DUBAI RETAIL SECTOR HEALTHY – EMAAR MALLS PROFITS INCREASE
- February 8, 2016
- Posted by: RKonnect
- Category: Retail & Manufacturing
Dubai’s retail sector has seen stable growth on the backdrop of sustained tourists arrivals as Emaar Malls Group that owns Dubai Mall (the largest shopping mall in the world) posted AED 435 million profit for the fourth quarter of 2015, up by 5.5% compared to 2014.
Emaar Malls Group oversaw a total of 124 million visitors in 2015, a 9% increase from 2014 out which 80 million people visited the Dubai Mall alone, the highest by any shopping mall in the world. Moreover,Emaar Malls Group posted an AED 1.65 billion profit for 2015, up by 23% compared to 2014 as its occupancy across the assets, which includes The Dubai Mall, reached 96% in 2015 whereas the rental renewal rate increased by 25%.
According to Mohammad Alabbar, the Chairman of Emaar Malls and Emaar Properties, Emaar Malls Group has shown robust performance across all mall assets underlining the commitment to sustained value creation for its stakeholders.
New Iconic Tower Approved in Dubai Creek Area
Earlier this week, H.H. Sheikh Mohammed bin Rashid, the Ruler of Dubai and the Vice President and Prime Minister of UAE approved a new observation tower that will be built by Emaar Properties in the Dubai Creek Area. Spanish architect Santiago Calatrava’s design was approved that captured the essence of modern Islamic architecture. The tower as described by H.H. Sheikh Mohammed, is an architectural wonder similar to Burj Khalifa and the Eiffel Tower.
Though the name of the tower is not decided yet but it is already considered as a cultural and tourist landmark that will bolster tourism, hospitality and retail sectors of Dubai. The tower will be linked to a central island district within the Dubai Creek Harbour and offer number of commercial and residential buildings, retail and entertainment units around a 4.5km creek boardwalk.
Retail Sector Growth
Emaar Mall Group’s performance is a testament of how Dubai’s retail sector is attractive for investment. Being a significant contributor towards Emirate’s GDP, Dubai’s retail sector offers some of the most affluent consumers in the world, it will continue to progress at a reasonable rate,replacing Paris as the third most popular and must-visit tourist destination in the world by 2018. The tilt of the many developments is towards the high-end fashion retail, which could be correlated to rise in luxury tourism in the Emirate.
With Dubai government striving to enhance tourism growth in line with the Dubai Tourism Vision 2020, performance of groups like Emaar Mall will make a huge impact on the economy of Dubai by encouraging existing and new business to invest in retail, tourism and hospitality sectors of Dubai and UAE.
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