Shopping centers in Dubai… record occupancy and visits at historic levels

September 3

Tourist numbers, real estate recovery, job stability, and the increase in the frequency of entertainment offers and discounts supported a record rise in the number of visitors to shopping centers during the first half of 2023. The centers also witnessed record occupancy and historic visits.
Statistics showed a significant increase in the number of visitors to shopping centers in Dubai since the beginning of this year, compared to the same period in 2022, and large occupancy rates were achieved among the rented units. The number of tourists and residents in Dubai hotels increased to more than 90% on average among visitors to shopping centers, especially those close to hotels and in the city center in particular.
According to official data, Dubai witnessed a large influx of tourists from the Gulf countries, Arab countries and the world, who came with their families for the purposes of tourism, shopping, or to enjoy the various events and activities that are held in the city on an almost continuous basis.

Sales seasons and offers of international stores and brands in shopping malls in Dubai, as well as the city’s regional leadership in gold and jewelry trade, have contributed to enhancing the performance of the retail sector, making it a favorite destination for shoppers from the Gulf and the region in general.
Emaar’s midterm results revealed that shopping centres, retail assets and commercial leasing recorded a growth in their revenues during the first half of 2023 by 8% compared to the same period in 2022, reaching 3.1 billion dirhams, and the retail portfolio also achieved profits before deducting interest, taxes, depreciation and amortisation. Debt amounted to 3.2 billion dirhams, an increase of 77% over the first half of 2022.
Strong sales
Emaar attributed the growth to strong tenant sales, which rose by approximately 30%, compared to the first half of 2022, and the assets of Emaar’s main shopping centers achieved an occupancy rate of about 96%.
Majid Al Futtaim’s shopping malls also recorded an increase in visitor numbers by 12%, driven by the Mall of the Emirates, which recorded the highest footfall ever in the first half of 2023. Tenant sales achieved a growth of 7%, and the malls’ contribution to… The UAE accounted for the largest share of this growth, as the retail business recorded a growth in revenues of 8%, and earnings before interest, taxes, depreciation and amortization amounted to an increase of 5%.
Waiting lists
Many major shopping centers in Dubai are currently witnessing waiting lists by tenants, investors, and local and international brands, after the tourism momentum returned to levels exceeding 2019, and the traditional shopping sector returned to normal.
Regarding the entry of new retail spaces into the Dubai market, many reports showed the entry of new spaces during the current year, as the S&P Global report indicated the attractiveness of Dubai as a place to live and do business, at a time when the retail sector witnessed a relative decline in sales. Rentals.
A report issued by Savills said that the first half witnessed demand for storage units in many sectors, including those operating in the retail and consumer goods sectors.
A report issued by JLL also indicated that the retail sector in Dubai witnessed the entry of about 34 thousand square meters in the form of retail outlets, bringing the total inventory in the emirate to about 4.7 million square meters during the first quarter of 2023, and delivery is scheduled during the coming months. About 194 thousand square meters in Dubai, and the rental prices of retail outlets in Dubai continued to decline in the first quarter by about 1% compared to the same period in 2022.