The UAE is forecast to be in sixth position out of forty nine as the best performing market out of in 2020 – researched by GlobalData – with spend growth remaining in positive territory, significantly helped by its short lockdown period. Data collected by the Data & Analytics firm GlobalData has forecast the retail sector in the UAE to grow by only 0.4% in 2020.
“Although COVID-19 is set to wipe AED13.5 billion off the original 2020 forecast growth of 5.8% in the UAE, its wealthy population and brief lockdown period will mean the market holds up better than many of its MENA neighbours,” observed Emily Salter, retail analyst, GlobalData. “Additionally, the UAE will experience a faster recovery than most western economies due to consumers’ greater propensity to spend on luxury items, although falling oil prices may have a long-term impact on domestic consumer wealth.”
“The first malls to re-open in Abu Dhabi at the beginning of May have introduced safety precautions including visitors being scanned by thermal cameras as they enter the location, gloves and masks being required. Shoppers have been asked to bring their own bags and to pay by card. If successful, the safety strategies implemented by malls could be used by other retailers and landlords to implement their own opening plans, potentially allowing shops to open earlier than they otherwise would have, improving the economic recovery – both in the UAE and globally,” added Salter.
