The UAE ranks second worldwide when it comes to recreational shopping.
A marketing campaign that promotes Dubai as the ultimate leisure and shopping destination of the world reads, "Do buy in Dubai". It's a sign you come across at the airport, in shopping malls and printed on paper bags, something that drives home the message that "Dubai" and "Do-buy" are one and the same. With around 2.2 million square metres of retail space currently under development, Dubai, is comfortably positioned as one of world's fastest growing retail markets. Growth in population and an increase in tourist inflow have led to the demand for all types of retail space. A recent survey by a leading market information provider ranks the UAE second worldwide when it comes to recreational shopping, behind Hong Kong, where 34 per cent of local respondents shopped once a week for "entertainment" compared against the 30 per cent of the UAE respondents.
The emirate's gross leasable area (GLA) now accounts for 17 per cent of the GCC total, a figure that is expected to double to 34 per cent by 2010. According to figures published by real estate firm Colliers International, the Mall of Emirates with a GLA of 223,000 square metres is currently the largest shopping centre in the GCC, while the Mall of Arabia (phase I) will have a GLA of more than 400,000 square metres when it opens in 2010. Dubai Festival City currently features an estimated GLA of 195,000 square metres (with 58,000 square metres under construction), and the Dubai Mall is expected to cover around 344,000 square metres of GLA.
The malls of Dubai are not just shopping centres, but community centres that offer residents leisure and cultural attractions. From the world's largest indoor ski slope to the best of international brand retailers, Dubai's malls positively contribute to the hospitality sector, which plans to attract 15 million visitors by 2010. The Dubai Shopping Festival and the Dubai Shopping Surprises provide year-round impetus to the emirate's retail boom. In 2007 Mall of Emirates and Deira City Centre recorded a total of more than 10 million visitors during Dubai Summer Surprises. Combined sales were up 38 per cent to Dh1.6 billion during the 10-week festival.
According to Rashid Doleh, CEO, Emaar Malls Group LLC (the shopping subsidiary of Emaar Properties), "We have plans to build 150 malls within the region and key emerging markets in the Middle East and North Africa within the next decade." In Dubai, Emaar Malls Group is developing three malls. The Dubai Mall, Emaar Malls flagship project will offer more than 1,200 retail outlets. It is one of the world's largest shopping and entertainment destinations. The Dubai Mall will include the world's largest aquarium, featuring a 180-degree walkthrough tunnel along with the world's largest indoor gold souk with 220 stores and a 440,000 square-foot fashion area dedicated to haute couture. Kidzania, a children's edutainment centre, is being introduced in the region for the first time, along with a 76,000 square-foot entertainment and gaming complex. The Dubai Mall's 22-screen Cineplex and an Olympic-size ice rink will keep adults and children entertained all around the year. The water features of the mall will include a thundering waterfall, an indoor lake featuring a musical fountain, and a four-storey fashion ramp set within a water feature. Dubai Mall expects 21,000 visitors in its first year.
Emaar Malls' Souk Al Bahar, scheduled to open in December 2007, is an Arabesque shopping and entertainment development located in The Old Town. With 130 speciality stores and a strong waterfront café, Souk Al Bahar will be connected to the Dubai Mall by a bridge.
Also under construction is the Dubai Marina Mall, scheduled to open in mid-2008. Located within the vibrant Dubai Marina community, the complex will have 160 stores, with 390,000 square feet of gross leasable space. One of the highlights of the Marina Mall is the seven-storey gourmet tower dedicated to world cuisine. "Malls have now become lifestyle, shopping and entertainment destinations as opposed to purely functional venues. Consumer behaviour is changing as work and lifestyles become more demanding, with less time for leisure. Malls are, therefore, offering the total lifestyle experience to meet and exceed consumer expectations," said Doleh.
According to Nakheel spokesperson Aaron Richardson, mall floor space in Dubai will reach 5.5 million square metres by 2010. "We are considering a substantial expansion to Ibn Battuta Mall. We are also considering a large regional mall and entertainment centre for The Palm Deira. The Palm Jumeirah will also have a major luxury shopping centre featuring a mix of high-end brands and a variety of entertainment and leisure options. The centre will be home to the Cirque Du Soleil theatre," said Richardson.
"The Middle East is a vibrant and eclectic marketplace. Capturing tourist visitors by carefully mixing leisure and entertainment within the retail sector is part of creating a new future," says Myra Searle, Senior Vice President, Retail, Galadari Group. Mall of Arabia, developed by the Galadari Group in the heart of Dubailand with a GLA of 10 million square feet (including phase 1 and 2) intends to change Dubai's retail sector beyond all recognition.
"The mall has been designed with the customer in mind. The main entertainment areas of the mall include the Restless Planet, which will offer the whole family a four-hour experience of dinosaur animatronics, roller coaster and simulator rides, museum and educational exhibits. There is also a family entertainment centre with small rides and creche facilities. The sports centre will have golf and basket ball practice sections," says Searle.
