pose competition for non-grocery retailers with the crowded retail environment
expected over the next five years. Price competition will grow as the retail environment grows
and more players come into the market.
Further price promotions will place pressure on prices for grocery retailers, making it difficult
for them to increase prices to stay in line with inflation. However, Asians of lower-income groups
will still benefit grocery channels with non-food products as such goods will still be more
affordable than in non-grocery retailers. Higher-income groups will still consume from nongrocery retailers and seek value for money as more brands and product choices come into the
market.
Internet retailing is expected to grow by a constant value CAGR of 14% over the forecast
period, a higher rate than grocery retailers, mainly due to its small consumer base. However, as
consumer confidence remains and secure payment systems online prevail, with PayPal being
one of the main ones, consumers are likely to seek more convenient forms of shopping by the
click of a button as the retail environment gets crowded over the forecast period. Also, electronic
appliances are expected to be the main contributor for multichannel grocery retailers such as
Carrefour, Gant and Lulu Hypermarket competing with cheaper online prices against nongrocery electronics and appliance specialist retailers.
Despite this, internet retailing is expected to form 3% of constant value sales of retailing in
2018, and grocery retailers is still expected to dominate the market. Furthermore, grocery
retailers will still be popular for food product items as consumers seek freshness; as well as this,
growth in supermarkets will appease the convenience trend with home delivery. Furthermore,
most grocery retail hypermarkets and supermarkets that do not have internet retailing are
expected to introduce online retail portals focused on non-grocery items rather than grocery
items.
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Internet Retailing Another Booming Channel

Internet user penetration was at 73% of the population in 2013 in the United Arab Emirates. It
is majorly used by consumers at work and at home on the weekends to browse different
websites. Internet usage grew rapidly during the economic downturn in 2009, when consumers
were spending less time in shopping centres, and instead browsing the internet for offers and
better deals as they were price-sensitive during this time. A survey mentioned that 67% of users
online make technology-related searches while 48% make travel-related searches on the
Google search engine. Furthermore, e-mail, social networks and online videos are the most
popular online activities with more than 80% of users dealing with these every day, a survey
revealed.
Meanwhile, the number of the countrys citizens who use the internet to perform financial
transactions is still below the world average; however, the number of people shopping online is
growing steadily. Currently, 46% of the countrys users make online purchases every day, and
45% used online banking systems in 2013. The country also has the fastest broadband service
of all Middle Eastern countries according to industry reports. The average internet connection in
the country is 3.92 megabits per second, more than double the rate of most countries in the
region.
Furthermore, during the downturn, the increased usage of internet retailing helped push
companies to engage in online advertising, social media and online platforms such as Facebook
and Twitter to reach consumers, as consumers spent more time online and window shopping to
browse for good offerings. Despite this growth, search advertising in the United Arab Emirates is
still minimal at 20% in comparison with 55-60% in London, as this is still a niche form of
advertising in the country, but is becoming a very important one. In addition, as consumers
became more sophisticated and confident that online orders offer quality products, prompt home
delivery and credit card security, the number of online users grew towards the end of the review
period.
The growing usage of credit cards with benefits promoted by banks increased the number of
electronic transactions by 13% in 2013 as consumers became more comfortable buying online.
There is also a website that was recently launched in the United Arab Emirates in June 2013
called Bkam.com by Jabbar Internet group, one of the regions largest online investors. This site
provides consumers more information on products including prices, reviews and retail locations.
It offers a range of products such as consumer electronics, cosmetics, clothes and accessories
sourced from both online fashion brands, such as Carrefour as well as H&M and Zara, and ecommerce sites, such as Souq.com, namshi (PP) and Jadopado.com. The growing number of
online users drove the launch of this website, which benefits consumers by helping them make
better choices when shopping for products, through promoting these well-established sites and
showing them the best value for money, as well as attracting retailers that are not well known.
The site is also looking to expand and include food and beverage offerings soon.
Another element that continues to support internet retailing is mobile internet retailing.
Smartphones started with consumers wanting to interact socially, and then by the end of the
review period it shifted to the need for consumers to be politically active through Facebook and
tweeting. The United Arab Emirates tops the list for the most Facebook users as a percentage
of the population according to an Arab Social Media report in 2013. Mobile internet retailing is
mainly used by the youth population in the country. In addition, schoolchildren are also heavy
internet and game users as there are limited outdoor social activities due to the hot weather
conditions. Leading telecom providers such as DU and Etisalat have also introduced 4G LTE
mobile broadband devices to improve the internet experience for consumers, taking advantage
of the growing demand for internet usage.
Internet retailing is also growing in popularity as consumers are becoming more tech-savvy
and confident in purchasing online with safe payment methods such as PayPal. PayPals
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popularity has also benefited internet retailing growth. With new entrants expected in the
market, PayPal anticipates signing up 25,000 merchants and capturing 10% of the MENA
regions e-commerce customers in the next two years.
Despite the high popularity of browsing the internet in the United Arab Emirates, internet
retailing only accounted for a 2% value share of overall retailing in 2013. This is mainly because
consumers still like to touch and feel the products they are buying, in addition to the shopping
leisure activity culture being very popular in the United Arab Emirates. Consumers mainly use
the internet to gather information on products, and this has had an impact on retailing as
consumers use this channel to check prices and promotions, and compare products with storebased products.
In response to the growing internet usage, store-based retailers have ventured into increasing
their online presence. A few players such as Carrefour by Majid Al Futtaim Hypermarkets LLC
launched into internet retailing in 2011; Gant by Fu-Com International and Lulu Hypermarket
by Emke Group offered it in 2013. These latest online stores for grocery retailers in the United
Arab Emirates mainly focus on non-grocery items such as consumer electronics and beauty and
personal care. Even if some players did not get involved in the multichannel development, the
majority had Facebook and Twitter accounts by the end of the review period to create dialogue
with consumers.
The leading players in 2013 meanwhile were pure e-commerce players such as Jabbar
Internet Group FZ LLC with its leading site Souq.com (PP) contributing to the companys value
share of 14%, followed by Amazon.com Inc with 9% and Majid Al Futtaim Hypermarkets LLC
with IC4UAE (MC) with 7%, all of which proving highly successful in that competitors entering in
2013 such as Lulu Hypermarket and Gant focused on similar product offerings. Al-Futtaim
Group LLC and Landmark Group also established presence in internet retailing by the end of
the review period. Internet retailing has helped grocery retailers venture out further into nongrocery products in response to the strong competition in the crowded retail environment, as
well as to the growing online demand. Consequently, internet retailing gained further importance
with value sales rising by 20% in 2013.
Outlook
The United Arab Emirates is on its way to becoming one of the most technologically advanced
nations in the world by 2021. The government is committed to continue promoting technology in
the country through in-home entertainment as well as outdoor entertainment. To contribute to
growth of internet retailing, telecom services are expected to continue improving their
broadband services to encourage faster speed transactions, while expatriates continue to spend
more time online through their social networks are expected to become more aware of new
product launches, encouraging further online transactions.
Consumers are becoming more educated about technology as they are enjoying the
popularity of tablet PCs and smartphones. Smartphones are not just becoming a platform for
social networking but also a more convenient means of purchasing and making transactions via
a mobile. By 2016, mobile internet retailing is expected to contribute to 1% of purchase
transactions as more affordable mobile phone handsets are released in the United Arab
Emirates, and as consumers become more aware of the latest product offerings. Consumer
confidence will also continue to prevail as internet retailers continue to build trust with
consumers via prompt home delivery, secure online payment methods as well as wide product
choices with exclusive promotions.
Telecom operators are expected to introduce near-field communication wireless technology to
transfer data through radio frequency identification transponders, through, for example
smartphones for contactless payments. This will be in response to the growing penetration of
mobile internet retailing.
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Over the forecast period, internet retailing is expected to record a better performance with a
constant value CAGR of 14%, in comparison with the constant value CAGR of 10% over the
review period. More consumers coming back to the United Arab Emirates will contribute to this;
also, not only are consumers spending more time online be it on their PC at home or at work,
smartphone or PC tablet, but they are also becoming very tech-savvy in the sense that they are
more accustomed to making online transactions to fit with the more convenient lifestyle that they
seek.
In addition, the widespread use of smartphones is likely to lead to the growth of online
purchases. According to industry sources, 37% use their mobile devices to make online
transactions in the United Arab Emirates. Also, the business use of smartphones will increase
this further over the forecast period. This will be complemented by more consumers being
expected to use credit cards online, as electronic payments are anticipated to grow by 8% in
2018 as people feel more secure in making online transactions. While internet penetration value
sales are low in the region, internet banking and mobile banking are expected to continue to
rise. The government has supported this with the launch of the mobile government initiative in
the United Arab Emirates in May 2013 as an application for greater convenience and ease of
access. This will increase the number of consumer transactions via mobile devices.
As consumers continue to be more fashion-conscious, apparel internet retailing is expected to
contribute the highest growth. Consumers are expected to become more confident of their
clothes and footwear sizes, making it easier for them to shop for these products online. Also,
with the free return policy on most internet sites that have opened in the region, such as
Namshi.com and Markavip.com, consumers will be willing to take a risk on purchasing online, as
they can return if their products do not meet their size, for example.
Furthermore, a growing number of store-based retailers are expected to enter the online
channel. As consumers browse the internet and shop online, store-based retailers are likely to
implement online channels to help boost their products via promotions. Lulu webstore and
Gant were launched in 2013, focusing on non-grocery products such as consumer electronics
and video games, as consumers compare products and prices in this category online the most.
The regions first e-shopping centre, named Tejuri.com, was launched in March 2013 as a
way for retailers to expand beyond their traditional customer base, as well as to promote
retailers that are not known in addition to the well-established ones. There are options to shop
by brand and shop by store, giving store-based retailers, such as Al Jaber Optical and Grand
Optics, a presence online without having their own online portal, making it easier for consumers
to compare against other stores, and convenient as they are all under one online portal.
More Supermarkets and Convenience Stores Emerge As Demand for

