31 May 2017

The Dubai retail segment has seen a relatively modest single-digit sales growth, as the sector battles the impact of increased supply and the growing popularity of online shopping, according to a study by the Knight Frank consultancy firm.

The report said traditional retailers remain badly impacted by the overall economic slowdown that hit the Gulf Arab region after the 2014’s steep fall of the oil prices and the fast rise of e-commerce sector in the region.

It expected the sector to face more pressure over the coming couple of years when 900,000 square metres of space of new shopping centres or expansions are due to be delivered.

Competition from e-commerce competitors is also going to become more intense after global e-commerce giant Amazon.com last March agreed to buy United Arab Emirates-based online retailer Souq.com.

© Express 2017