UAE Retail Sector Thrives as Malls Transform into Experiential Hubs

Have you noticed how shopping habits have shifted in recent years? With the rise of online shopping, many malls around the world are struggling to keep customers. But the story is quite different in the Middle East, particularly in the UAE, where retail spaces are transforming into thrilling hubs of activity.

According to a recent report, the retail industry in the UAE is expected to grow at a steady 5.4% CAGR through 2028. This growth is not just about selling products; it’s about creating experiences. Today’s consumers—especially the new generation of shoppers—seek out venues that blend shopping, dining, leisure, and socializing all under one roof.

Malls here aren’t just showcasing products anymore; they’re becoming experiential landscapes. These spaces now focus on creating emotional connections with visitors while also being flexible enough to adapt to changing consumer preferences. Interestingly, about 71% of shoppers want digital features integrated into their in-store experiences, with nearly half of them actively seeking ways to improve their shopping trips.

What’s more, the UAE has seen an astonishing 88.5% increase in the number of expats since 2025, many of whom are families searching for a better lifestyle. This uptick has driven the retail sector to craft entertainment-focused experiences, making malls even more attractive for both residents and tourists. In 2024 alone, Dubai welcomed over 18.72 million international visitors, marking a substantial increase from the previous year.

But the UAE isn’t just about tourism; it’s also making strides toward sustainability. Aligning with initiatives like the Net Zero 2050 commitment, developers are focusing on eco-friendly materials and sustainable practices without sacrificing quality. This new approach is evident in fitness studios, wellness clinics, and co-working spaces that promote a more balanced lifestyle.

As neighborhoods evolve—take Dubai Hills and Nad Al Sheba, for instance—they’re being designed with a “15-minute city” concept in mind. This means that shops, schools, parks, and healthcare facilities are all within easy reach for residents, enhancing community life and convenience.

With changing consumer habits comes the demand for innovative design. Companies specializing in luxury fit-out are stepping up to create environments that not only look good but are also functional. Brands like Abra are at the forefront, melding luxury with practicality while ensuring that all designs resonate with cultural significance and sustainability. These companies collaborate with brands to integrate modern technologies and experiences that keep pace with evolving consumer preferences.

In today’s retail landscape, success hinges not just on creating stunning spaces but on how well they adapt to shifting consumer needs. It’s an exciting time for retail in the UAE, a region where the fusion of shopping, entertainment, and sustainability is setting new standards in the industry.