The UAE retail market continued to expand in 2023, driven by higher consumer spending, strong tourism growth, and increasing adoption of online shopping. Retail categories such as fashion, electronics, food and beverage, and leisure recorded notable gains, while favorable economic conditions supported overall market growth.

For this statistical roundup, we analyzed and compiled key insights from the Majid Al Futtaim Retail Economy Report to highlight the most important trends shaping the UAE retail sector. This article brings together the latest UAE retail statistics on consumer spending, shopping behavior, e-commerce growth, tourism impact, inflation, and economic indicators, giving readers a data-driven view of the market's performance and direction. 

Top UAE Retail Statistics at a glance

• Overall consumer spending in the UAE increased by 13% in 2023, while retail spending grew by 14% compared to the previous year.

• Fashion was the fastest-growing major retail category, with consumer spending increasing by 31% in 2023.

• Consumer spending across general retail categories, including food and beverage, hotels, and electronics, increased by 16% during the year.

• E-commerce penetration more than doubled from 5% in 2019 to 12% in 2023, highlighting the rapid shift toward online shopping.

• Consumer spending on e-commerce platforms increased by 15% in 2023, with mobile devices accounting for 70% of online retail transactions.

• Online spending on electronics surged by 271%, making it one of the fastest-growing segments in the UAE retail market.

• Dubai welcomed 17.2 million international overnight visitors in 2023, representing a 19% increase compared to 2022.

• Tourist spending on fashion products increased by 64% year over year, with tourists accounting for 23% of total fashion spending in 2023.

• Physical stores remained the dominant shopping channel, accounting for 85% of total supermarket spending, despite strong growth in online grocery sales.

• The UAE's inflation rate averaged 3.3% in 2023, remaining well below global and regional averages and helping support consumer spending growth. 

UAE Retail Market Growth Statistics

The UAE retail market is influenced by consumer spending, economic activity, tourism, and population growth. These figures provide a broad view of how the retail sector is performing and which segments are contributing most to overall market expansion. 

• Overall consumer spending in the UAE increased by 13% in 2023 compared to 2022, driven by strong growth across both retail and non-retail sectors.

• Spending within the retail economy grew by 14% in 2023, while non-retail spending increased by 12%.

• Retail general categories accounted for 38% of total retail spending, followed by hypermarkets and supermarkets at 33%, fashion at 26%, and leisure and entertainment at 3%.

• Retail spending growth was strongest in the first half of the year, rising 25%, while the second half recorded 4% growth.

• The final quarter of 2023 accounted for 27% of the year's total retail spending, driven by seasonal shopping activity and COP28-related tourism.

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Hypermarket and Supermarket Statistics

Groceries and household essentials are among the most frequent purchases consumers make. Changes in supermarket spending, basket sizes, and shopping frequency often reveal shifts in consumer confidence, inflation pressures, and everyday spending habits. 

• Consumer spending in the UAE's hypermarket and supermarket sector increased by 3% in 2023 compared to the previous year. 

• Online grocery sales grew by 19% during 2023, reflecting the continued adoption of digital shopping channels among UAE consumers.

• Despite the growth of online grocery shopping, physical stores remained the dominant sales channel, accounting for 85% of total supermarket spending. 

• The average amount spent per shopping basket declined by 2%, while transaction volumes increased by 4%, suggesting that consumers made more frequent shopping trips but purchased fewer items during each visit. 

Retail General Category Statistics

Food outlets, hotels, electronics stores, pharmacies, and duty free retailers make up a significant portion of retail activity in the UAE. Performance across these categories reflects both local consumer demand and spending from international visitors. 

• Consumer spending across general retail categories, including food and beverage, hotels, electronics, pharmacies, and duty-free stores, increased by 16% in 2023 compared with the previous year.

• Electronics recorded the strongest growth among major retail categories, with consumer spending increasing by 33% during the year.

• Spending on food and beverage purchases grew by 25%, while spending on hotels increased by 17%, supported by strong tourism activity and consumer demand.

• Food and beverage purchases accounted for 41% of the category's total growth in 2023, making them the largest driver of retail general category growth. Hotels contributed a further 35% of the category's overall growth.

Fashion Retail Statistics

Fashion remains one of the UAE's most competitive retail sectors due to its strong luxury market and global shopping appeal. Spending trends in clothing, accessories, watches, and jewellery often mirror changes in tourism, disposable income, and consumer preferences. 

• Fashion was the fastest-growing major retail category in the UAE, with consumer spending increasing by 31% in 2023 compared to the previous year.

• Spending on fashion and accessories grew by 36%, while spending on watches and jewelry increased by 25%, reflecting strong demand across the fashion sector.

• Tourist spending on fashion products rose by 64% year over year, highlighting the growing contribution of international visitors to retail sales.

• Tourists accounted for 23% of total fashion spending in 2023, up from 19% in 2022, 16% in 2021, and 11% in 2020, demonstrating the increasing role of tourism in driving fashion retail growth.