Convenience Rises
Consumers in the United Arab Emirates over the review period sought more convenient
channels of shopping, because of the crowded retail environment, busier lifestyles and
population growth towards the end of the review period. After the economic downturn during the
review period, the real-estate industry began to pick up as property prices boomed, and rents
went up towards the end of this period. Through this, more consumers began demanding
supermarkets and forecourt retailers in residential as well as commercial areas.
Consumers have begun to adapt their shopping habits; rather than shopping on a monthly
basis, they shop on a weekly basis more regularly. These led dominant players within grocery
retail channels introduce more supermarkets and convenience stores over the review period.
Convenience retailers became more popular in 2013 as petrol prices rose and various petrol
stations shut down. Carrefour market by Majid Al Futtaim Hypermarkets LLC is a supermarket
with 1,200 square meter launched in 2013 in Abu Dhabi as consumers demanded more
supermarkets
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Gant by Fu-Com International opened its latest supermarket in Community Centre in New
Jumeirah Park neighbourhood in 2013, and Choithram supermarket opened its 27th outlet in
March 2012 in Layan Community. Waitrose also opened two more outlets in Abu Dhabi in 2013
due to the growing demand for home delivery. ADCOOP (Abu Dhabi Cooperative Society) the
hypermarket partnered up with Spar International supermarkets in January 2013 to leverage the
opportunity to enter the Middle East as an international brand, and are looking to develop the
SPAR multi-format retail strategy by opening convenience and supermarket outlets.
As consumer habits began to evolve, this benefited the retailing industry towards the end of
the review period as convenience stores, forecourt retailers and supermarkets saw the highest
growth in current value terms. These categories picked up towards the end of the review period
as consumers were spending more time making regular shopping trips, and it was more
convenient for them to have stores close to residential areas. In 2013, convenience stores saw
the highest growth, at 8%, as a result. Despite this, hypermarkets are still the most significant
channel in retail value terms, accounting for 52% of overall sales of grocery retailers in 2013,
while supermarkets accounted for 21% of grocery retailers sales.
In addition, strict Food Control Authority regulations were implemented in 2013, and some
traditional grocery retailers were forced to shut down as they could not afford to maintain the
standard required by the government. These stores were then replaced by supermarkets and
convenience stores. This helped boost modern grocery retailers by the end of the review period.
Furthermore, convenience stores were the fastest-growing channel at 8% in 2013. This
picked up as players such as Emirates National Oil Co (ENOC) with its brand Zoom benefited
from developments in metro stations as stand-alone outlets, in addition to their availability in 56
petrol stations across the country. Consumers also visit convenience stores more regularly, and
purchase food products as they are filling up on petrol.
Furthermore, with shopping centre developments over the review period, and more grocery
shopping being done in hypermarkets due to the hot weather climate, outlets of independent
small grocers shrank by 4% in 2013.
T Choithram & Sons Dubai led supermarkets with a 21% value share, followed by Emke
Group with an 18% value share and Spinneys Group Ltd with a 14% value share, in 2013.
Choithram has benefited from its new supermarket outlets, which opened at the end of the
review period. Lulu has a wide presence and hence this has maintained Emke Groups position
across the country, while Spinneys plays on its freshness factor, following the health and
wellness trend. It also sells products that are not available in Carrefour Market or Lulu, and its
prices are higher than these supermarkets.
Outlook
The government as well as grocery retailers is introducing initiatives to help support the
emergence of modern grocery retailers in the United Arab Emirates. This has been done
already over the review period by the government ensuring that grocery retailers meet quality
assurance standards enforced by the Food Control Authority, to ensure that consumers are
consuming the best quality of food. This has also introduced opportunities for well-established
entrepreneurs to venture out into other channel formats due to their strong presence, benefiting
residential neighbourhoods and maintaining the correct quality. This is expected to increase
over the forecast period as more forecourt retailers, supermarkets and convenience stores open
up to meet the growing demand.
Following this trend, it is expected that over the forecast period will increase in number: by an
8% CAGR for convenience stores, a 5% CAGR for supermarkets and a 2% CAGR for forecourt
retailers. With the positive economic outlook and population growth expected, retail
consolidation is likely to occur to leverage resources as well as meet the growing need for
convenient outlets.
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In addition, with higher disposable incomes anticipated as more expatriates influx the country,
and expected real GDP growth of 4%, over the forecast period consumers will be more
confident in spending, especially in more premium supermarkets such as Choithram, Waitrose
and Spinneys.
One of the leading hypermarket players, Majid Al Futtaim Hypermarkets LLC, plans to expand
by acquiring Abraaj Groups stake in the Spinneys supermarket chain franchise outside the UAE
and expand across the Middle East. Abraaj Group is a private equity firm headquartered in
Dubai. As supermarkets will grow in popularity due to their home delivery services and
availability among residential areas, especially with the real-estate industry expected to boom
over the forecast period, major players will seek to leverage resources to attain the expertise
that supermarkets are currently portraying in the market.
Convenience stores are also expected to benefit from high footfall in outlets as more
expatriates enter the country given the positive economic outlook. Demand for more stand-alone
outlets will also benefit convenience stores as they set up in commercial towers. The category
will also benefit from the decline in independent small grocers.
In the forecast period, supermarkets with benefit from a constant value CAGR of 5% followed
by a slightly less constant value CAGRs for forecourt retailers and convenience stores.
Supermarkets will emerge as the fastest-growing modern grocery retailers channel in constant
value terms, as consumers will demand more outlets, due to the growing need for convenient
shopping methods and home delivery among locals. Real-estate development will also increase
the need for more supermarkets as family-oriented expatriates move into the outer suburbs.
Growing Shopping Centre Developments Lead To More Retail Sales

