City Centre Deira
Image Credit: Majid Al Futtaim Properties

Dubai: Majid Al Futtaim released its annual' State of the UAE Retail Economy' report for 2023. The report revealed that the UAE economy has remained resilient, with the country's Gross Domestic Product (GDP) expanded by 3 per cent due to a robust performance from non-oil sectors.

Consumer spending displayed robust growth throughout the year, delivering a 13 per cent increase in 2023 vs. 2022. Overall, absolute consumer spending in 2023 was split evenly between the first and second half of the year, driven by a 14 per cent increase in the UAE's retail economy and a 12% increase in non-retail spending.

Ahmed Galal Ismail, Chief Executive Officer at Majid Al Futtaim – Holding, said: "The UAE's far-ranging social and economic ambitions continue to fuel the Nation's success in creating long-term prosperity for its people. Over the past 12 months, its proven resilience to external pressures, progressive policy-making, and an investor-friendly business environment have seen the UAE further strengthen its position as a lighthouse for the MENA region."

70 %

of 2023 ecommerce transactions spent on mobile phone

The UAE successfully reduced inflation from a high of 5.2 per cent in 2022 to 3.3 per cent in 2023.

E-commerce

E-commerce penetration in the UAE has more than doubled since 2019, rising from 5 per cent in 2019 to 12 per cent in 2023. Approximately 70 per cent of transactions are attributed to mobile phones. According to Majid Al Futtaim's point of sale (POS) data, e-commerce consumer spending in the UAE retail economy increased by 15 per cent in 2023.

The UAE's far-ranging social and economic ambitions continue to fuel the Nation's success in creating long-term prosperity for its people.

- Ahmed Galal Ismail, Chief Executive Officer at Majid Al Futtaim

Travel and Tourism

The UAE's travel and tourism sectors witnessed significant growth in 2023, with tourist numbers surpassing pre-pandemic levels for the first time. More than half (53 per cent) of international visitors came from Western Europe, South Asia, and the GCC. There was a notable surge in Chinese visitors, which rose by 287% compared to 2022.

Real Estate

Following a solid performance in 2022, the UAE's real estate market thrived in 2023. Transactions were up 18 per cent compared to 2022, with sales values increasing by 39 per cent to Dh370 billion in 2023. Dubai, in particular, has seen a rapid increase in property prices, growing by over 20 per cent annually in 2023.