The emirate is a regional and global destination for shopping.. It has the largest concentration of gold traders in one market globally
Retail trade is a major source of growth and diversification for Dubai's economy
The sector has been leading regionally for years in retail and shopping spaces.
archival
The retail sector has attracted famous international brands with rapid rates of development and growth.
archival
picture
Sectors that built Dubai's economy
The Emirate of Dubai has achieved widespread global fame, making it a global destination for the economy, attracting capital and entrepreneurs from various countries, and becoming a springboard for many billion companies thanks to its advanced infrastructure and flexible legislative environment.
Several sectors have contributed to the growth of the emirate's economy and achieved leaps and bounds in all fields over the past years. Perhaps the most prominent of these sectors are: aviation, tourism, retail, technology, real estate and financial services.
The aviation sector continued to support the growth of Dubai's economy with high rates of passenger flow and linking the emirate to the outside world.
Dubai International Airport is an essential tributary to the emirate's economy, and a major enabling factor in the growth of the country's trade volume in general, and the Emirate of Dubai in particular, with various global markets.
The tourism sector has contributed to the diversification of the emirate's economy, as Dubai has huge tourism potentials and a developed infrastructure that has made it a favorite destination to visit throughout the year.
The retail trade sector is one of the activities that support the growth and diversification of Dubai's economy, as it has contributed to keeping pace with the economic development movement in the emirate.
The real estate sector has also recorded remarkable growth levels during the last period, as Dubai has become a magnet for investors from all over the world.
Dubai real estate witnessed a significant improvement in its investment attractiveness with the high return on investment from leasing it thanks to the stimulating measures.
Officials and experts in the retail trade sector stated that the sector was - and still is - one of the activities that support the growth and diversification of Dubai's economy, pointing out that the sector has actively contributed to keeping pace with the economic development movement in the emirate, and has contributed significantly to the emirate's local economy over the past years.
They pointed out to "Emirates Today" that the sector recorded several standards of excellence with the support of the rational government leadership, which made it the top regionally for years in retail and shopping spaces, in addition to excellence globally in attracting famous international brands, while achieving accelerated rates of development and growth. Noting that the sector's distinction helped it recover quickly from the repercussions of the "Corona" pandemic, compared to many countries of the world.
Various sectors
Dubai was characterized as a global destination for shopping, supported by the momentum of various retail trade fields, which included commercial centers, food and consumer goods outlets, in addition to the gold and jewelry trade, which was historically famous as (the city of gold), and its landmarks developed at high rates, until it included, finally, The largest gathering of gold traders in one market in the world, with the opening of the new extension of the old gold market in Deira.
The wholesale and retail trade sector and the repair of motor vehicles and motorcycles, according to recent data from the Dubai Statistics Center, contribute to the gross domestic product of the Emirate of Dubai, at constant prices for the first quarter of this year, at a rate of about 22.64%.
Shopping sector
In turn, Majid Saif Al Ghurair, Chairman of the Board of Directors of the Dubai Shopping Centers Group and Chairman of the Reef Mall and Burjuman Centers, said, "The shopping and retail sector in Dubai is characterized by many strengths that have supported the development of its sales and its rapid recovery, among many others. From crises, the most prominent and most recent of which is the (Covid-19) pandemic, as it was able to return to growth quickly, compared to many markets,” noting that “the sector is one of the important activities in the local economy of the emirate, which has become a destination for visitors from different countries of the world.” .
He added, "One of the important indicators that shows the extent of the excellence and importance of the shopping sector in Dubai, is that the commercial centers in Dubai have become one of the few cities in the world, attracting a large number of brands in different sectors, most notably fashion and electronics, which made the shopping sector in Dubai at the forefront. , not only regionally, but at global levels, in the inclusion of many famous international brands.”
Diversity and growth
For his part, Director of Marketing Department at the Union Coop, Dr. Suhail Al Bastaki, said, "The retail sector is one of the important economic sectors that support the diversity and growth of Dubai's economy, especially with the distinguished position that Dubai possesses in the shopping and retail sector, both at the regional level. Middle East or globally, in many aspects.”