Area
Apart from internet retailing and tourism, the real-estate industry is another focus area that the
United Arab Emirates is looking at to continue growing the countrys economy. During the
beginning of the review period in 2009 the real-estate market faced one of the hardest hits
during the financial downturn, with prices dropping by up to 60%. This then picked up in different
stages in 2011 and 2012 after the US$25 billion Dubai world debt rescheduling was signed off.
Then property companies such as Nakheel and Emaar Properties continued working on some of
the projects that were put on hold, and the whole real-estate market started picking up again.
Dubai was ranked as second in the global real-estate property market in 2012, with Hong
Kong, China first according to Forbes ranking. House prices shot up by 19% in 2012. In 2013,
there was a high rise in home-buying among expatriates as well as investors, leading Dubai to
the top of the global ladder.
In 2013, there were European expatriates fleeing high taxation, and establishing themselves
in Dubai, as well as Chinese people worried about property crashes in their own countries and
seeking to invest their money overseas in the United Arab Emirates. A growing number of Arab
expatriates moving away from political instability as well as the economic uplift led expatriates
back into the United Arab Emirates. A report by Deutsche Bank reports that Dubai real-estate
prices and rents witnessed a 16th consecutive monthly increase in March 2013 after the steady
recovery with the return in investors confidence in Dubai. The recovery that began in 2011 in
prime properties is now moving to second-tier communities. In response, property developers
are accelerating project launches.
An Asteco report states that, in Q1 in 2013, Dubai apartment prices rose by 12% in value and
villa prices lagged by 5% rise. On the other hand villa rents were up by 4% compared to an
average of 3% rent increase in apartments. The year-on-year rent growth ranged at 19% and
21% for apartments and villas respectively for Dubai in Q1 2013. In Q2 2013, property prices
were up by 17% especially in areas such as Discovery Gardens and The Greens. According to
Asteco report, apartment sale prices grew by 12% on average in Q2 and villa prices rose by 8%,
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similar to Q1 2013. Overall Dubai property prices rose by 42% in the past year of 2013 and
rentals up by 23% due to political stability, trade links, great infrastructure and attractive tax
environment. On the other hand Abu Dhabis property prices rose by 26% and rents increasing
by over 20% over the past year.
According to the Deutsche Bank report, property prices in Dubai have seen 6.2% growth in
the first three months of 2013. Furthermore, data from Dubai Land Department shows that the
value of property transactions in Dubai increased by 63% to AED44 billion in Q1 in 2013
compared with Q1 in 2012. According to real-estate specialist Jones Lang LaSalle, Burj
Downtown, Dubai Marina and Palm Jumeirah have seen the highest jumps in rents while more
established communities in Central Dubai are expected to see further price and rental growth in
2013. Less complete projects will need more time to witness high price growth.
Arabian Ranches in Dubai has seen a rent spike of 25% year-on-year. Furthermore, Abu
Dhabi remains 18-24 months behind Dubai and was not expected to experience an upturn in
2013, but will recover in 2014 as a number of infrastructure projects are scheduled to be
launched then.
The financial crisis in 2008-2009 also affected the retail development market as developers
focused more on shopping centre projects, and shifted their focus away from real-estate
developments during the review period. In Abu Dhabi a total of 260,000 sq m of retail space was
added to the 1.7 million sq m available in 2012, according to property consultancy Jones Lang
LaSalle. Hence retail space continued expanding at the end of the review period. Furthermore,
non-grocery retailers were growing between 2011 and 2012 as well as in 2013. This was mainly
because they were taking advantage of the low rents in smaller shopping centres at the time.
Al Tayer Group, a local franchise partner, continued bringing in international brands such as
Gucci, Prada and Miu Miu in 2011. Azadea Group also launched its first Middle Eastern store,
Asdas fashion label George, in Abu Dhabi in October 2012. MAF Fashion LLC also opened its
first Hollister store in Dubai in 2013, due to the retail market being boosted by different
shoppers. It also opened a shopping centre in Fujairah in 2013, which has increased the
number of apparel retail outlets under its company name. As a result, outlet number for nongrocery retailers recorded an increase over the review period, at a 3% CAGR.
However, as the real-estate market picked up and tourism boomed, retailing space increased,
which led to soaring rents in major shopping centres In the United Arab Emirates at the end of
the review period. Store rentals in Dubai Mall and Mall of the Emirates and Deira City Centre
increased by 15-20% in 2012, squeezing margins and leading some retailers to move to
cheaper locations. Gant Hypermarket by Fu-Com International signed a lease to open its store
in Dubai Dragon Mart in 2012 as Nakheel extended Dragon Mart phase 2 in the same year,
adding 177,000 sq m to the existing shopping centre with the total size becoming 335,000 sq m.
Outlook
Real-estate developments of shopping centres will continue to prosper over the forecast
period in the United Arab Emirates. This will be mainly driven through high tourism, disposable
income growth and a more affluent population, leading to more shopping centre developments
over the coming period. A new shopping centre was due to open in Al Bahia in Abu Dhabi by the
end of 2013. Yas Mall is set to open in 2014. Majid Al Futtaim Hypermarkets LLC is in the
process of opening up a shopping centre in Abu Dhabi, of a similar size to Mirdif City Centre.
Abu Dhabi is also expected to see an AED1.0 billion mega shopping centre open at Al Maryah
Island, near to Saadiyat Island, in 2017.
Furthermore, other Emirates are also expected to see shopping centre expansion, such as
Dubai. According to industry sources, Nakheel Mall on the Palm is due to be launched in 2016
with 100,000 sq m retail space including five retail levels. Jumeirah Park is expected to get a
new Gant-led neighbourhood shopping centre, while Nakheel was looking at doubling the size
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10
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of Ibn Battuta and expanding Dragon Mart shopping centre in 2013. The worlds biggest
shopping centre is in construction in Mohammed Bin Rashid City. The city will be complete in
2020, and will include more than 100 hotels, the worlds biggest shopping centre, golf courses, a
hub for arts, centres to develop small businesses, and a park that will be 30% larger than Hyde
Park in London and partly developed by Universal Studios; however, no launch date has been
given for the shopping centre as of yet.
Over the forecast period, with the further development of shopping centres and growing
demand, the retail landscape is expected to change further. More international brands will influx
the country as already experienced towards the end of the review period. Retailing will increase
at a constant value CAGR of 4% over the forecast period, and is expected to be supported by
an increase in retail space as well as an increase in the number of outlets, which are predicted
to rise at 3% and 2% CAGRs respectively. For example, MAF Fashion LLC is looking to launch
US fashion retail brand Abercrombie & Fitch in Dubai from 2014. As a result of predicted
growing demand for retail outlets in shopping centres, high rental prices in well-established toptier shopping centres may encourage some players to move to lower-tier ones or newly
developed ones where outlet rental prices are still not established.
In addition, with the growing number of shopping centres, more convenient formats will open
up over the forecast period. Also, as shopping centres will be open near neighbourhoods,
convenient formats such as supermarkets for weekly grocery shopping as well as home delivery
will grow in number. While hypermarkets sales area is expected to increase at a 3% CAGR,
supermarkets will increase by an 8% CAGR. Supermarkets is also expected to see a 5% CAGR
in terms of outlets, in comparison with the 2% CAGR expected for hypermarkets. Waitrose by
Fine Fare Food Market LLC was expected to open two more supermarkets in Abu Dhabi in
2013, and Majid Al Futtaim Hypermarkets LLC was also looking at introducing its first
convenience outlet in Abu Dhabi in August 2013 and rebranding its supermarket with the relaunch of Carrefour Market. It is also looking at acquiring part of the Spinneys supermarket
chain after acquiring a 25% stake in Carrefour in a Middle East joint venture, as it looks to
expand its retail business across the region.
Consequently, the retail environment will grow dynamically over the forecast period with the
growth of shopping centres. International brands will all be driven by the positive economic
outlook and stability in the country as the real-estate industry booms. Consumers, both tourists
and locals, will have a wider product choice, which will benefit retail sales growth. Despite this,
prices are likely to increase, compensating for high rental prices in well-established shopping
centres. These shopping centres will face competition with new shopping centres that will open
during the forecast period, and hence in Abu Dhabi this competition is likely to restrict outlet
rental prices from going up in comparison with Dubai.
MARKET INDICATORS
Table 1
Employment in Retailing 2008-2013
Total employment ('000

people)
Employment in retailing
('000 people)
Employment in retailing
(%) (% of total
employment)
2008
2009
2010
2011
2012
2013
4,341.9
5,695.6
5,751.7
5,735.7
5,677.3
5,675.4
530.0
510.0
580.0
620.0
689.0
710.0
12.2
9.0
10.1
10.8
12.1
12.5
11
Source:
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Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews
MARKET DATA
Table 2
Sales in Retailing by Channel: Value 2008-2013
AED million, retail value rsp excl sales tax
Store-based Retailing
Non-Store Retailing
Retailing
Source:
Table 3
2008
2009
2010
2011
2012
2013
76,544.3
1,696.2
78,240.5
78,769.0
1,823.4
80,592.4
81,280.1
2,007.2
83,287.3
84,590.3
2,229.9
86,820.2
88,776.8
2,505.6
91,282.4
94,045.2
2,957.1
97,002.3
trade interviews, trade sources
Sales in Retailing by Channel: % Value Growth 2008-2013
% current value growth, retail value rsp excl sales tax
Non-Store Retailing
Retailing
Source:
Table 4
2012/13
2008-13 CAGR
2008/13 Total
5.9
18.0
6.3
4.2
11.8
4.4
22.9
74.3
24.0
Sales in Store-Based Retailing by Channel: Value 2008-2013
Grocery Retailers
Non-Grocery Retailers
Luxury Retail
Source:
Table 5
2008
2009
2010
2011
2012
2013
31,136.1
45,408.2
76,544.3
31,631.7
47,137.3
78,769.0
32,352.7
48,927.4
81,280.1
33,495.0
51,095.3
2,344.4
84,590.3
35,156.9
53,619.9
2,607.7
88,776.8
37,029.4
57,015.8
2,992.4
94,045.2
Store-Based Retailing Outlets by Channel: Units 2008-2013
outlets
Grocery Retailers
Luxury Retail
2008
2009
2010
2011
2012
2013
9,731
10,483
20,214
9,670
10,738
20,408
9,565
11,005
20,570
9,413
11,311
133
20,724
9,405
11,656
148
21,061
9,514
12,039
159
21,553
12
Source:
Passport
Table 6
Sales in Store-Based Retailing by Channel: % Value Growth 2008-2013
Grocery Retailers
Luxury Retail
Source:
2012/13
2008-13 CAGR
2008/13 Total
5.3
6.3
14.8
5.9
3.5
4.7
4.2
18.9
25.6
22.9
Table 7
Store-Based Retailing Outlets by Channel: % Unit Growth 2008-2013
% unit growth
Grocery Retailers
Luxury Retail
Source:
2012/13
2008-13 CAGR
2008/13 Total
1.2
3.3
7.4
2.3
-0.5
2.8
1.3
-2.2
14.8
6.6
Table 8
Sales in Non-store Retailing by Channel: Value 2008-2013
Direct Selling
Homeshopping
Internet Retailing
Vending
Non-Store Retailing
Source:
Note:
2008
2009
2010
2011
2012
2013
364.5
58.0
1,178.0
95.7
1,696.2
383.3
68.7
1,251.2
120.2
1,823.4
423.1
75.6
1,359.1
149.4
2,007.2
473.3
80.6
1,497.6
178.4
2,229.9
540.4
85.8
1,670.5
208.8
2,505.6
612.4
90.2
2,000.2
254.3
2,957.1
Vending data captures vending systems installed in public and semi-captive environments only. For
further details refer to definitions.
Table 9
Sales in Non-store Retailing by Channel: % Value Growth 2008-2013
Direct Selling
Homeshopping
Internet Retailing
Vending
2012/13
2008-13 CAGR
2008/13 Total
13.3
5.1
19.7
21.8
10.9
9.2
11.2
21.6
68.0
55.6
69.8
165.8
13
Passport
Non-Store Retailing
Source:
Note:
18.0
11.8
74.3
Table 10
Sales in Retailing by Grocery vs Non-Grocery: 2008-2013
% retail value rsp excl sales tax
Grocery
Non-Grocery
Total
Source:
Table 11
Table 12
2009
2010
2011
2012
2013
39.0
61.0
100.0
40.0
60.0
100.0
40.0
60.0
100.0
41.0
59.0
100.0
42.3
57.7
100.0
43.4
56.6
100.0
Non-Grocery Retailers: Value Sales, Outlets and Selling Space 2008-2013
Value sales AED million

