UAE Retail Market Size is Expected to Reach USD 227.1 Billion By 2033 | CAGR: 5.1%

UAE Retail Market Overview

Market Size in 2024: USD 145.3 Billion

Market Size in 2033: USD 227.1 Billion

Market Growth Rate 2025-2033: 5.1%

According to IMARC Group's latest research publication, "UAE Retail Market: Industry Trends, Share, Size, Growth, Opportunity and Forecast 2025-2033", The UAE retail market size reached USD 145.3 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 227.1 Billion by 2033, exhibiting a growth rate (CAGR) of 5.1% during 2025-2033.

How AI is Reshaping the Future of UAE Retail Market

● Personalized Shopping Experiences: AI analyzes customer data to offer tailored recommendations, boosting sales by 20-30% in platforms like Noon and Amazon.ae, enhancing loyalty in a diverse consumer base.

● Inventory and Demand Forecasting: Predictive AI optimizes stock levels, reducing waste by 15-25% for retailers like Carrefour UAE, ensuring availability amid rapid e-commerce growth.

● Omnichannel Integration: AI-powered chatbots and virtual assistants provide seamless online-offline experiences, improving customer engagement and same-day delivery efficiency.

● Operational Efficiency Gains: Automation in supply chains and pricing strategies cuts costs by 10-20%, supporting sustainability and competitiveness in the AED 300 billion market.

● Real-Time Decision Making: Agentic AI enables dynamic pricing and marketing, driving margins in hypermarkets and luxury segments through data-driven insights.

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How We the UAE 2031 is Revolutionizing UAE Retail Industry

The retail sector vision as part of We the UAE 2031 vision sees the UAE as a global leader across economic diversification, digital economy, and customer experience. If e-commerce infrastructure investors heighten the attractiveness of the location, they will reach AED 50 billion ($13.6 billion) near 2029 since online sales expand. Dubai and Abu Dhabi rapidly urbanize and have high levels of disposable income, which grows modern malls and omnichannel retailing.

Tourism sectors draw millions each year. Luxury and experiential retailing sectors are supported by events like Dubai Shopping Festival. These sectors are growing. The government particularly supports AI and sustainability. The potential vision includes e-commerce penetrating to 16%-20%, logistics and mobile payment systems improving, and new entrepreneurs specializing in retail technology arising. These features would create jobs with resilient supply chains. The plan We the UAE 2031 ranks retail highly among key sectors improving non-oil growth. It includes physical and digital infrastructure for continual growth until 2031, in line with the Centennial 2071 vision.

UAE Retail Market Trends & Drivers:

The UAE retail market is experiencing robust growth, driven by strong tourism inflows, a large expatriate population, high disposable incomes, and rapid urbanization in cities like Dubai and Abu Dhabi. These factors fuel demand for luxury goods, fashion, electronics, and experiential shopping in world-class malls and premium outlets. Economic diversification initiatives enhance consumer spending power, while population growth and affluent residents support expansion in grocery, hypermarkets, and specialty retail. E-commerce penetration surges with high smartphone adoption and convenient platforms like Noon and Amazon.ae, accelerating online sales and quick commerce deliveries. Government support for digital infrastructure and events like Dubai Shopping Festival further stimulate seasonal spikes and year-round vibrancy in the sector.

Key trends include the rise of omnichannel retailing, blending seamless online-offline experiences through click-and-collect, in-store tech, and unified inventory. AI integration enables personalized recommendations, dynamic pricing, and efficient operations, boosting customer loyalty and margins. Sustainability gains momentum with eco-friendly products, ethical sourcing, and green packaging appealing to conscious consumers. Quick commerce and grocery delivery expand rapidly, offering ultra-fast options amid busy lifestyles. Innovations in experiential retail, such as entertainment-integrated malls and pop-up events, attract visitors, while health-focused and organic items rise in popularity, aligning with wellness preferences in this dynamic, tech-savvy market.

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UAE Retail Industry Segmentation:

The report has segmented the market into the following categories:

Product Insights:

● Food and Beverages
● Personal and Household Care
● Apparel, Footwear and Accessories
● Furniture, Toys and Hobby
● Electronic and Household Appliances
● Others

Distribution Channel Insights:

● Supermarkets and Hypermarkets
● Convenience Stores
● Specialty Stores
● Online Stores
● Others

Regional Insights:

● Dubai
● Abu Dhabi
● Sharjah
● Others

Competitive Landscape:

The competitive landscape of the industry has also been examined along with the profiles of the key players.

Recent News and Developments in UAE Retail Market

● January 2025: Dubai Economy & Tourism (DET) reported officially recorded growth in retail sales activity following the Dubai Shopping Festival, supported by increased tourist footfall and licensed retail transactions.

● March 2025: Majid Al Futtaim publicly announced new retail store openings and mall expansions across Dubai and the Northern Emirates, as part of its confirmed 2025 UAE retail investment plan.

● June 2025: Abu Dhabi Department of Economic Development (ADDED) confirmed updates to retail licensing and commercial activity classifications, streamlining approvals for brick-and-mortar and omnichannel retailers.

● September 2025: Dubai Mall and Mall of the Emirates announced new international brand entries and flagship store launches, officially disclosed by mall operators ahead of the peak retail season.

● December 2025: UAE retail authorities and mall operators confirmed record year-end retail activity during National Day and holiday shopping periods, based on officially released transaction and footfall data.

Note: If you require specific details, data, or insights that are not currently included in the scope of this report, we are happy to accommodate your request. As part of our customization service, we will gather and provide the additional information you need, tailored to your specific requirements. Please let us know your exact needs, and we will ensure the report is updated accordingly to meet your expectations.

About Us:

IMARC Group is a global management consulting firm that helps the world's most ambitious changemakers to create a lasting impact. The company provide a comprehensive suite of market entry and expansion services. IMARC offerings include thorough market assessment, feasibility studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research.

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