Retail & Manufacturing
UAE Records Positive Economic & Commercial Activities – 2021
UAE has started seeing positive signs of economic recovery from May 2021 onwards recording a strong growth since the start of the pandemic. It has also recorded a solid recovery of key sectors that support the national economy. Some of the key sectors are expected to witness growing demand in the forthcoming months. Statistics from the Federal Competitiveness and Statistics Centre (FCSC) reported increases in price indexes covering seven major sectors that constitute the UAE’s Consumer Price Index (CPI). The CPI for the culture and entertainment sector led this category with its index points rising to 106.36 (CPI) in May 2021, compared to 103.68 (CPI) in April 2021.
UAE Key Sector Growth
The Clothing and Footwear segment within the UAEs retail sector recorded the second-largest growth in CPI to 115.02 points in May compared to 114.03 points during the same reporting period in April 2021. Similarly, the food and beverage segment recorded 107.57 (CPI) in May compared to 106.82 (CPI) in April (2021). The other goods and services sector rose to 115.75 (CPI) from 114.77 (CPI) for the same time period.
The Hotel, Restaurants & Catering (HORECA) segment within the Food Sector raised to 115.85 (CPI) in May 2021 from 115.09 (CPI) in April 2021 while the Healthcare sector increased to 106.31 (CPI) from 106.17 (CPI) and the Transport & Services sector reached 110.80 (CPI), from 110.33 (CPI).
Real Estate Sector Growth
The Dubai property market has started gaining momentum and has seen significant growth over the past few months. A total of 2,020 real estate and properties transactions were valued at AED 4.5 billion (USD 1.25 billion) in total during the first week of May 2021, according to a report published by Dubai Land Department (DLD). The DLD weekly report mentioned that among the 2,020 properties that were sold, 119 were plots with a total value estimated at AED 845 million (USD 230 million), while 1,321 were apartments and villas which were sold for AED 2.25 billion (USD 600 million).
Investment Opportunities in UAE & Dubai
The Dubai government has implemented stringent preventive measures and accelerated the vaccination rate to increase the recovery from the Covid-19 pandemic. The recovery plan that focuses on Dubai’s success in combating the Covid-19 pandemic and starting the recovery phase in record time showcased the government’s commitment towards providing the best environment in the world, reinforcing Dubai’s competitiveness as a global destination for investment over the next 20 years. It will also enhance Dubai’s investment appeal and attract fresh investments into all sectors. The FDI (Foreign Direct Investors) are also actively investing in the retail and real estate sectors, reflecting the investors’ confidence in the government’s commitment to provide an effective environment for the businesses to grow. With the upcoming EXPO 2020 in October this year, Dubai is expected to be a major investment destination in the Post Covid-19 situation.
Research Konnection assists local and international companies to set up or expand businesses in Dubai, Abu Dhabi and UAE. It is one of the best-rated market research companies in Dubai specializing in Market Research, Market Entry & Feasibility Studies. Feel free to reach out to us at firstname.lastname@example.org…July 12, 2021
The Impact of Millennials on UAE’s Fashion Industry
The revenue from the United Arab Emirate’s (UAE) fashion industry was estimated at AED 4.3 billion (USD 1.2 billion) in 2019. The values were expected to reach AED 5.3 billion (USD1.45 billion) in 2020. However, the COVID-19 pandemic has led to a decline in sales of most in-store retailers by nearly 50%. Consequently, e-Commerce has taken the center stage in UAE with the most significant consumers that contributed towards the growth of the fashion industry were millennials (29.2%).
As a result, many fashion retailers in the UAE are becoming digitalized due to the increased demand from the millennial consumers. According to estimates, UAE millennials on average spend between 4.5-6.5 hours browsing social media and over 51% of them make their purchases online. NAMSHI, AWOK, NOON, Brands For Less and 6th Street are some of the most popular fashion e-Commerce retailers in the country.
In an increasingly emerging trend, it has been witnessed that millennials prefer online shopping as it is convenient, easy and affordable compared to in-store shopping. Also, due to access to smartphones and WiFi, over 60% of millennials in the UAE research, read reviews, compare prices before purchasing a product.
Moreover, businesses also understand the importance of social media influencers and their role in influencing purchase decisions of millennials. For instance, 63% of millennial consumers are more likely to buy a product which has been recommended by a social media influencer. Huda Kattan, Joelle Mardinian and Ola Alfares are some of the popular social media influencers in the UAE.
In addition to technological advancements, millennials also expect a personalized experience from fashion brands. Recently, luxury fashion marketers have evolved their marketing strategy as they understand that millennials are no longer interested in the brand name alone but also consider the consumer experience provided by brands.
Furthermore, due to the rising awareness of the environment, many millennials expect brands to be sustainable. Therefore, there is a spurt in the growth of sustainable brands in the UAE such as ATTUALE, The Luxury Closet but also fast-fashion retailers like H&M and Zara have become more sustainable. Overall, the millennial consumers are shaping the UAE’s fashion industry to become digitized, sustainable and also leverage e-Commerce platforms to effectively reach out to the target audience in UAE as they realize that online presence is key for success and growth in UAE.
Research Konnection is a market research company in Dubai that assists local and international companies to set up or expand businesses in Dubai, Abu Dhabi and UAE. At Research Konnection, we specialize in Market Research, Feasibility Studies and Business Plan Developments. Feel free to reach out to us on email@example.com…August 20, 2020
Dubai to build Commercity to promote e-Commerce Industry
Dubai – The government of Dubai has announced to build the first of its kind free trade zone dedicated for the e-Commerce industry in the region ‘Dubai Commercity’, located close to Dubai International Airport. The estimated value for the project is around AED 3.2 billion ($870 million) and covers an area of 2.1 million Sq.ft. The ‘Dubai Commercity’ aims to promote investment in the e-Commerce Industry by providing numerous benefits and exemptions to the e-Commerce players.
e-Commerce Industry – UAE
Driven by the strong growth in online shoppers, the UAE’s e-Commerce Industry leads the Gulf region with an estimated value of Dh 59 billion ($16 billion) in 2019 and CAGR of 13 per cent between the next few years. However, due to the COVID-19 pandemic which has influenced the online shopping behavior, the e-Commerce growth rate is likely to increase significantly as more number of consumers opt to buy products and services online.
e-Commerce Industry Growth – UAE
The young Internet-savvy population with high social media usage, high disposable income and the growth in Dubai’s mobile wallet market are among the key contributing factors towards the growth of the e-Commerce marketplace in the country. As of 2019 and before the COVID-19 pandemic, 62 per cent of UAE residents were actively engaged in online shopping while e-Commerce sales constituted 10 per cent of total sales in UAE.
Furthermore, the Dubai government has introduced several strategies to attract foreign investors in the e-Commerce Industry. One of such Strategies is the announcement of Dubai Commercity, a dedicated free-zone for the e-commerce Industry.
The Dubai Commercity is considered to be the first of its kind in the region. The site is a joint venture between Dubai Airport Freezone Authority (DAFZA) and Al Wasl Properties. The Dubai Commercity will have three major clusters namely; Business, Logistics and Social Cluster.
The Business cluster will accommodate 12 office buildings that promise modern facilities and sustainable design for companies of varying size while the Logistics cluster will consist of heavily automated AI (Artificial Intelligence) warehouses and storage facilities. The Social cluster will consist of restaurants and cafes. The e-Commerce businesses that will be registered with the free-zone will benefit from “one-stop shop” services inclusive of immigration, administration, banking and healthcare. The facilities are expected to be operational in November 2020, while the project will be fully functional by the end of 2023.
Dubai Commercity – Future Potential
The developers mentioned that the situation arising from the COVID-19 has been one of the major factors that has led to the conceptualization of Commercity in Dubai. The on-going Coronavirus pandemic is expected to further fuel the growth of the industry and the investment in the e-Commerce industry will pay off as the Dubai and UAE market is set for explosive growth amid rapidly changing online consumer buying landscape.
Research Konnection is one of the leading market research companies in Dubai that assists local and international companies to set up or expand businesses in Dubai, Abu Dhabi and UAE. At Research Konnection, we specialize in Market Research, Feasibility Studies and Business Plan Development. Feel free to reach out to us on firstname.lastname@example.org…May 27, 2020
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