The retail sector in the UAE experienced a significant surge in 2023, bucking global trends, according to the latest State of the UAE Retail Economy report published by regional retail organisation Majid Al Futtaim.

The findings, which cover key economic data trends and insights into consumer behaviour, show the UAE economy recorded 3% GDP growth, fuelled by a robust performance in non-oil sectors, Gulf Business reports.

Inflation remained under the global average of 6.9% and Middle East average of 13.9%, according to the report.

“Over the past 12 months, its proven resilience to external pressures, coupled with progressive policymaking and an investor-friendly business environment has seen the UAE further strengthen its position as a lighthouse for the MENA region,” said Ahmed Galal Ismail, CEO at Majid Al Futtaim – Holding.

“The nation’s ability to act as a magnet for global talent, investors and entrepreneurs, has translated to a record number of visitors, far surpassing pre-Covid levels, fuelling consumer confidence and further contributing to its thriving retail sector.”

In addition, consumer spending in the retail sector rose 13% last year compared to 2022. Positive growth was registered in the fashion segment, with a 31% rise, followed by general retail with 16% growth and leisure and entertainment up 15%.

Furthermore, the travel and tourism sectors in the UAE made a considerable rebound last year, exceeding pre-pandemic levels. Indeed, Dubai registered 17.2 million overnight guests. 

Hotel occupancy reached an all-time high of 77% in 2023, a rise from 73% in 2022.

The research showed that 53% of international visitors arrived from Western Europe, South Asia, and the GCC, with an increase in the number of visitors from China, rising by 287% compared to the year before.

Moreover, property prices grew 20% in Dubai in 2023, a rise of 18% over the previous year, with sales values rising by 39% to Dhs370bn last year.