Outlets
Selling Space '000 sq m
Source:
2008
2008
2009
2010
2011
2012
2013
45,408.2
10,483.0
2,609.1
47,137.3
10,738.0
2,773.6
48,927.4
11,005.0
2,864.1
51,095.3
11,311.0
2,936.3
53,619.9
11,656.0
3,020.5
57,015.8
12,039.0
3,117.5
Sales in Non-Grocery Retailers by Channel: Value 2008-2013
Apparel and Footwear

Specialist Retailers
Electronics and
Appliance Specialist
Retailers
Health and Beauty
Home and Garden
Leisure and Personal
Goods Specialist
Retailers
Mixed Retailers
Other Non-Grocery
Retailers
Source:
Table 13
2008
2009
2010
2011
2012
2013
12,357.4
12,620.6
13,025.7
13,589.8
14,337.2
15,453.9
5,106.0
5,321.0
5,587.6
5,891.0
6,232.2
6,601.8
7,100.0
7,365.4
7,713.5
8,123.9
8,586.2
9,122.7
6,483.4
6,746.3
7,029.8
7,340.1
7,662.1
8,193.5
8,176.9
8,547.3
8,801.8
9,122.8
9,505.3
10,041.0
4,521.0
1,663.4
4,773.4
1,763.2
4,944.0
1,824.9
5,140.0
1,887.7
5,370.4
1,926.4
5,626.8
1,976.1
45,408.2
47,137.3
48,927.4
51,095.3
53,619.9
57,015.8
Non-Grocery Retailers Outlets by Channel: Units 2008-2013
14
Passport
outlets

Electronics and
Retailers
Health and Beauty
Home and Garden
Goods Specialist
Retailers
Mixed Retailers
Other Non-Grocery
Retailers
Source:
2008
2009
2010
2011
2012
2013
2,506
2,556
2,633
2,738
2,808
2,907
419
427
439
452
463
476
2,095
2,146
2,187
2,259
2,345
2,431
1,590
1,621
1,640
1,668
1,713
1,764
2,565
2,650
2,745
2,818
2,916
3,008
349
959
359
979
367
994
372
1,004
384
1,027
396
1,057
10,483
10,738
11,005
11,311
11,656
12,039
Table 14
Sales in Non-Grocery Retailers by Channel: % Value Growth 2008-2013
Apparel and Footwear Specialist

Retailers
Electronics and Appliance Specialist
Retailers
Health and Beauty Specialist Retailers
Home and Garden Specialist Retailers
Leisure and Personal Goods Specialist
Retailers
Mixed Retailers
Other Non-Grocery Retailers
Source:
2012/13
2008-13 CAGR
2008/13 Total
7.8
4.6
25.1
5.9
5.3
29.3
6.2
6.9
5.6
5.1
4.8
4.2
28.5
26.4
22.8
4.8
2.6
6.3
4.5
3.5
4.7
24.5
18.8
25.6
Table 15
Non-Grocery Retailers Outlets by Channel: % Unit Growth 2008-2013
% unit growth

Retailers
Retailers
Retailers
Mixed Retailers
2012/13
2008-13 CAGR
2008/13 Total
3.5
3.0
16.0
2.8
2.6
13.6
3.7
3.0
3.2
3.0
2.1
3.2
16.0
10.9
17.3
3.1
2.9
2.6
2.0
13.5
10.2
15
Passport
Source:
3.3
14.8
Table 16
Retailing Company Shares: % Value 2009-2013

Company
Majid Al Futtaim
Hypermarkets LLC
Emke Group
Al-Futtaim Group LLC
Union Co-operative
Society
Damas LLC
Landmark Group
Abu Dhabi Cooperative
Society
Azadea Group
M H Alshaya Co
Paris Gallery LLC
Sharaf DG LLC
T Choithram & Sons Dubai
Life Healthcare Group
Jumbo Electronics Co LLC
Alphamed Group
Majid Al Futtaim
Fashion LLC
Spinneys Group Ltd
Al Tayer Group
National Trading &
Development Est (NTDE)
Rivoli Group
Others
Total
Source:
2.8
2009
2010
2011
2012
2013
6.9
7.2
7.4
7.8
7.9
3.9
3.8
3.4
4.3
4.1
3.5
4.8
4.2
4.0
4.9
4.5
4.1
5.0
4.9
4.1
5.2
2.1
1.7
3.7
2.5
1.8
3.7
2.8
2.1
3.8
3.0
2.1
3.9
3.1
2.2
1.3
1.4
1.8
1.2
1.4
1.1
1.1
0.9
0.9
1.5
1.5
1.8
1.3
1.5
1.1
1.1
0.9
0.9
1.7
1.7
1.9
1.5
1.6
1.1
1.1
1.0
1.0
1.9
1.8
1.6
1.6
1.6
1.2
1.2
1.0
1.0
2.0
1.9
1.9
1.8
1.7
1.2
1.2
1.1
1.1
1.0
0.7
0.9
1.0
0.9
0.9
1.0
0.9
0.9
1.0
1.0
0.9
1.1
1.0
1.0
0.9
58.1
100.0
0.9
57.4
100.0
0.9
54.5
100.0
0.9
53.1
100.0
1.0
50.9
100.0
Table 17
Retailing Brand Shares: % Value 2010-2013

Brand
Company
Carrefour
Union Co-operative
Society
Damas
IKEA
Lulu Hypermarket
ADCOOP
Paris Gallery
Sharaf DG
Choithram
Life
Majid Al Futtaim
Hypermarkets LLC
Damas LLC
Emke Group
Society
Paris Gallery LLC
Sharaf DG LLC
2010
2011
2012
2013
6.9
7.1
7.2
7.3
3.5
4.0
4.1
4.1
3.7
2.4
2.2
1.8
3.7
2.5
2.6
2.1
3.8
2.7
2.8
2.1
3.9
3.0
3.0
2.2
1.8
1.3
1.5
1.1
1.9
1.4
1.6
1.1
1.6
1.5
1.6
1.2
1.9
1.8
1.7
1.2
16
Jumbo Electronics
Bin Sina
E-Max
Spinneys
Home Centre
Smoker's Centre
Rivoli
Jacky's
Marina
Emirates
Cooperative Society
Others
Total
Source:
Table 18

Alphamed Group
Landmark Group
Spinneys Group Ltd
Landmark Group
National Trading &
Rivoli Group
Jacky's Electronics LLC
Marina Home Interiors
1.1
1.0
1.0
1.0
0.9
0.9
1.2
1.0
1.1
1.0
0.9
0.9
1.2
1.1
1.1
1.1
1.0
1.0
0.9
0.9
0.6
0.7
0.9
0.9
0.7
0.7
0.9
0.8
0.7
0.8
0.9
0.9
0.8
0.8
65.0
100.0
62.6
100.0
61.9
100.0
60.2
100.0
Store-Based Retailing Company Shares: % Value 2009-2013
Majid Al Futtaim
Hypermarkets LLC
Emke Group
Union Co-operative
Society
Damas LLC
Landmark Group
Society
Azadea Group
M H Alshaya Co
Paris Gallery LLC
Sharaf DG LLC
Alphamed Group
Majid Al Futtaim
Fashion LLC
Spinneys Group Ltd
Al Tayer Group
National Trading &
Rivoli Group
Others
Total
Table 19
1.1
0.9
0.8
1.0
0.9
0.9

Company
Source:
Passport
2009
2010
2011
2012
2013
7.1
7.4
7.5
7.9
8.0
4.0
3.9
3.5
4.4
4.2
3.6
4.9
4.3
4.1
5.0
4.6
4.2
5.2
5.0
4.2
5.3
2.2
1.8
3.8
2.5
1.9
3.8
2.9
2.2
3.9
3.0
2.2
4.0
3.2
2.3
1.4
1.5
1.8
1.2
1.5
1.1
1.2
0.9
0.9
1.5
1.6
1.9
1.4
1.5
1.1
1.1
0.9
1.0
1.7
1.7
1.9
1.5
1.7
1.2
1.1
1.0
1.0
1.9
1.9
1.7
1.6
1.7
1.2
1.2
1.1
1.0
2.1
2.0
2.0
1.9
1.7
1.3
1.3
1.2
1.1
1.0
0.7
1.0
1.0
0.9
0.9
1.1
1.0
0.9
1.1
1.0
0.9
1.1
1.1
1.0
0.9
57.1
100.0
0.9
56.4
100.0
0.9
53.4
100.0
0.9
51.9
100.0
1.0
49.5
100.0
2012
2013
Store-Based Retailing Brand Shares: % Value 2010-2013

Brand
Company
2010
2011
17
Carrefour
Majid Al Futtaim
Hypermarkets LLC
Union Co-operative
Society
Damas
IKEA
Lulu Hypermarket
ADCOOP
Paris Gallery
Sharaf DG
Choithram
Life
Jumbo Electronics
Bin Sina
E-Max
Spinneys
Home Centre
Smoker's Centre
Rivoli
Jacky's
Marina
Emirates
Cooperative Society
Others
Total
Source:
Damas LLC
Emke Group
Society
Paris Gallery LLC
Sharaf DG LLC
Alphamed Group
Landmark Group
Spinneys Group Ltd
Landmark Group
National Trading &
Rivoli Group
Passport
7.1
7.2
7.3
7.3
3.6
4.1
4.2
4.2
3.8
2.5
2.3
1.9
3.8
2.6
2.7
2.2
3.9
2.8
2.9
2.2
4.0
3.1
3.0
2.3
1.9
1.3
1.5
1.1
1.1
0.9
0.8
1.0
0.9
0.9
1.9
1.5
1.7
1.2
1.1
1.0
1.0
1.1
0.9
0.9
1.7
1.6
1.7
1.2
1.2
1.1
1.1
1.1
1.0
0.9
2.0
1.8
1.7
1.3
1.3
1.2
1.1
1.1
1.0
1.0
0.9
0.9
0.6
0.7
0.9
0.9
0.7
0.8
0.9
0.9
0.8
0.8
1.0
0.9
0.8
0.8
64.2
100.0
61.7
100.0
60.9
100.0
59.1
100.0
Table 20
Store-Based Retailing Brand Shares: Outlets 2010-2013
sites/outlets
Brand
ADNOC Oasis
Damas
Emarat / Emarat Plus
Life
Aster Pharmacy
Aldo
Zoom
Spinneys
Rivoli
Bin Sina
Pierre Cardin
Al Maya Supermarket
Boots
Al Jaber Optical
Mothercare
Splash
Choithram
Grand Optics
Sun & Sand
Smoker's Centre
Aqua Mart
Company
Abu Dhabi National Oil Co
Damas LLC
Emarat Misr SAE
DM Healthcare LLC
Apparel Group
Emirates National Oil
Co (ENOC)
Spinneys Group Ltd
Rivoli Group
Alphamed Group
Paris Group LLC
Al Maya Group
M H Alshaya Co
Bausch & Lomb Inc
M H Alshaya Co
Landmark Group
Grand Optics LLC
Sun & Sand LLC
National Trading &
Co (ENOC)
2010
2011
2012
2013
138
123
93
58
59
55
18
132
126
94
63
64
56
19
148
131
92
70
69
56
55
150
141
80
70
69
59
56
37
32
43
32
27
28
27
31
25
24
27
22
31
39
35
36
34
28
27
29
32
26
25
28
29
32
40
38
36
36
30
33
31
33
30
27
29
29
28
47
39
37
37
37
35
35
34
33
31
30
29
28
57
58
18
Mini Mart
Passport

Co (ENOC)
Others
Total
Source:
19,543
20,570
19,671
20,724
20,020
21,061
20,476
21,553
Non-store Retailing Company Shares: % Value 2009-2013

Company
Jabbar Internet Group
FZ LLC
Amazon.com Inc
Majid Al Futtaim
Hypermarkets LLC
ellamart.com
Trolley Trading
Early Bird Catering
Services LLC
JadoPado Ltd
Namshi General Trading
LLC
Middle East Trading
Store LLC
Jackson Trading Co Llc
Al Hathboor
International Avon
Net-A-Porter Ltd
MarkaVIP
Reebonz HK Ltd
Maktoob Inc
Others
Total
Note:
41
Table 21
Source:
40
2009
2010
2011
2012
2013
4.3
5.0
10.0
10.2
9.6
4.0
-
4.7
-
5.2
3.8
6.0
4.5
5.8
4.9
1.8
1.0
1.9
1.2
2.1
1.3
2.3
2.3
1.5
1.9
1.7
1.4
0.5
-
0.6
1.3
1.3
1.2
0.7
0.8
1.0
1.1
1.1
1.2
0.8
1.2
0.8
1.1
0.7
1.1
0.7
1.0
0.6
86.1
100.0
0.5
83.9
100.0
0.6
0.4
73.4
100.0
0.6
0.5
0.4
66.9
100.0
0.5
0.5
0.4
68.3
100.0
Table 22
Non-store Retailing Brand Shares: % Value 2010-2013

Brand
Company
Amazon
Souq.com
Carrefour
Sukar
Ellamart
Trolley
Earlybird
Jadopado.com
Amazon.com Inc
FZ LLC
Majid Al Futtaim
Hypermarkets LLC
FZ LLC
ellamart.com
Trolley Trading
Early Bird Catering
Services LLC
JadoPado Ltd
2010
2011
2012
2013
4.7
5.0
5.2
5.6
6.0
5.5
5.8
5.4
3.8
4.5
4.9
4.4
4.7
4.2
1.9
1.2
2.1
1.3
2.3
2.3
1.5
1.9
1.7
1.4
0.5
0.6
1.3
19
namshi
Bebida
Namshi General Trading LLC

Middle East Trading
Store LLC
Jackson Trading Co Llc
Al Hathboor
International Avon
Net-A-Porter Ltd
Dallmayr Kaffee
Avon
Net-A-Porter
MarkaVIP
Reebonz
Souq.com
Others
Total
Source:
Note:
Passport
Reebonz HK Ltd
Maktoob Inc
1.0
1.3
1.1
1.2
1.1
1.2
0.8
1.1
0.7
1.1
0.7
1.0
0.6
0.5
83.9
100.0
0.6
0.4
73.4
100.0
0.6
0.5
0.4
66.9
100.0
0.5
0.5
0.4
68.3
100.0
Table 23
Non-Grocery Retailers Company Shares: % Value 2009-2013

Company
Damas LLC
Landmark Group
Azadea Group
M H Alshaya Co
Paris Gallery LLC
Sharaf DG LLC
Alphamed Group
Majid Al Futtaim
Fashion LLC
Al Tayer Group
Rivoli Group
Apparel Group
Jashanmal National Co
DM Healthcare LLC
Sharaf Retail LLC
Emke Group
Others
Total
Source:
0.8
2009
2010
2011
2012
2013
6.6
8.9
3.6
2.3
2.5
3.1
2.1
1.8
1.9
1.5
1.6
6.9
6.3
4.2
2.5
2.6
3.1
2.3
1.9
1.8
1.6
1.6
7.2
6.4
4.8
2.8
2.9
3.2
2.5
2.0
1.9
1.7
1.6
7.7
6.4
5.0
3.2
3.1
2.8
2.7
2.0
2.0
1.8
1.7
8.3
6.6
5.3
3.5
3.3
3.3
3.1
2.1
2.1
1.9
1.8
1.1
1.5
1.5
1.0
1.0
1.4
1.0
0.6
1.2
54.0
100.0
1.5
1.5
1.5
1.0
1.1
1.3
1.1
0.6
1.2
54.2
100.0
1.6
1.6
1.5
1.1
1.1
1.3
1.1
0.9
1.2
51.8
100.0
1.7
1.6
1.4
1.3
1.2
1.3
1.1
1.0
1.1
50.0
100.0
1.8
1.6
1.5
1.4
1.3
1.2
1.2
1.1
1.1
46.6
100.0
Table 24
Non-Grocery Retailers Brand Shares: % Value 2010-2013