He added that "many indicators support the excellence of the retail sector and the extent of its positive contributions to the local economy, most notably that the emirate has become a regional center for many brands in the retail sector, for example, in the main retail outlets in Dubai markets, there are many brands The commercial markets that are not found in a number of the region’s markets, with the local markets distinguished by the great diversity of nationalities and categories of consumers from different communities, which constitutes a demand for many products for different brands.”
Al Bastaki explained that "the distinction and strength of the retail sector in Dubai contributed to the sector's rapid recovery from the repercussions of the (Corona) pandemic, compared to many global markets, some of which are still suffering from the effects of the pandemic."
He pointed out that «the sector’s excellence contributed to providing growth and development factors for many institutions operating in the markets, which are expanding and growing in line with the strength of demand in the markets, for example, through its work in the sector, (the cooperative) was able to record remarkable growth rates since its inception until time. Currently, he pointed out that “(the cooperative) had only two branches during 1984 and expanded until it now has 24 branches and four commercial centers, while the number of its shareholders grew from 315 shareholders during 1984 until it reached at the beginning of July to about 37,000 shareholders.”
Diversity boost
For his part, the official spokesman for the "Aswaaq Group" centers, affiliated with the "Government Investment Corporation of Dubai", Abdul Hamid Al Khashabi, said that "the retail sector is one of the important tributaries that enhance the diversification and growth of Dubai's economy for years," noting that "the growth of the sector's contribution to supporting the economy The locality of the emirate came in accordance with the policies of the wise leadership, with the development of infrastructure, in a way that made Dubai distinguished not only regionally, but at global levels, as a destination for shopping.
He added that "the great growth in the retail sector and its regional and global excellence contributed to enhancing growth opportunities for many entities operating in the sector," noting that "the (markets) outlets, for example, started during 2008 and their business developed to reach, finally, when It exceeds 20 branches, in addition to 11 commercial centers in various regions of Dubai.”
local economy
In the same context, Ibrahim Al Bahr, an expert in retail affairs and head of “Al Bahar Consulting” company, said that “the retail trade sector in Dubai has been one of the supportive activities over the past years, for the diversification and growth of the local economy, with the sector’s excellence in great diversity and infrastructure development, and shares Its attractiveness to more foreign investments from different countries of the world, especially in light of the great diversity of the communities living in Dubai.”
He explained that «the shopping and retail sector is not considered a separate tributary in the local economy of Dubai, but it is supportive of other sectors that support and support the local economy. For other tourist attractions, Dubai has become a global destination for shopping and tourism,” adding that “the retail sector in Dubai is characterized by many expansion opportunities, with the growth of consumer demand and the popularity of tourism activity in various circumstances, which in turn raised the manifestations of competition in the market between different entities, Especially with the growing role of e-commerce institutions, which enhanced the sector’s activity and recorded significant growth by supporting the effects of the (Corona) pandemic.”
He added, “One of the most prominent indicators that illustrate the extent of the development and strength of the retail trade sector is its resilience in the face of the effects of the pandemic, whether in terms of the abundance of goods and products, or even in relation to the price stability of many commodities, compared to severe effects and a great shortage of goods that many markets in various countries have been exposed to. Countries of the world".
Consumer spending
A report by "Majid Al Futtaim", on "The State of the Retail Economy in the UAE", showed a total increase in consumer spending, by 22%, during the period from January to June 2022, compared to the same period last year, driven by the increase in spending in retail stores. Retail by 16%, and by 31% in other sectors outside the retail sector.
The report also showed the growth of shopping in "hypermarkets" and "supermarkets", which rose by 12% in the first half of this year, compared to the first six months of last year.
The most important service activity
Data from the Department of Economy and Tourism in Dubai stated, in a report, that wholesale and retail trade is the most important activity in the service sector in Dubai, and that in 2018, the added value of this trade represented 26.4% of GDP (at constant prices).
