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Overall spending in the UAE rose 22% between January and June 2022 (the first half) compared to the same period last year, driven by a 16% increase in retail spending and a 31% increase in the non-retail sector, a report said.
The latest report on the state of the UAE retail economy, released by Majid Al Futtaim, a leading mall and leisure pioneer in the Middle East, Africa and Asia, shows signs of optimism that the economy will continue to rebound.
In the first half of 2022, comprehensive retail categories will increase by 15% compared with the same period in 2021, contributing 44% to the overall retail economic growth. Spending on food and beverages (15%), hotels (14%), and pharmacies and health (14%) increased.
According to an analysis of Majid Al Futtaim’s point-of-sale transactions, while price increases have not dampened consumer spending, they have affected how people buy and spend. Spending on fashion accessories and watch jewelry rose 20% in the second quarter compared to the first three months of the year, driven by seasonal discounts and Ramadan sales.
In fact, as spending across the retail industry continues to grow, so does brick-and-mortar and online shopping. The research further shows that omnichannel shopping remains the preferred method of purchase for consumers, with e-commerce spending up 41% in the first half of this year compared to the same period in 2021, and online sales now accounting for 11% of the overall retail economy. Perhaps unsurprisingly, apparel And fashion topped the omnichannel list, with 54% of shoppers saying they would buy items in this category both online and offline, while 54% also said they would prefer to go to a brick-and-mortar store for groceries.
The hypermarket and supermarket sector also saw growth, with a 12% increase in the first half over the first six months of 2021. However, consumer purchases have shifted towards lower value and higher frequency, with average transaction value down 12% compared to the first half of 2021. first half of 2021.
Alain Bejjani, Chief Executive Officer of Majid Al Futtaim – Holding, said: “The UAE continued to show sustainable growth in the first six months of the year, a testament to the inherent resilience of its economy. Despite mounting global headwinds, the UAE’s retail economy conditions in the second quarter The reported data confirmed a sustained, steady rebound.
“The UAE retail economy looks set to continue on a positive trajectory, supported by government-driven diversification initiatives focused on strengthening the non-oil economy, boosting productivity and creating an optimal environment for foreign investment. While the country is not immune to more Widespread macroeconomic challenges and inflationary pressures, but the underlying strength and stability of its foundations provide fertile ground for sustained economic growth.”
Dubai’s property market is also returning with enthusiasm, with property sales up 60% in the first half of the year compared to the same period in 2021, with over 43,000 transactions.
However, rising prices are becoming a concern for UAE residents, with a recent poll by Majid Al Futtaim’s Happiness Lab showing that 70% of respondents were concerned about rising real estate and rents, with the majority saying they had not changed planned residence for the next 12 months.
Finally, despite the global economic slowdown, regular international business travel in the UAE continues to increase as tourists return and spend more in the country, as evidenced by increased tourist spending in the first half of the year, with average spending per card increasing by 34% compared to 2019 compared to the previous six months. Data from the Majid Al Futtaim Happiness Lab also reports that 72% of the UAE population plans to travel at least once this year. – arab trade news agency
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