Brand
Company
Damas
IKEA
Paris Gallery
Sharaf DG
Damas LLC
Paris Gallery LLC
Sharaf DG LLC
2010
2011
2012
2013
6.3
4.1
3.1
2.2
6.4
4.3
3.2
2.4
6.4
4.7
2.8
2.6
6.6
5.1
3.3
3.0
20
Life
Jumbo Electronics
Bin Sina
E-Max
Home Centre
Rivoli
Jacky's
Marina
Ace Hardware
Aster Pharmacy
Aldo
Forever 21
Jashanmal
Splash
Debenhams
The One

Alphamed Group
Landmark Group
Landmark Group
Rivoli Group
DM Healthcare LLC
Apparel Group
Sharaf Retail LLC
Jashanmal National Co
Landmark Group
M H Alshaya Co
One Retail Network Ltd,
The
Others
Total
Source:
2.0
1.9
1.7
1.7
1.5
1.5
1.5
1.1
1.1
1.1
1.0
0.9
1.2
1.0
0.9
0.8
2.0
2.0
1.8
1.8
1.6
1.5
1.4
1.3
1.2
1.1
1.1
1.0
1.2
1.0
1.0
0.9
2.1
2.1
1.9
1.9
1.7
1.6
1.5
1.4
1.2
1.2
1.2
1.1
1.1
1.1
1.0
1.0
64.7
100.0
62.8
100.0
61.7
100.0
59.1
100.0
Non-Grocery Retailers Brand Shares: Outlets 2010-2013
sites/outlets
Brand
Company
Damas
Life
Aster Pharmacy
Aldo
Rivoli
Bin Sina
Pierre Cardin
Boots
Al Jaber Optical
Mothercare
Splash
Grand Optics
Sun & Sand
Nine West
Aldo Accessories
Paris Gallery
The Body Shop
Arabian Oud
Yateem Optician
Max
Others
Total
Table 26
1.9
1.8
1.6
1.3
1.5
1.5
1.5
1.0
1.1
1.1
1.0
0.6
1.2
0.9
0.8
0.7
Table 25
Source:
Passport
Damas LLC
DM Healthcare LLC
Apparel Group
Rivoli Group
Alphamed Group
Paris Group LLC
M H Alshaya Co
Bausch & Lomb Inc
M H Alshaya Co
Landmark Group
Grand Optics LLC
Sun & Sand LLC
Apparel Group
Apparel Group
Paris Gallery LLC
Cosmetics Trading LLC
Arabian Oud Co
Yateem Group, The
Landmark Group
2010
2011
2012
2013
123
58
59
55
32
43
32
28
27
31
25
27
22
22
22
27
18
22
19
14
10,299
11,005
126
63
64
56
35
36
34
27
29
32
26
28
29
25
24
26
18
24
21
13
10,575
11,311
131
70
69
56
38
36
36
33
31
33
30
29
29
26
26
17
25
24
23
10
10,884
11,656
141
70
69
59
39
37
37
35
35
34
33
30
29
28
28
26
25
24
24
23
11,213
12,039
2012
2013
Non-Grocery Retailers Brand Shares: Selling Space 2010-2013
surface area '000 sq m

Brand
Company
2010
2011
21
Pan Emirates
IKEA
Splash
Sharaf DG
Marks & Spencer
Home Centre
Debenhams
Max
Boots
Sun & Sand
Woolworths
Ace Hardware
E-Max
Homes r Us
BHS
Toys "R" Us
Bloomingdales
Next
The One

Landmark Group
Sharaf DG LLC
Landmark Group
M H Alshaya Co
Landmark Group
M H Alshaya Co
Sun & Sand LLC
Sharaf DG LLC
Landmark Group
Lals Group
Al Maya Group
Al Tayer Group
M H Alshaya Co
One Retail Network Ltd,
The
Sharaf Retail LLC
Forever 21
Others
Total
Source:
Table 27
Passport
32.5
30.0
39.0
33.4
36.6
46.5
36.0
33.6
24.5
21.3
31.3
15.8
17.2
15.3
9.0
14.5
18.5
16.6
18.9
32.5
52.0
41.4
36.7
37.8
46.5
37.9
31.9
25.6
27.1
27.0
15.8
23.0
15.3
9.0
16.9
18.5
16.6
18.9
81.2
52.0
47.9
48.9
44.4
42.3
37.9
24.5
27.1
27.0
27.0
19.7
23.0
18.7
14.0
16.9
18.5
16.6
17.3
101.2
52.0
51.4
49.5
44.4
42.3
37.9
29.4
27.9
27.0
27.0
25.5
23.5
20.5
20.0
19.0
18.5
18.2
17.2
14.7
2,358.9
2,864.1
16.0
2,389.9
2,936.3
16.0
2,399.6
3,020.5
16.5
2,448.7
3,117.5
Forecast Sales in Retailing by Channel: Value 2013-2018
Non-Store Retailing
Retailing
Source:
Note:
Table 28
2013
2014
2015
2016
2017
2018
94,045.2
2,957.1
97,002.3
98,810.5
3,381.7
102,192.2
103,086.6
3,818.0
106,904.7
106,896.9
4,250.4
111,147.3
110,663.5
4,778.4
115,441.9
114,338.6
5,397.2
119,735.7
Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Forecast value data in constant terms
Forecast Sales in Retailing by Channel: % Value Growth 2013-2018
% constant value growth, retail value rsp excl sales tax
Non-Store Retailing
Retailing
Source:
Table 29
2013-18 CAGR
2013/18 TOTAL
4.0
12.8
4.3
21.6
82.5
23.4
trade sources
Forecast Sales in Store-Based Retailing by Channel: Value 2013-2018
22
Grocery Retailers
Luxury Retail
Source:
Note:
Passport
2013
2014
2015
2016
2017
2018
37,029.4
57,015.8
2,992.4
94,045.2
39,080.8
59,729.7
98,810.5
40,786.4
62,300.2
103,086.6
42,160.9
64,736.0
106,896.9
43,487.0
67,176.5
110,663.5
44,799.1
69,539.5
114,338.6
trade sources
Table 30
Forecast Store-Based Retailing Outlets by Channel: Units 2013-2018
outlets
Grocery Retailers
Luxury Retail
Source:
2013
2014
2015
2016
2017
2018
9,514
12,039
159
21,553
9,676
12,399
22,075
9,923
12,764
22,687
10,117
13,133
23,250
10,298
13,423
23,721
10,506
13,689
24,195
trade sources
Table 31
Forecast Sales in Store-Based Retailing by Channel: % Value Growth 20132018

2013-18 CAGR
2013/18 TOTAL
3.9
4.1
4.0
21.0
22.0
21.6
Grocery Retailers
Luxury Retail
Source:
trade sources
Table 32
Forecast Store-Based Retailing Outlets by Channel: % Unit Growth 20132018
% unit growth
Grocery Retailers
Luxury Retail
Source:
Table 33
2017/18
2013-18 CAGR
2013/18 Total
2.0
2.0
2.0
2.0
2.6
2.3
10.4
13.7
12.3
trade sources
Forecast Sales in Non-store Retailing by Channel: Value 2013-2018
23
Direct Selling
Homeshopping
Internet Retailing
Vending
Non-Store Retailing
Source:
Note 1:
Note 2:
Table 34
Passport
2013
2014
2015
2016
2017
2018
612.4
90.2
2,000.2
254.3
2,957.1
707.1
94.3
2,269.0
311.3
3,381.7
800.6
97.6
2,576.9
343.0
3,818.0
862.0
100.5
2,917.0
370.9
4,250.4
923.3
102.7
3,358.6
393.8
4,778.4
976.4
105.0
3,904.1
411.7
5,397.2
trade sources
further details refer to definitions
Forecast Sales in Non-store Retailing by Channel: % Value Growth 20132018

2013-18 CAGR
2013/18 TOTAL
9.8
3.1
14.3
10.1
12.8
59.4
16.4
95.2
61.9
82.5
Direct Selling
Homeshopping
Internet Retailing
Vending
Non-Store Retailing
Source:
Note:
Table 35
trade sources
further details refer to definitions
Non-Grocery Retailers Forecasts: Value Sales, Outlets and Selling Space

2013-2018
Value sales AED million

Outlets
Selling Space '000 sq m
Source:
Note:
Table 36
2013
2014
2015
2016
2017
2018
57,015.8
12,039.0
3,117.5
59,729.7
12,399.0
3,211.5
62,300.2
12,764.0
3,304.4
64,736.0
13,133.0
3,396.6
67,176.5
13,423.0
3,482.4
69,539.5
13,689.0
3,557.1
Forecast Sales in Non-Grocery Retailers by Channel: Value 2013-2018

