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By
Fibre2Fashion
Published
Apr 6, 2017
Reading time
2 minutes
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Apparel has largest share in UAE's retail sector

By
Fibre2Fashion
Published
Apr 6, 2017

Dubai's apparel and footwear market, valued at $11.5 billion in 2016, accounted for the largest share of the Emirate's retail sector, according to an analysis. Apparel leads the category with 73 per cent market share. Demand within this segment was supported last year by value offerings by retailers, particularly during shopping festivals and sales events.



The analysis has been released by the Dubai Chamber of Commerce and Industry at the ongoing 11th World Retail Congress. It has brought together 1,500 attendees, including 150 industry leaders and experts, to discuss key trends impacting the global retail sector.

The analysis found that apparel leads the category with 73 per cent market share, followed by footwear (18 per cent), and sportswear (9 per cent). Demand within this segment was supported last year by value and mid-range offerings by retailers, particularly during shopping festivals and sales events. This trend is expected to continue through 2021, leading the category to achieve a projected compound annual growth rate (CAGR) of 3.4 per cent in the medium term.

Hamad Buamim, president and CEO, Dubai Chamber, said the analysis highlights the underlying strength of Dubai's retail sector, as well as the key trends that will fuel future growth within the market.

"The easing of UAE visa regulations to some countries is expected to drive tourism, which will likely have a positive impact on the Dubai's retail market going forward as the Emirate prepares to attract up to 20 million tourists annually by 2020," added Buamim.

Buamim explained that this trend will likely result in a change to the demographics and characteristics of visitors, and added that retailers in the Emirate will need to adjust and expand their offerings to cater to diverse consumer groups.

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