Dubai: The UAE’s retail sector has seen tremendous developments over the last 42 years.

Once a small trading hub, Dubai saw its first modern shopping mall in 1981, with the opening of Al Ghurair Centre, followed by Deira City Centre in the mid 90s, and Mall of the Emirates and Dubai Mall in 2005 and 2008, respectively.

In the coming years, Dubai is expected to have “more brands than any other city in the world,” topping London, David Macadam, CEO and vice-chairman of the Middle East Council of Shopping Centres, said.

“Retailers do well here. Bringing more brands creates interest in the shopping public,” he explained. According to him, most of the new brands entering the market are from Western Europe and North America.

Abu Dhabi’s retail scene has seen a transformation, too. From the Central Market, the emirate has witnessed the rise of modern shopping malls, such as The Galleria and World Trade Centre Mall, as well as Yas Mall, due to open in 2014.

“Retailing continues to boom due to rise in tourism and consumer confidence. This is mainly due to strong infrastructure, government support to endure better touristic attractions, benefiting grocery and non-grocery retailers in the country,” Fatemah Sherif, research analyst at Euromonitor International, told Gulf News in an emailed statement.

Steady growth

Similarly, Eisa Adam, board of director of the Dubai Shopping Malls Group (DSMG), an umbrella organisation of malls in Dubai, said that the Dubai retail scene has been growing steadily since 2012. “As a result of this we have seen new retail chains opening up and also the existing chains have expanded,” he told Gulf News in an emailed statement.

Landmark Group, a major retail and hospitality conglomerate, announced this year that it will expand the number of outlets of its Sports One brand from six to 40 across the GCC by 2016.

The group also acquired franchise rights for Nine West and Aldo in Turkey and introduced Left Shoe Company, Stride Rite and Funky Fish in the UAE.

“Our core strategy has been to organically grow and consolidate our business in existing territories, while simultaneously exploring new markets to grow our business,” Renuka Jagtiani, Landmark Group’s vice chairperson, said.

Meanwhile, property developer Nakheel announced this year that it is expanding Dragon Mart and Ibn Battuta Mall.

Marketing campaigns drive footfall

Marketing campaigns have helped attract buyers to malls across the UAE.

“We have had the privilege to organise larger than life campaigns during the festive seasons over the last few years. The campaigns in turn have been able to draw a large number of residents, and visitors from across the world thereby generating increase in footfall and sales for the malls and the retail sector,” Adam said.

DSMG has launched promotions and campaigns during Dubai Summer Surprises, Dubai Shopping Festival and Eid to “further enhance and streamline operations in the mall and retail sector, while maximising the contribution of these two industry sectors to Dubai’s economy,” he said.

Commenting on retail trends, Fatemah said technology is playing a bigger role within the retail sector. She said internet retailing is becoming a booming retailing channel in the UAE.

“Growing usage of credit cards [and] benefits promoted by banks has helped increase the numbers of electronic transactions online. Consumers have also become more comfortable to buy online,” she said.

Additionally, retailers in the country are growing their online presence, she said. Landmark Group launched its ecommerce site, which hosts three of its brands–Splash, Emax and Babyshop.

Macadam said that there has been growth in community malls in the UAE, which offer both local and international brands.