These factors have contributed to the wholesale and retail sector’s AED26.3 billion contribution to Dubai’s GDP in the first half of 2024, the largest of any sector, Vikas Chadha, CEO of Jumbo Electronics, told Arabian Business.
“All the initiatives that the Dubai government is taking is helping to drive the wholesale and retail sector,” Chadha said. “The growth in the real estate sector, the population growth, and the tourism growth, I think those three, fundamentally, from our perspective, contributed to the growth in the wholesale and retail sector.”
Population growth in Dubai
Dubai’s population is expanding rapidly, with Chadha noting that “every month I think we are adding 25,000 odd people.” This influx is partly attributed to the UAE’s golden visa programme, which offers long-term residency to investors, entrepreneurs, and skilled professionals. The emirate is currently home to over 3 million residents, up 1.43 percent from last year. Recent estimates suggest that the population is expected to grow to over 5 million by 2030.
The real estate sector’s expansion is playing a crucial role in driving retail sales, particularly in the appliances segment. “More people are moving into villas,” the CEO explained. “When they come, obviously, they set up a new home… and they tend to do up their kitchens.”
Tourism recovery is also fueling retail growth, especially in electronics. Chadha pointed out that tourists find Dubai’s electronics prices “very competitive as compared to the whole world,” leading many to purchase items like phones and laptops during their visits.
Looking ahead, Chadha expects these trends to continue driving growth in the second half of the year. He anticipates further population increases, more real estate deliveries, and the introduction of new AI-enabled electronics products to sustain the sector’s momentum.
The retail sector’s strong performance aligns with broader economic trends in Dubai. Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, recently announced that the emirate’s economy grew by 3.2 percent in Q1 2024 compared to the same period last year, adding more than AED115 billion to its GDP.
As Dubai continues to position itself as a global economic hub, the retail sector’s robust growth underscores the success of the emirate’s diversification strategies and its ability to attract both residents and visitors.
Source: Arabian Business