29 August, 2021
UAE Economic Recovery Boosts Consumer Confidence
The UAE retail economy is experiencing a surge in confidence, as measured across different parameters by Majid Al Futtaim in their State of the UAE Retail Economy Report 2021.
State of the UAE Retail Economy report key findings:
- More than half of UAE residents believe there will be a strong economic rebound from the pandemic
- Digitization in retail has accelerated, with the UAE leading the most advanced e-commerce market in the Middle East
- A quarter of the country’s electronic sales, up to 9% of fashion purchases, and up to 8% of grocery sales now take place online in the UAE
- Q4 of 2020 and Q1 of 2021 showed solid signs of recovery as consumer confidence returned and UAE resident spending increased by almost a fifth (17%) from February to March 2021
Majid Al Futtaim, the leading shopping mall, communities, retail and leisure pioneer across the Middle East, Africa and Asia, recently launched the first in a series of quarterly updates uncovering key data, trends and insights into consumers’ behaviour patterns, spending habits and sentiment in the UAE.
The report series – State of the UAE Retail Economy – tracks the progress of the retail economy, with the first edition revealing optimism that retail in the emirates will recover strongly in 2021.
Despite the challenges of the global pandemic, the report demonstrates that consumer business in the UAE has proved resilient, dropping by 12% compared to the 22% decline seen by the wider economy. It also highlights the developing role played by e-commerce in retail’s response to COVID19.
The data, which combines sales transactions and footfall in malls, shows that in the UAE, ecommerce has increased to double its 2019 level, and by February 2021, e-commerce spend had increased by 30% year-on-year. It is estimated that around a quarter of the country’s electronic sales, between 7% and 9% of fashion purchases, and up to 8% of grocery sales now happen online.
The report indicates clear signs of optimism returning to the local consumer market, and the UAE is predicted to have the fastest growth within the GCC this year. Despite the lingering effects of the pandemic, the report highlights that UAE residents are gaining confidence when it comes to spending. Majid Al Futtaim’s data reports an increase of 17% in consumer spending from February to March 2021, and retail sales in malls showed an increase of 10% year-on-year in March 2021.
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Source : Khaleej Times