Fashion is big business in the UAE – and new statistics show it was worth more than $12bn in retail sales last year.
A report from the Dubai Chamber of Commerce reveals clothing sales amounted to about $12.3bn in the UAE in 2018 – an increase of 4.8 per cent from 2017.
The retail fashion sector is expected to continue to see even stronger growth from 2019 to 2023, according to the report.
Using data from Euromonitor International, the report said menswear was the single highest-earning segment of retail fashion sales in the UAE, accounting for about $6.2bn (about 53 per cent of the total) in sales. Womenswear accounted for about 34 per cent, with childrenswear around 7 per cent.
While the report says the continuing rise of online sales could put pressure on stores, retailers will likely still experience growth by offering more deals to capitalise on consumer demand.
Source: Dubai Chamber Research based on Euromonitor
The report predicts womenswear will grow at a faster rate than menswear from 2019 to 2023, at 4.9 per cent compared to 3.8 per cent. Womenswear is expected to be worth $5.2bn in fashion retail sales by 2023. Menswear is expected to be worth $7.3bn.
Childrenswear is also expected to be worth $1bn by 2023.
“The UAE has positioned itself as world-class retail hub which continues to attract retailers and consumers from around the world, while global fashion brands still view the country as a preferred entry point for establishing their presence in the MENA region,” says the report.