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UAE airport retail sales likely to reach $161.6 billion by 2028

GCC airport retail market projected to grow at 9.5% CAGR during 2024 to 2032

Published: Thu 19 Dec 2024, 6:55 PM

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Duty free shops at the Dubai International Airport. — File photo

Duty free shops at the Dubai International Airport. — File photo

Airport retail sales in the UAE are expected to reach $161.6 billion by 2028, a study showed.

The flourishing tourism industry in the GCC region, which boosts footfall in airports and other duty-free zones, is propelling the market growth forecasted at 9.5 per cent compound annual growth rate (CAGR) during 2024 to 2032. This offers a unique opportunity for Abra to be at the forefront of this evolution. Dubai’s aviation sector, a key economic pillar, is projected to contribute 2 per cent to the emirate’s GDP by 2030, a significant increase from 27 per cent in 2023. The construction of the new $35 billion passenger terminal at Al Maktoum International Airport (DWC) is a cornerstone of this growth, forecasted to add $3 billion in annual retail sales . This robust trajectory underscores Dubai’s commitment to enhancing its status as a global aviation hub, backed by significant investments in infrastructure and innovation.

During this period, airport retail sales in Saudi Arabia are expected to reach $139.1 billion by 2028.

Abra, a leader in luxury retail fit-outs in the UAE and the Middle East and North Africa (Mena) region, cites that the GCC’s airport retail sector is experiencing unprecedented expansion, fuelled by increasing passenger traffic, growing tourism, and significant investments in airport infrastructure.

“As airports transform into vibrant retail destinations, they are becoming global stages for luxury retail. In the GCC, this trend is particularly pronounced, with airports integrating expansive retail spaces that rival traditional shopping malls. For instance, Dubai International Airport (DXB) is on track to handle a record 91.8 million passengers in 2024, an eight per cent increase from the previous year, reflecting the region’s robust aviation growth,” said Anand Kumar, managing director of Abra. “This evident trend in GCC airports and others has positioned them as global leaders in offering unparalleled luxury retail experiences, from opulent boutiques to a fully immersive brand experience, ensuring each traveller’s visit is a truly memorable one.”

Against this backdrop, Abra is strategically positioned to capitalise on these opportunities and transform airport retail into iconic luxury destinations , supported by its advanced solutions and unparalleled craftsmanship. Abra has completed over 200 projects over the last 3 years at 21 airport destinations, specialising in fragrance, beauty, confectionery, liquor, and fashion categories. The global airport retailing market is expected to reach $90.23 billion by 2033, growing at a CAGR of 11.7 per cent.



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