The UAE retail industry is expected to grow at a compound annual rate (CAGR) of 5.4% through 2028, driven by shifting consumer behaviour and a shift towards experience-led environments. While global mall visitation is declining owing to e-commerce, the Middle East continues to witness high consumer engagement in physical retail areas. Modern buyers need a combination of leisure, food, wellness, and social contact in a single location, forcing malls to grow beyond traditional formats.

Retail interiors are being redesigned to create emotionally engaging spaces that use advanced digital technologies. Approximately 71% of UAE consumers currently use digital features while buying, with 43% doing so to improve in-store visits. In parallel, the country’s expatriate migration is expected to increase by 88.5% by 2025, with the majority of families drawn by lifestyle offerings.

Dubai drew 18.72 million international visitors in 2024, a 9.15% increase over the previous year, highlighting the UAE’s retail-driven tourism appeal. Retail developments are increasingly supporting the Net Zero 2050 target by promoting environmentally friendly products and sustainable fit-outs. Malls increasingly serve as neighbourhood anchors, including wellness studios, co-working spaces, and social venues.