Glamorous results for make-up in UAE
Women in the UAE spend 38 per cent more on make-up than their counterparts in France, home to some of the world's biggest beauty brands.
It should therefore come as no surprise to hear that the industry is booming in the Emirates. And a recent study by the Dubai Chamber of Commerce and Industry (DCCI) has revealed just how much it is worth. Between 2003 and last year annual imports of beauty products to the UAE rose from Dh1.4 billion (US$381.1 million) to Dh4.1bn, while exports jumped from Dh100m to Dh400m over the same period. The value of Dubai's cosmetics retail sector grew from Dh3bn in 2005 to Dh5.5bn last year.
The forecast is based on a report by Euromonitor International, which recently revealed that spending on cosmetics in the UAE is considerably higher than that in many European countries.
A number of factors fuelled the growth of the sector in the Emirates, including a phenomenon known as the "lipstick effect".
"This is the view that is commonly held among consumers that cosmetics and well-being products are often considered a daily necessity," said Dr Belaid Rettab, the senior director at the DCCI's Economic Research and Sustainable Business Development sector.
"These products exhibit stable sales and are hardly affected by the economic cycle."
The Dubai Shopping Festival and Dubai Summer Surprises also contributed to the growth of the sector, but duty free sales at Dubai International Airport played a major part, Dr Rettab said.
"The airport is a strategic transit hub in the region and has incredibly strong sales in luxury goods, especially cosmetics and perfumes, and this trend is expected to continue."
Tourism generally contributed to the expansion of the sector as visitors tend to spend their holiday money in luxury spas and on beauty treatments and products, Dr Rettab said.
Dubai's young population and sizeable middle class accounted for the final factor in the growth of the cosmetics sector.
"Young people tend to spend more on luxury products and this is increasingly true for regions where people have higher disposable incomes," Dr Rettab said.
Published: August 2, 2011 04:00 AM