Growth of UAE Based Hypermarkets Across Malaysia

by Zaara 03, Jan 2020

The recent analysis has said, the UAE will be in a very high stage of growth in the near 2020. The sales volume has accelerated from the last few years, which is leading to a rise in the market size. UAE has not only grown its retail business in the food industry but also in the non-food sectors and is expected to take a tremendous vertical extent until 2020. The market covers all the opportunities which include direct selling, e-commerce business, online payments, usage of plastic card, safe and secure commercial environment.

If we talk about the non-retail segment in the UAE such as colour cosmetic products, hair care and perfume market, footwear and clothing market have shown immense conduct and is believed to hike at a CAGR (Compound Annual Growth Rate) of approximately 11% through 2016-2020.

UAE Allying with Malaysia

The UAE has strengthened relations with Southeast Asian Countries. Among the GCC (Gulf Cooperation Council) countries, the UAE has partnered with Malaysia's most significant trading sector and has generated a high amount of trade exchange which got established at Dh15.4 billion in 2016. The investments of Malaysia in the UAE at the same time is equal to Dh8.7 billion. The partnership among the countries has been recognized by Al Mansouri in Dubai Expo 2020, constituting of great opportunities economically and commercially all over the world.

MATRADE (The Malaysia Trade Development Corporation) has a vision of promoting Malaysia's trading and industry internationally, where the UAE is functioning as Malaysia's extensive trade partner in the West Asia region.

The Major Exports Include

  • furniture
  • computer parts
  • building materials
  • electronic goods
  • jewellery
  • vegetable
  • oil

Extension of the UAE-based Companies in Malaysia

LuLu Hypermarket is a UAE-based division of LuLu Group International which has taken a tremendous growth in the retail industry. The company has spread out its store in the Malaysian capital of Kuala Lumpur and has planned to spread four more superstores covering Malaysia by the end of 2020.

Employment Creation

Malaysia's economic strength, investor-friendly perspective, humanistic policies and chief infrastructure is enough for a business to succeed. LuLu Group has employed 35,000 people across nations and is focusing on creating 5,000 job opportunities in Malaysia. 

Procedure to Start a Grocery Retail Business in the UAE

The UAE has been a hub of starting businesses. To start a business in the UAE, you need to have a look through different policies and licenses that are required.

  • The starting point is to know and understand your business correctly so that you know the further process to take things forward.
  • The second level is to segment your market and choose a location. Experts say that your site can make or break your business. The business should be accessible to the market you are segmenting.
  • The third level is to find a local partner, which include the companies who own part of shares of your business.
  • The fourth level is to stabilize the amount of money that you're investing in. Your business should be registered at the Ministry of Commerce, which shall include a proof that shows that you are financially sound for setting up a business.

The Requirements to Achieve a Successful Business in the UAE

To get into a successful track of business, there are a few steps that one shall go through before taking necessary measures.

  • Get a local sponsor to start a retail store. Your requirement includes finding an appropriate local partner who would be getting the majority of interest in your business.
  • Having a commercial license is the most crucial step to start a retail business in the UAE. Relevant documents have to be submitted to the Department of Economic Development and the UAE Federal Ministry of Economy.
  • A proper understanding of the jurisdiction where you think your store's location will be successful. Any grocery store in the UAE is looked upon the authority and need to follow a proper structure of the shareholding.
  • Systematic rules which guide in maintaining paperwork and PRO Services shall be followed in terms of achieving approval from several departments, visas and permissions from different entities and the jurisdiction.

You should follow the rules and regulations strictly, so that you get an easy access to the license and starting a grocery retail business in the UAE. The strong point to be noted here is that your decision-making process must be secured enough to be accepted by the market that you are targeting. Particularly in the retail sector, the UAE has a fantastic position as the most preferred destination for shopping, nationally and internationally.

If you are focused on opening a self-owned business or a hypermarket in the UAE, no matter if you're new or old to industry, we have a bunch of experts having 13 years of experience at Commitbiz who can help you anytime step by step professionally. You can easily contact us and know about our exceptional services at setting up a business.


1. How many Lulu branches were opened in 2021?

They opened four branches in Kuala Lumpur, Selangor, and Johor.

2. What is the recent performance of the retail business in the UAE?

The country’s retail sector ranked 14th in Kearney’s Global Retail Development Index in 2021.

3. What is the future estimation regarding the UAE retail sales?

The Dubai Chamber of Commerce and Industry predicted that the sales would grow by 6.6% annually which would reach AED 258 billion by 2025.

4. What permission is required to get a shop for lease?

You must obtain approval from the municipality and other associated organizations.

5. Are PRO services required to start a retail business?