Leisure and Entertainment Statistics

Spending on cinemas, attractions, and recreational activities highlights how consumers allocate money beyond essential purchases. These figures offer insight into lifestyle trends and the growing role of experiences within the UAE consumer economy. 

• Consumer spending on leisure and entertainment activities increased by 15% in 2023, reflecting strong demand for recreational experiences across the UAE.

• Cinema spending grew by 33% during the year and contributed more than two thirds of the sector's overall growth, supported by the release of several blockbuster movies.

• Spending on recreational activities and tourist attractions increased by 4% in 2023, driven by continued interest from both residents and visitors.

• Mall footfall increased by 11% compared to the previous year, highlighting the continued popularity of shopping malls as destinations for retail, dining, and entertainment.

UAE E-commerce Statistics

Digital commerce has become a major growth driver for the retail sector. Online shopping adoption, mobile purchasing behavior, and category specific e-commerce growth reveal how consumers are embracing digital channels and how retailers are adapting to changing buying habits.

• E-commerce penetration in the UAE more than doubled from 5% in 2019 to 12% in 2023, underscoring the rapid growth of online shopping nationwide.

• The share of e-commerce within the UAE retail economy increased from 10% in 2022 to 12% in 2023, reflecting the growing importance of digital sales channels.

• Consumer spending through e-commerce platforms increased by 15% in 2023 compared to the previous year.

• Mobile devices accounted for approximately 70% of all online retail transactions, making smartphones the preferred channel for online shopping in the UAE.

• The UAE is ranked as the world's 27th-largest e-commerce market and is projected to generate $17.2 billion in e-commerce revenue by 2027.

• Hypermarkets, supermarkets, and general retail categories accounted for 73% of all e-commerce spending in the UAE, making them the largest contributors to online retail sales.

• Online spending on electronics increased by 271% in 2023, while online food and beverage spending grew by 57%, demonstrating strong consumer demand across key retail categories.

Consumer Shopping Behavior Statistics

Consumer preferences often shape retail performance as much as economic conditions. Discount seeking behavior, price sensitivity, and shopping channel preferences provide valuable context for understanding why spending patterns change over time. 

• Nearly 47% of consumers preferred purchasing discounted products in 2023, while 20% switched to lower-priced brands to manage their household spending.

• More than half of consumers (52%) actively monitored price changes before making purchases, highlighting the growing importance of value and price awareness.

• Around 43% of shoppers preferred a combination of online and in-store shopping, indicating that consumers increasingly value both digital convenience and physical shopping experiences.

• Fresh food purchases remained largely in-store, with 60% of consumers preferring to buy fresh produce in person rather than online.

Tourism Impact on Retail Statistics

International visitors contribute significantly to retail sales across fashion, hospitality, dining, and entertainment. Tourism related metrics help explain how visitor activity supports retail growth and strengthens consumer spending across multiple sectors. 

• Dubai welcomed 17.2 million international overnight visitors in 2023, representing a 19% increase compared to 2022 and exceeding pre-pandemic tourism levels.

• Tourist arrivals from China increased by 287% year over year, making China one of the fastest-growing source markets for visitors to the UAE.

• Hotel occupancy reached 77% in 2023, up from 73% in 2022 and exceeding the 75% rate recorded in 2019, before the pandemic.

• Revenue per available hotel room increased by 6% during 2023, while hotel guests stayed an average of 3.8 nights, reflecting strong demand across the hospitality sector.

Retail Inflation Statistics

Price movements influence what consumers buy, how much they spend, and which categories experience stronger demand. Monitoring inflation across essential and discretionary spending categories helps explain broader retail spending trends. 

• The UAE's inflation rate averaged 3.3% in 2023, remaining significantly lower than both global and regional inflation levels.

• Food and beverage prices increased by 4.6% during 2023, contributing to higher household spending on everyday essentials.

• Clothing and footwear prices rose by 4.0% compared to the previous year.

• Prices for restaurants and accommodation services increased by 3.7% in 2023, reflecting strong demand across the hospitality sector.

• Housing, water, electricity, and gas costs increased by 5.7%, making them one of the largest contributors to overall inflation in the UAE.

UAE Economic Indicators Supporting Retail Growth

Retail performance does not operate in isolation. Economic growth, foreign investment, business expansion, and consumer confidence create the conditions that support spending, encourage new retail development, and attract international brands to the market. 

• The UAE economy grew by 3% in 2023, while the non-oil sector expanded by 5.6%, highlighting the country's continued economic diversification.

• Foreign investment projects increased by 28% in 2023 compared to the previous year, supporting business activity, job creation, and consumer spending.

• The UAE Purchasing Managers' Index (PMI) averaged 56.1 in 2023, indicating continued growth in business activity and strong private sector performance.

• Around 91% of UAE residents described themselves as happy or very happy, reflecting high levels of consumer confidence and a positive outlook toward spending and economic conditions.

Final Words

Strong consumer spending, growing tourism activity, rapid e-commerce adoption, and favorable economic conditions helped drive the UAE retail sector forward in 2026.

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