She pointed out that the wholesale and retail sector has developed over the years, as a result of several factors, such as the establishment of a modern and solid infrastructure, effective distribution channels for neighboring emirates, rapid urbanization and tourism, as Dubai ranks first on the list of cities in the world as a shopping destination.
Leasing Spaces
A report by the Dubai Chamber of Commerce showed that, according to an analysis by JLL, Dubai witnessed in 2020 the completion of 110,000 square meters of the total space for rent in the retail sector, raising the total retail rental space in the emirate to more than 4.2 million square meters. .
The Chamber’s report indicated that retail sales in the UAE are expected to maintain an annual growth rate of 6.6% over the medium term, to reach $70.5 billion (AED 260 billion) by 2025, with an expected growth of retail sales at a compound annual growth rate of 5.7%. And with expectations that it will also be accompanied by the growth of retail, outside of stores at a compound annual growth rate of 14.8%.
Its fame in the yellow metal trade extends throughout history
40 %
of the world's gold reserves pass through Dubai every year
The Chairman of the Board of Directors of the Dubai Gold and Jewelery Group, Tawheed Abdullah, said that "the gold trade sector in Dubai is characterized by being an important tributary of the local economy, by relying on the historical roots of the gold trade through Dubai, which made it famous over the years as (Dubai, the city of gold)."
He added that "the gold trade in Dubai has witnessed several developments during the past years, until it reached its latest developments with the opening of the new extension of the old gold market in the Deira area," noting that "the new extension project made the gold market area in Dubai as the largest gathering in the world, It includes gold and jewelry companies, so the market - which was previously about 400 square meters only - turned into a huge trading center for the gold industry, more than two kilometers wide and three kilometers long.
gold products
Abdullah explained that «the gold trade in Dubai is characterized by many characteristics at the regional and global levels, the most prominent of which is the great diversity of gold and jewelry products offered in the various markets of the emirate, in line with the tastes of the different communities living in the country, in addition to the reputation of Dubai as a destination for gold trade. Whether for consumers or even for companies and merchants from different countries of the region and the world, which increases the interest of companies operating in the sector in Dubai, to attract different models and products.
There are more than 10 million designs present in the gold market, meeting all the requirements of consumers,” noting that “the gold trade in Dubai is also characterized by low prices, fees and taxes, compared to many countries of the world, with high quality and its guarantee by virtue of strong legislation that regulates markets, This makes tourists and visitors prefer to buy handicrafts from Dubai.”
Inventory
Abdullah explained that "between 20 and 40% of the gold stock in the world passes through Dubai every year, with the emirate's distinguished geographical location, and the availability of elements that supported Dubai as an important center for trade and re-export of gold products, especially with the availability of gold safes and jewelry-making facilities." .
He pointed out that "there are more than 800 merchants currently practicing their trade in the gold markets in Dubai, while between 40 and 50 tons of gold are available in the local markets, either in the front of retail stores or in wholesale stores."
He stated that "gold represents 20% of the total non-oil exports to the UAE, while the number of workers in the precious metals, diamonds and jewelry sector is estimated at nearly 65,000 people in the country."
long history
The gold trade began in Dubai a long time ago, starting from its status as a major trading port in the 18th century, as its connection to gold is legendary, since it was the city of pearling until it became a leading regional and global trading center.
According to data from the Dubai Gold and Jewelery Group, the famous gold market in Dubai, one of the largest retail and wholesale markets for jewelry in the world, began in the 20th century with a small number of traders, and grew significantly in the following decades, while Dubai manufactures and imports hundreds of tons of gold and jewelry annually , which made Dubai a regional center, and one of the largest centers of jewelry trade in the Middle East.
The UAE in general accounts for 11% of global gold exports, as it was ranked among the first four countries at the international level, above Hong Kong and the United States of America, while Dubai accounts for an estimated 80%, according to some data, of the total jewelry and gold trade in the UAE.
Tawhid Abdullah:
• “The emirate has been known over the years as (Dubai, the city of gold).”
The gold trade sector in Dubai is an important source of the local economy.
archival
Follow our latest local and sports news and the latest political and economic developments via Google news