Retailers in the Gulf Cooperation Council (GCC) have reported high revenue due to rising inflation rates and increasing consumer spending on necessities. By 2026, the value of
in the GCC was forecasted to increase by around 39 billion U.S. dollars compared to 2021 . Favorable demographics, improving macroeconomic factors, and tourism revival are expected to be driving factors such as growth. The GCC governments’ push for economic diversification, along with the growing prominence of retailers who sell in both bricks and mortar and online settings, also contribute to the sector’s positive outlook. After the economic uncertainty following the COVID-19 pandemic, the retail sector outlook in the UAE is no different than the rest of the GCC, with forecasted sector growth and increased consumer spending.
The UAE retail sector outlook
The sector’s expected optimistic outlook in the UAE is supported by the increase in retail spending with the country’s growing economy, supported by the wider GCC region’s sustained growth. By 2026, the
volume of retail sales was forecasted to reach approximately 114 billion U.S. dollars. A significant increase in international tourism, increased construction activity, a growing population, and an upsurge in personal disposable income are expected to drive robust growth of long-term retail spending and investment. The
annual change in retail sales was estimated at around 4 percent for 2025.
Adapting to changing consumer demands
The retail industry was severely affected by the restrictions imposed during the pandemic. However, retailers could respond to the changing demands to adapt to the new challenges. Retail experts highlight the importance of upscaling digital presence for retailers to stay relevant and compete with regional and international market players as the sector begins to recover. According to a survey conducted in 2022, more than one-third of consumers in the UAE reported switching to
online shopping due to supply chain issues. (1315299) For these reasons, innovation in digital solutions and sustainability are expected to have major influence across all UAE and GCC retail industry sectors.
This text provides general information. Statista assumes no
liability for the information given being complete or correct.
Due to varying update cycles, statistics can display more up-to-date
data than referenced in the text.
