Majid Al Futtaim, Dubai based retail giant with operations spread across the Middle East and North Africa, has revealed a $102m major plan to revamp its first flagship City centre Deira mall in Dubai.
City Centre Deira mall is located in the older part of the Dubai city at the crossroad between Sharjah, Bur Dubai and the Airport. The mall is one of the hottest shopping destinations for locals and tourists alike. It is a place with a multitude of options for shopping, food and entertainment. The tenants include stores of international designer brands along with various electronics stores, cosmetic brands, retail and jewellery stores. It also has large number of restaurants and a large food court. Since its last expansion, it includes a multiplex run by Vox cinemas and hotel managed by Aloft group.
The new redevelopment project is scheduled to complete in the first half of the year 2020 as per the company statement. Upon completion of the revamp, the mall shall have 25 new homeware and fashion brand stores and 20 F&B concept stores and homegrown restaurants added to its already significant list of tenants. As per the plan, few of the current stores will be relocated and receive a facelift.
The transformation project is a result of customers’ changing habits and preferences. The aim of the project is to develop a feel-good factor with tailored, convenient and multisensory experience communal space for customers, informed Fuad Mansoor Sharaf, managing director for Majid Al Futtaim Properties, Shopping Malls (UAE, Bahrain & Oman).
Mr Sharaf further added that as part of this change, they are excited to introduce the food hall concept, which will be the first such dynamic Food Hub in Majid Al Futtaim portfolio. They expect this space to turn into the focal point of social activities for families and millennials looking for an experiential dining experience that is delicious, authentic and handcrafted.
Due to the growing population of Dubai by the arrival of many foreigners who settle into different jobs with good pay scales and substantial savings, there is always a growing demand and plenty of opportunities to start a business in the retail sector. Considering Dubai as a tourism destination, the tourism industry is expanding swiftly due to increase of tourists, especially from Asia and African continents and the strategic location of Dubai, which is already an established transit hub for international air travels across continents. As informed, many retailers and property developers are expanding their operations rapidly to provide a variety of choices to its diverse expatriate population and the ever-increasing tourists. Also, with the upcoming World Expo 2020 in Dubai, there will be many more opportunities to benefit the retail sector.
Shopping Malls of the UAE
Dubai is considered as a ‘Queen of malls’ and one of the essential markets in the world. Dubai Mall is one of the largest malls in the world based on the total area. There are over 60 malls which are operational in Dubai alone, and many more are under construction. There are many malls in the UAE with thousands of square feet of space to offer for potential retailers.
Due to the changing demography of Emirates and increasing population, many new retailers have already started setting up business operations in Dubai or in the process of acquiring a foothold in the UAE. The high spending power of the residents of the UAE and the availability of different choices have increased the expectations to exploit further options and experiences. The fashion market has undergone a radical change over the past few decades. Dubai is known as the fashion capital in the Middle East and has become the destination for branded retail and design. Items are cost-effective in this region because the UAE has been the marketplace or supplier base for East Africa and the European region, low/no tax also adds to the benefit of the retailers. Due to these tax-friendly policies of the Government, electronic items and other goods like gold jewellery are available at cheaper prices in UAE.
Shopping Festivals of the UAE
Dubai is one of the most popular tourist destinations worldwide. Its airport is one of the busiest airports and a major transit hub for international travellers. This advantage has resulted in a higher inflow of tourists to Dubai and other Emirates in the UAE. The Dubai shopping festival is a month-long annual event with best offers in shopping goods, fireworks shows and a lot of prizes. It started in 1996 with just a few malls has now expanded to include more than 70+ shopping malls and 6000+ shopping outlets. It is now known as a paradise for shopaholics all around the world. The shopping festival is usually organised in Jan- Feb and boasts an average of 4.4 million visitors with total spending of DH 15 billion. Dubai also hosts a variety of shopping festivals the whole year, which makes it an evergreen shopping hub which attracts shopaholics worldwide.
The retailers with a presence in the UAE will always benefit from the tax-friendly policies of the Emirates’ Governments. They will also benefit from the increasing number of tourists and year-round shopping festivals to increase sales. If you plan to set up a retail business in Dubai, our experts at Commitbiz are there to help you. For any query on the same or in other related services do contact us. We would be happy to help.