Witnessing 5.5 percent annual growth in apparel and footwear over the last half decade, Dubai’s Chamber of Commerce reported during a recent World Retail Congress that the $12.8 billion market continues to make strides.
“Growing economic prosperity, steady population growth and rising incomes are driving sales in major retail segments of Dubai,” Hamad Buamim, Dubai Chamber president and CEO, said. “Dubai Chamber’s sectoral report highlights the vibrancy of Dubai’s retailing industry and its contribution to the overall economy. The report represents Dubai Chamber’s commitment to supporting the development of businesses and our efforts to promote Dubai as an international business hub.”
Dubai, for which the chamber forecasts apparel and footwear sales to the tune of $13.5 billion in 2016, enjoys a reputation for high-end luxury brands; but the chamber noted that mid-priced labels are coming into their own, possibly due to thrifty tourists who want to optimize their vacation budgets. Additionally, global brands are catching on as their manufacturers observe and adapt to regional tastes.
Within the broad apparel category, clothing is expected to exceed $14 billion by 2020, while the subcategories of footwear and sportswear are predicted to reach $3 billion and $1.3 billion, respectively.
Dubai Chamber figures indicate that consumer electronics, appliances and personal care products are also expected to maintain robust growth, along with personal accessories and home and garden items. Electronics, in particular, are seeing a trend towards smaller and increasingly multifunctional devices, especially those delivering internet connectivity.