Electronics and
Retailers
Health and Beauty
Home and Garden
2013
2014
2015
2016
2017
2018
15,453.9
16,300.0
17,090.9
17,809.4
18,503.9
19,186.6
6,601.8
6,912.7
7,154.6
7,360.0
7,556.5
7,709.1
9,122.7
9,535.5
9,899.1
10,202.2
10,492.8
10,761.4
8,193.5
8,631.9
9,024.1
9,351.5
9,674.5
9,974.1
24
Goods Specialist
Retailers
Mixed Retailers
Other Non-Grocery
Retailers
Source:
Note:
Table 37
Passport
10,041.0
10,516.1
11,023.3
11,565.2
12,140.6
12,731.0
5,626.8
1,976.1
5,816.0
2,017.5
6,094.3
2,013.8
6,409.5
2,038.1
6,739.2
2,068.9
7,079.5
2,097.7
57,015.8
59,729.7
62,300.2
64,736.0
67,176.5
69,539.5
trade sources
Forecast Non-Grocery Retailers Outlets by Channel: Units 2013-2018
outlets

Electronics and
Retailers
Health and Beauty
Home and Garden
Goods Specialist
Retailers
Mixed Retailers
Other Non-Grocery
Retailers
Source:
Table 38
2013
2014
2015
2016
2017
2018
2,907
3,013
3,137
3,287
3,405
3,513
476
493
504
514
521
529
2,431
2,515
2,610
2,699
2,762
2,829
1,764
1,805
1,842
1,874
1,903
1,927
3,008
3,087
3,154
3,217
3,271
3,314
396
1,057
406
1,080
416
1,101
425
1,117
431
1,130
436
1,141
12,039
12,399
12,764
13,133
13,423
13,689
trade sources
Forecast Sales in Non-Grocery Retailers by Channel: % Value Growth 20132018
Apparel and Footwear Specialist Retailers

Electronics and Appliance Specialist Retailers
Leisure and Personal Goods Specialist Retailers
Mixed Retailers
Source:
2013-18 CAGR
2013/18 TOTAL
4.4
3.1
3.4
4.0
4.9
4.7
1.2
4.1
24.2
16.8
18.0
21.7
26.8
25.8
6.2
22.0
trade sources
25
Table 39
Passport
Forecast Non-Grocery Retailers Outlets by Channel: % Unit Growth 20132018
% unit growth

Retailers
Retailers
Retailers
Mixed Retailers
Source:
2017/18
2013-18 CAGR
2013/18 Total
3.2
3.9
20.8
1.5
2.1
11.1
2.4
1.3
1.3
3.1
1.8
2.0
16.4
9.2
10.2
1.2
1.0
2.0
1.9
1.5
2.6
10.1
7.9
13.7
trade sources
APPENDIX
Operating Environment
Informal retailing
Informal retailing is insignificant in the United Arab Emirates in comparison with other
countries in the Middle East. The number of businesses engaged is minimal mainly due to the
more restrictive government approach with regular check-ups on many areas that are known
for informal retailing, mainly in lower-class neighbourhoods.
Consumers in the United Arab Emirates are very fashion-conscious and brand-conscious and
hence the informal retailing market is insignificant among the mid-upper-income groups.
However, informal retailing is seen to be the strongest among low-income areas, which still
exist in parts of Old Dubai such as Al Karama, which is known to sell imitation products,
usually of brands. Other areas such as Naif Old Souk and Dragon Mart are also big trading
centres for Chinese products as well as bargains.
There is no official data available for informal retailing; however, trade press estimated a
value of AED23.0 billion in 2009. This channel saw the strongest growth following the
economic crisis in 2009. During this time there was high unemployment, with many workers
beginning to perform informal retailing to help maintain their income. This trend was mainly
popular in the Northern Emirates of the country as well as for workers in the construction
industry where unemployment was the highest as the real-estate industry dropped
tremendously. Furthermore, consumers were saving up more and seeking more bargains on
luxurious products as they became more price-sensitive during this time.
Informal retailing consumers are mainly from low-income groups, and were often workers
from India and East Asia at the start of the review period, as it was seen to be a source of
income for them. They are also located in low-income-group neighbourhoods, where the
products affordability makes informal retailing popular. Furthermore, during the review period
a growing number of mid-income consumers began to buy imitation designer clothing and
bags from informal channels, as these markets became popular among this group during the
crisis.
26
Passport
Informal channels are strong in particular product areas. These include some of the following:
designer bags, footwear, clothing, tobacco products, beauty and personal care and packaged
food. They are also strong in selling pirated DVDs, usually delivered directly to consumers
homes at a quarter of the price of a legally sold DVD. Thus these channels have posed strong
competition to grocery retailers and health and beauty specialist retailers as well as media
products stores over the review period as consumers resort to the easier option, such as
pirated DVDs, especially if they are delivered to their door.
Furthermore, luxury brands are also hit hard from counterfeits on offer in informal retailing,
including department stores, apparel specialist retailers and jewellery and watch specialist
retailers. Informal channels offer a wide range of premium brands including bags, luggage,
jewellery and watches. These are priced 20-30% less than what they are priced in-store by
luxury specialist retailers. Most of these purchases take place in apartments, as street
hawkers direct consumers to a private apartment to view a range of products on offer.
Opening hours
Summary 1
Channel
Standard Opening Hours by Channel Type 2013

24 hour present?
Saturday-Friday
Public holidays
Supermarkets
Yes
09.00-24.00
Open (limited hours)
Hypermarkets
No
09.00-24.00
Forecourt retailers
Yes
08.00-22.00
Open
Convenience stores
Yes
08.00-22.00
Non-grocery retailers
No (only during Eid Al

Fitr)
10.00-22.00
Open
Source:
The standard daily grocery retail opening hours in the United Arab Emirates are 9.00-24.00hrs
from Saturday to Friday and for non-grocery retailers during the week they usually open from
10.00-22:00. However, over the weekend non-grocery retailers stay open later until mid-night.
During festive times, such as Eid Al Adha and Eid Al Fitr, retail stores in shopping malls can
open 24 hours for some of the larger malls during that time. There are also no restrictions on
the number of opening days for retail outlets per year.
Opening hours however differ for different stores, for example hypermarkets such as Majid Al
Futtaims Carrefour, Emke Groups Lulu Hypermarket and Fu-Com Internationals Gant open
9.00-24.00hrs on weekdays and can extend to 01.00hrs on weekends. These grocery
retailers sell international brands, while grocery retailers that sell domestic brands such as
Abu Dhabi Cooperative Societys ADCOOP open from 8:00-24.00 Midnight seven days a
week.
During shopping festivals such as the Dubai Summer Festival and Dubai Shopping Surprises,
shopping centres are open for longer hours, in Dubai and Abu Dhabi mainly. The Dubai
Shopping Festival runs from January 2nd to February 2nd. Furthermore, Dubai Summer
Surprises runs from 7th of June to 7th of July. During this time non-grocery retail outlets are
usually open until mid-night.
Furthermore, some other outlets offer 24-hour opening times such as some supermarkets in
residential areas, convenience stores, independent small grocers and chemists/pharmacies.
Many forecourt retailers also remain open 24 hours. 24-hour openings are more common in
urban areas and less common in rural areas. This is because urban areas are busier and
have more of nightlife than rural areas in the United Arab Emirates. Over the review period
27
there was growth in the number of 24-hour outlets mainly as retailers were competing for
sales.
Most Emirates have relaxed opening-hour legislation in comparison with other countries such
as Saudi Arabia. Retail outlets are open on Friday, the Islamic day of rest, and during prayer
times. However, there is the exception of Sharjah, which is governed by Islamic regulations,
where retail outlets are closed during Friday prayer at 11.30-13.30hrs, and shopping centres
commence at 14.00hrs on Fridays. The same applies for Abu Dhabi on Fridays. Furthermore,
all retail outlets are required to close at prayer times in Ras al-Khaimah.
More traditional shops are open during 9.00am-13.00hrs and 16.00-21.00hrs as they close for
three hours in between. These retail outlets are mainly located in more rural areas such as
Satwa, Al Karama and Deira. They are not located in shopping centres, and close during the
day for lunch break and prayer time/rest.
Retail landscape
Most retailers are located in urban areas and within shopping centres. This is mainly due to
the extreme hot weather conditions in the country, making it uncomfortable for consumers to
shop outdoors for most of the year. Retailers mainly focus on high-footfall centres such as
Dubai Mall and Mall of the Emirates, also opting for city centre locations rather than out-oftown venues due to proximity purposes regarding consumers. Despite this, there are
exceptions such as Dragon Mart and The Outlet Mall, which are significant out-of town
shopping centres in the country. Due to their huge retail space they are located in the outer
suburbs of the United Arab Emirates.
New Dubai was created in the 2000s when the construction boom occurred, which created
new residential areas featuring new shopping centres. These were known as Mirdif City
Centre, Ibn Battuta Mall, Marina Mall and Mercato and Dubai Mall. In 2010, towards the end
of the economic crisis, 50 United Arab Emirates retailers joined forces to form the countrys
first retail association, complaining about poor urban planning in relation to shopping centres,
to help improve consumers experiences.
While shopping centres are well developed and advanced in Dubai, Abu Dhabi has a
shortage in quality shopping centres. It is, however, likely to see the opening of at least four
shopping centres over the forecast period as economic development and consumer
expenditure are looking promising in Abu Dhabi. Yas Mall and Abu Dhabi Mall are due to
open over the forecast period, which will improve the quality of the shopping experience there.
Luxury retailers tend to have a limited number of outlets and are mainly located in upmarket
shopping centres. The highest concentration of premium brands in Dubai and Abu Dhabi are
in locations including Dubai Mall, Mall of the Emirates, Marina Mall in Abu Dhabi, Wafi and
Burjuman Centre, and Mirdif City Centre.
Shopping centres are the more convenient option for consumers to shop due to their wise
location as well as the extremely hot weather conditions. Furthermore, people in the United
Arab Emirates enjoy shopping as a leisure activity, and browsing in shopping centres is a
continually growing trend in the country. Hence this has affected sales for traditional outlets
over the review period as consumers prefer to shop in centres over stand-alone outlets with
the hassle of the weather, which does not help consumer mobility. Furthermore, traditional
outlets such as boutiques are single retailers rather than chains and have lower footfall than
chains, which have higher distribution coverage across the top shopping centres in the
country.
Table 40
Number of Shopping Centres 2010-2013
Passport
28
Growth
Source:
Passport
2010
2011
2012
2013
10%
15%
15%
15%
Cash and Carry

