This December, UAE shoppers get more discounts with banks helping out too
UAE banks too lend a hand in discount season - and there's also help from strong dollar
Dubai: Retailers in the UAE are pitching some of the biggest discounts and promotions to shoppers this December – and they are getting some serious help from banks too.
Leading banks were using their alliances with online platforms to ‘offer up to 10% additional discounts over and above the already discounted prices available during Black Friday sales’, said a top retailer.
“With DSF kicking off in the first week of December, it means these offers will not stop and physical retailers are now trying to woo consumers with their own Dubai Shopping Festival offers,” said Rajat Asthana, Chief Operating Officer at the electronics retailer Eros. “The overall retail business this December should see growth of more than 20% over last year by riding on these strong promotions and offers.”
The sentiment among shoppers and retailers is clear – there will be some heavy spending happening. The discounts are certainly getting bigger, catching shoppers at the right moment when they are in the mood to close the year out on a high.
Bank tie-ups are helping too.
We’re always looking for ways to make customers' money go further.
“We’re always looking for ways to make customers’ money go further,” said Farah Irani, Head of Co-Brand and Lending Partnerships at noon. “Our partnership with Emirates NBD and the launch of the noon One Visa Credit Card are great examples of this.
“This card offers real value—whether it’s up to 20% savings on noon Food and noon Minutes, 10% on NowNow, or 5% on noon, Namshi, and Sivvi, along with unlimited free delivery through noon One.”
Shoppers are getting the message. Across UAE stores and online platforms, the messaging is pretty clear – there are discounts to be had - better and bigger ones.
For instance, the price of a popular smartphone brand’s flagship model is now available at Dh1,500 or so lower than at the time of the launch in January 2024.
Visitors to the UAE are helping out too. "There are tourist groups landing in Dubai early morning and heading out to the mega-malls by 10am," said an official with a leading hotel operator. "The end-of-year shopping party has started in the UAE."
December's festive shopping will also be a boon for us.
Dollar’s strong hand
In some ways, the effects from the Trump win are also showing up in retail prices locally. The dollar’s heading onto higher levels, and when that happens, across categories such as tech gadgets, electronics, fast fashion and more, end-user prices in the UAE tend to drop. Especially, if these are imports from the Far East or Subcontinent.
“The dollar (with the dirham peg) has been good for importers this quarter, and more so since the US Presidential election on November 5,” said a retailer. “If you see online shopping giants getting hyper-aggressive on discounts for select categories, the dollar is a factor. There is more room for them.”
Black Friday sets the tone
That the mood among shoppers was bullish was apparent right from the Black Friday sales. “Many were aware that offers would be there online and in-store, plus the Dubai Super Sale (with its up to 90% off) was also on the same weekend,” said Ashish Panjabi, Chief Operating Officer at Jacky’s Group. “The long weekend also benefited us as there were more people in the malls.
“While it’s still early to say what’s in store for DSF, based on what Dubai Airports and Emirates have been saying, December looks to be a strong month for in-bound tourism. And festive shopping will also be a boon for us.”
Will gold shine brighter this DSF?
Look to the gold price and shoppers will find that it’s steady at around the $2,700 an ounce levels. The UAE gold rate for a gram of 22K is Dh303, easily the highest it’s been in the last 10 days.)
For their part, the Dubai Jewellery Group is putting their promotional muscle behind raffles, with Dh1.5 million worth of prizes to be had for the lucky ones. This is the 30th year for the Dubai Shopping Festival, and that carries extra gravitas for the local jewellery sector. Dubai’s status as the ‘City of Gold’ was established through the DSF gold raffles.
So, between December 6 to January 12, those who spend Dh1,500 or more on jewellery at outlets will get to try their luck on the jackpot. Each week, one kilogram of gold will be awarded in raffle draws, with 20 winners receiving 0.25 kilogram each.
Retailers can fine-tune their in-app options
Give shoppers the offers - and just as important make their shopping experience as seamless as possible. When it comes to online sales, retailers must get everything right when it comes to smartphone in-app purchases. This year, Black Friday in-app sales across Middle East markets increased by 74% compared to average Fridays in November, and a sharp rise from 24% in 2023, according to AppsFlyer, which specialises in marketing and data analytics.
"White Friday 2024 highlights the region's increasing embrace of mobile commerce," said Sue Azari, Industry Lead – eCommerce at AppsFlyer. "The 29% year-over-year growth in in-app purchases, led by iOS gains and an 81% surge in remarketing conversions, showcases how brands are effectively leveraging targeted strategies to engage consumers.” (Remarketing is where brands try to re-engage with customers who have already interacted with them.)