Report: Supported by increased number of visitors from outside the country
Consumer spending in the UAE up 19% in 2022
Retail spending grew by 13%. Archival
Majid Al Futtaim's 'State of the Retail Economy in the UAE' report showed yesterday that consumer spending in the UAE increased by 19% last year compared to 2021.
The report, which was revealed by the company in a statement, said that consumer spending in the retail sector recorded a growth of 13%, explaining that this included entertainment and entertainment sites, which recorded an increase of 29%, fashion by 25%, while shopping from supermarkets and hypermarkets recorded a growth of 11% and general retail by 9%.
He pointed out that this growth was supported by the increase in the number of visitors from outside the country, as their number doubled to reach 14 million visitors in 2022, thanks to many major international events hosted in the region.
The report pointed out that average spending per transaction in supermarkets and hypermarkets decreased by 3% over the past year, but nevertheless total spending in this sector increased by 11% compared to 2021.
He stated that the retail sector sales at the weekend during 2022 increased by 11.3% compared to the previous year, boosting consumer spending by about AED 5.5 billion.
The report pointed out that specialized reports show that the UAE is recording the fastest growth rates of the e-commerce market in the world, with sales expected to reach $ 9.2 billion by 2026.
Spending in this sector peaked in the fourth quarter of 2022, registering an overall growth of 20% compared to 2021.
Ahmed Galal Ismail, Chief Executive Officer of Majid Al Futtaim Holding, said: "The UAE economy has achieved the highest annual GDP growth rate since 2006, benefiting from the capabilities of the country's economy and its potential to overcome the most complex economic challenges.
"In this edition of the State of the UAE Retail Economy, we highlight the strength and resilience of the UAE economy that supports the country's position as a global example of social and economic prosperity in the MENA region."
Highest GDP since 2006
According to the State of the Retail Economy in the UAE, the country recorded the strongest annual GDP growth rate since 2006, jumping to 7.9% from 3.9% in 2021, driven by remarkable growth in the oil and non-oil sectors.
The non-oil sector recorded a growth of 6.6%, supported by extensive government efforts to attract more investment and restore the vitality of the tourism sector.