Dubai's Chamber of Commerce and Industry (DCCI) announced that retail clothing sales in the UAE have registered a cumulative annual growth rate of 4.8% in 2018 compared to 1.8% in 2017.

A recent analysis by Dubai Chamber of Commerce (Euronitor International) showed that the total value of clothing sales in the UAE reached $ 12.3 billion (Dh45.2 billion) in 2018, with the sector expected to maintain strong performance over the period 2019 to 2023.

Men's Clothing

Men's clothing was the largest segment of retail sales, accounting for 53% of total sales and an annual growth rate of 4.7% in 2018 compared to 1.6% in 2017.

The men's clothing segment is expected to grow by a cumulative annual growth rate of 3.8% over the period 2019-2023 to reach US $ 7.8 billion (AED 28.6 billion) in 2023 compared to US $ 6.2 billion (AED 22.8 billion) in 2018.

The analysis highlighted clothing as a key category within the retail sector in the UAE. Over the last decade, Dubai has attracted millions of shoppers from around the world and has been recognized as a gateway to international fashion brands seeking to establish a foothold in the Middle East and North Africa Africa.

Women's clothing

The analysis showed that women's clothing accounted for the second largest segment with 34% of the sector, with an annual growth rate of 5.1% in 2018 compared to 2% in 2017. The analysis predicted that this segment will experience a cumulative annual growth rate of 4.9% 2023), with sales reaching 5.2 billion dollars (19 billion dirhams) in 2023.

The analysis also showed a steady movement in women's clothing stores in 2018, anticipating the continuation of world-renowned brands in leading women's clothing sales.

Islamic fashion

According to the analysis, well-known Islamic fashion is a key driver of this segment in the UAE. Since 2015, in conjunction with Dubai's announcement as the capital of the Islamic economy, the emirate has hosted a range of shops specializing in Islamic fashion, The world's leading fashion retailer, as well as fashion outlets for world renowned designers. The analysis indicates that there are strong indications that this trend will continue in the future.

Children's clothing

The analysis showed that children's clothing sales accounted for 7% of total retail sales of clothing in the UAE market during 2018. This segment recorded an annual growth rate of 5% in 2018 and is expected to achieve a cumulative annual growth rate of 3.7% over the forecast period (2019) (AED 3.67 billion) by 2023 compared to AED 866 million (AED 3.18 billion) in 2018. The analysis described the children's clothing segment as highly competitive and the most important reason for its quality and reasonable prices.

Clothing accessories recorded the largest segment of growth by 5%, while the fifth category was "socks" category with a growth of 1%.

Clothing outside stores

According to the analysis, the share of out-of-shop clothing, especially online, has increased significantly from 0.9% in 2013 to 3.7% in 2018, reflecting a decline in traditional distribution through stores, Spread digital devices and increase the number of Internet callers.

• 5.1% annual growth rate of women's clothing in 2018.

Gradual growth driven by improved economic conditions

Dubai Chamber's analysis concluded that retail trade in the UAE will continue to grow gradually over the next few years, driven by improved economic conditions and increased consumer confidence.

Retail sales are likely to perform well in terms of growth, he said, noting that despite the dominance of retail sales across stores, online sales are growing strongly.

The analysis predicts that this will lead to increased competitiveness in this area as retailers are likely to offer discounts on their products as shoppers compare online prices with prices in stores.