Cash and carry is insignificant in the United Arab Emirates. Most retailers buy on credit or buy
in bulk due to their strong relations with wholesalers or manufacturers. This is carried out by
well-established hypermarkets and supermarkets in the crockery retailer channel for example.
Furthermore, over the review period the wholesale business began to undergo a shift in
2011to widen their business avenues by adapting more advanced technology that could
reduce overheads to allow wholesalers to offer better prices to smaller retailers and help them
compete against hypermarkets as modern grocery retailers began to take over traditional
channel formats. Hypermarkets usually offer greater price competitiveness due to bulk sales
and economies of scale that smaller-grocers cannot match. As wholesalers uptake better
inventory management systems, they could cut out wastage and offer better pricing which is
expected to help independent small grocers and neighbourhood supermarkets offer wider
product portfolios at more attractive and competitive pricing than they are now.
In regard to the number of cash and carry wholesalers, there is no official data on this;
however, according to trade press there were 350 companies in control of the wholesale
business in the United Arab Emirates in 2011 and Jaleel Wholesale Point is one of the largest
especially in fast-moving consumer goods (fmcg).
As independent small grocers lost out to hypermarkets and supermarkets over the review
period, wholesalers have been trying to introduce new ways to reduce overheads to offer
better prices to smaller retailers. Hypermarkets usually offer greater price competitiveness
due to their bulk sales and economies of scale, which independent small grocers cannot offer
consumers.
Wholesalers have been operating more advanced stocktaking management, storage systems
and delivery services to grocers doorsteps and to restaurants. The use of technology and
barcoding has improved wholesalers stocktaking systems, by helping them monitor their
stock in a much more effective way, aiding them to reduce wastage and losses, and helping
them to clear their goods in time as they have all their products up to date in their systems.
Through this these wholesalers are looking to continue offering better pricing and act as a
hypermarket for small grocers. Jaleel Wholesale Point for example introduced a technology
known as JWPs over the review period, a popular cash and carry concept in European and
US markets, to account for requirements in the Gulf region. It stocks more than 5,000 stockkeeping units in categories, which cover food, non-food, cosmetics, home appliances and
other fmcg.
Thorough this concept, wholesalers are able to offer small grocers a wide range of brands at
more competitive prices to help them compete with modern grocery retailers such as
hypermarkets and supermarkets, as currently consumers go to supermarkets and
hypermarkets when they do not find this wide range in independent small grocers. Despite
this, cash and carry is still a niche in the country as other channel platforms within modern
grocery retailers mainly dominate the market due to their strategic locations, variety of product
offerings and competitive price offerings.
29
DEFINITIONS
This report analyses the market for Retailing in United Arab Emirates.
For the purposes of the study, the market has been defined as follows:
Store-based retailing:
Grocery retailers
Modern grocery retailers
Convenience stores
Discounters
Forecourt retailers: chained forecourt retailers; independent forecourt retailers
Hypermarkets
Supermarkets
Traditional grocery retailers
Independent small grocery retailers
Food/drink/tobacco specialist retailers
Other grocery retailers
Non-grocery retailers
Apparel and footwear specialist retailers
Electronics and appliance specialist retailers
Health and beauty specialist retailers
Chemists/pharmacies
Drugstores/parapharmacies
Beauty specialist retailers
Other healthcare specialist retailers
Home and garden specialist retailers
Furniture and homewares stores
Home improvement and gardening stores
Leisure and personal goods specialist retailers
Jewellery and watch specialist retailers
Media product stores
Pet shops and superstores
Sports goods stores
Stationers/office supply stores
Traditional toys and games stores
Other leisure and personal goods specialist retailers
Mixed retailers
Department stores
Variety stores
Mass merchandisers
Warehouse clubs
Other non-grocery retailers
Non-store retailing:
Vending
Homeshopping
internet retailing
Direct selling
Other terminology:
Eid Al-Fitr Feast of breaking the fast for Muslims
Passport
30
Passport
Eid Al Adha Festive of sacrifice for Muslims
SOURCES
Sources used during research include the following:
Summary 2
Research Sources
Official Sources
Dubai Chamber of Commerce
Trade Associations
Dubai International Finance Centre

Middle East Council of Shopping Centers
Trade Press
Retail News Middle East

The National
Source:
31

Retailing in The United Arab Emirates

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RETAILING IN THE UNITED ARAB

RETAILING IN THE UNITED ARAB EMIRATES

LIST OF CONTENTS AND TABLES

Employment in Retailing 2008-2013........................................................... 11

Market Data ................................................................................................................................ 12

Sales in Retailing by Channel: Value 2008-2013 ....................................... 12

RETAILING IN THE UNITED ARAB EMIRATES

Forecast Sales in Store-Based Retailing by Channel: Value 20132018 ........................................................................................................... 22

Standard Opening Hours by Channel Type 2013....................................... 27

Cash and Carry....................................................................................................................... 29

Research Sources ...................................................................................... 31

RETAILING IN THE UNITED ARAB EMIRATES

RETAILING IN THE UNITED ARAB

Rise in Tourism As Consumer Confidence Picks Up

Non-grocery Retailing Grasps Market Trend Opportunities While

RETAILING IN THE UNITED ARAB EMIRATES

Majid Al Futtaim Hypermarkets Llc Extends Further Lead in the Retailing

A Healthy Performance Is Expected Over the Forecast Period

KEY TRENDS AND DEVELOPMENTS

RETAILING IN THE UNITED ARAB EMIRATES

RETAILING IN THE UNITED ARAB EMIRATES

RETAILING IN THE UNITED ARAB EMIRATES

Internet Retailing Another Booming Channel

RETAILING IN THE UNITED ARAB EMIRATES

RETAILING IN THE UNITED ARAB EMIRATES

More Supermarkets and Convenience Stores Emerge As Demand for

RETAILING IN THE UNITED ARAB EMIRATES

RETAILING IN THE UNITED ARAB EMIRATES

Growing Shopping Centre Developments Lead To More Retail Sales

RETAILING IN THE UNITED ARAB EMIRATES

RETAILING IN THE UNITED ARAB EMIRATES

Employment in Retailing 2008-2013

Total employment ('000

RETAILING IN THE UNITED ARAB EMIRATES

Sales in Retailing by Channel: Value 2008-2013

AED million, retail value rsp excl sales tax

Sales in Retailing by Channel: % Value Growth 2008-2013

% current value growth, retail value rsp excl sales tax

Sales in Store-Based Retailing by Channel: Value 2008-2013

AED million, retail value rsp excl sales tax

Store-Based Retailing Outlets by Channel: Units 2008-2013

RETAILING IN THE UNITED ARAB EMIRATES

Sales in Store-Based Retailing by Channel: % Value Growth 2008-2013

% current value growth, retail value rsp excl sales tax

Store-Based Retailing Outlets by Channel: % Unit Growth 2008-2013

Sales in Non-store Retailing by Channel: Value 2008-2013

AED million, retail value rsp excl sales tax

Sales in Non-store Retailing by Channel: % Value Growth 2008-2013

% current value growth, retail value rsp excl sales tax

RETAILING IN THE UNITED ARAB EMIRATES

Sales in Retailing by Grocery vs Non-Grocery: 2008-2013

% retail value rsp excl sales tax

Non-Grocery Retailers: Value Sales, Outlets and Selling Space 2008-2013

Value sales AED million

Sales in Non-Grocery Retailers by Channel: Value 2008-2013

AED million, retail value rsp excl sales tax

Apparel and Footwear

Non-Grocery Retailers Outlets by Channel: Units 2008-2013

RETAILING IN THE UNITED ARAB EMIRATES

Apparel and Footwear

Sales in Non-Grocery Retailers by Channel: % Value Growth 2008-2013

% current value growth, retail value rsp excl sales tax

Apparel and Footwear Specialist