Slowing retail growth in the UAE has led to a boom in sales promotions and “value” products.
Majid Al Futtaim (MAF), the owner of the City Centre shopping centres and Mall of the Emirates, says the challenging economy has led to a growth in sales of “value” merchandise.
“Value products are doing well, in fact they are growing,” said Ghaith Shocair, the chief executive for MAF shopping malls, speaking at a ground breaking event for City Centre Al Zahia in Sharjah.
He said retailers that were actively pushing promotions and adding value to their customers’ baskets were seeing a response and producing results.
“The current economic climate is producing winners and losers. The UAE’s retailers have had a great run and been very profitable seeing relentless growth. But now there are more challenges and from that the customer will benefit.”
Retailers are being forced to slash prices to tempt shoppers back to malls. Dubai this week revealed details of a three-day “Super Sale” that is expected to run from May 18 to 20.
The Dubai Festivals and Retail Establishment is coordinating the sale that will offer discounts of as much as 90 per cent.
Tough trading conditions in the retail sector have led to warnings from some retailers about the negative effect of high rents on tenants.
"Mall operators need to be careful about their charges because there is a point when we look at our operating costs and if online makes more sense then we will leave," Anthony Chalhoub, the co-chief executive of the Chalhoub Group, told The National this week.
The group, which runs more than 600 outlets across the Middle East, closed more than 50 stores last year – or double its normal churn. “Rent is a function of sales. My business is not about wringing every last cent out of our retail partners. If you have a unique concept that I believe will drive footfall to our mall then the rent will be negotiable because I want you there. Dubai’s rents are still at a mid-level compared against other cities when it comes to luxury and premium stores,” said Mr Shocair.
He said the challenge from the burgeoning e-commerce space was still in its infancy, accounting for only 2 per cent of retail spend in the region, but had a challenge of its own to overcome.
“E-commerce accounts for a small percentage of wallet spend,” said Mr Shocair. “It is still not certain how big e-commerce can become here because it is unlike other markets with the lifestyle barriers and other challenges. I believe we must offer an omni-channel experience that encompasses both worlds.”
MAF announced the Dh2.6 billion mall in the new Al Zahia development in Sharjah. Due in 2020, it will have 136,200 square metres of gross leasable area housing 360 outlets, slightly smaller that City Centre Mirdif.
“Al Zahia is in a great location just off the 311 and 611,” said Matt Green, the head of research and consultancy for CBRE. “It is in the middle of an upscale housing development and will be a destination mall for those in the northern emirates with many more entertainment options than most Sharjah malls offer.”
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Tips to stay safe during hot weather
- Stay hydrated: Drink plenty of fluids, especially water. Avoid alcohol and caffeine, which can increase dehydration.
- Seek cool environments: Use air conditioning, fans, or visit community spaces with climate control.
- Limit outdoor activities: Avoid strenuous activity during peak heat. If outside, seek shade and wear a wide-brimmed hat.
- Dress appropriately: Wear lightweight, loose and light-coloured clothing to facilitate heat loss.
- Check on vulnerable people: Regularly check in on elderly neighbours, young children and those with health conditions.
- Home adaptations: Use blinds or curtains to block sunlight, avoid using ovens or stoves, and ventilate living spaces during cooler hours.
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Killing of Qassem Suleimani
Credit Score explained
What is a credit score?
In the UAE your credit score is a number generated by the Al Etihad Credit Bureau (AECB), which represents your credit worthiness – in other words, your risk of defaulting on any debt repayments. In this country, the number is between 300 and 900. A low score indicates a higher risk of default, while a high score indicates you are a lower risk.
Why is it important?
Financial institutions will use it to decide whether or not you are a credit risk. Those with better scores may also receive preferential interest rates or terms on products such as loans, credit cards and mortgages.
How is it calculated?
The AECB collects information on your payment behaviour from banks as well as utilitiy and telecoms providers.
How can I improve my score?
By paying your bills on time and not missing any repayments, particularly your loan, credit card and mortgage payments. It is also wise to limit the number of credit card and loan applications you make and to reduce your outstanding balances.
How do I know if my score is low or high?
By checking it. Visit one of AECB’s Customer Happiness Centres with an original and valid Emirates ID, passport copy and valid email address. Liv. customers can also access the score directly from the banking app.
How much does it cost?
A credit report costs Dh100 while a report with the score included costs Dh150. Those only wanting the credit score pay Dh60. VAT is payable on top.
How to watch Ireland v Pakistan in UAE
When: The one-off Test starts on Friday, May 11
What time: Each day’s play is scheduled to start at 2pm UAE time.
TV: The match will be broadcast on OSN Sports Cricket HD. Subscribers to the channel can also stream the action live on OSN Play.
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The Federal National Council is one of five federal authorities established by the UAE constitution. It held its first session on December 2, 1972, a year to the day after Federation.
It has 40 members, eight of whom are women. The members represent the UAE population through each of the emirates. Abu Dhabi and Dubai have eight members each, Sharjah and Ras al Khaimah six, and Ajman, Fujairah and Umm Al Quwain have four.
They bring Emirati issues to the council for debate and put those concerns to ministers summoned for questioning.
The FNC’s main functions include passing, amending or rejecting federal draft laws, discussing international treaties and agreements, and offering recommendations on general subjects raised during sessions.
Federal draft laws must first pass through the FNC for recommendations when members can amend the laws to suit the needs of citizens. The draft laws are then forwarded to the Cabinet for consideration and approval.
Since 2006, half of the members have been elected by UAE citizens to serve four-year terms and the other half are appointed by the Ruler’s Courts of the seven emirates.
In the 2015 elections, 78 of the 252 candidates were women. Women also represented 48 per cent of all voters and 67 per cent of the voters were under the age of 40.
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UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
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Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions