Double-digit increase in UAE consumer spending in 2023: report

Double-digit increase in UAE consumer spending in 2023: report
Ahmed Galal Ismail, CEO at Majid Al-Futtaim Holding
Short Url
Updated 08 April 2024
Follow

Double-digit increase in UAE consumer spending in 2023: report

Double-digit increase in UAE consumer spending in 2023: report

Majid Al-Futtaim, a leading shopping mall, communities, retail, and leisure pioneer across the Middle East, Africa, and Asia, released its annual “State of the UAE Retail Economy” report for 2023. The report, which highlights key economic data, trends and insights into consumers’ behavior patterns, spending habits, and sentiment across the country, revealed that the UAE economy has remained resilient amid recent geopolitical tensions and economic headwinds, with the country’s gross domestic product expanding 3 percent on the back of a robust performance from non-oil sectors.

Consumer spending in the retail economy displayed robust growth throughout the year, delivering a 13 percent increase in 2023 vs. 2022. While data showed a slowdown across the retail sectors in H2 2023 vs. H2 2022, this was found to be the result of a higher base effect from the previous year’s FIFA World Cup, which had given impetus to consumer spending due to a surge in tourism for that period. Overall, absolute consumer spend in 2023 was split evenly across the first half and the second half of the year, driven by a 14 percent increase in the UAE’s retail economy, including fashion (31 percent), general retail (16 percent), leisure and entertainment (15 percent), and hypermarkets and supermarkets (3 percent), and a 12 percent increase in non-retail spending in areas such as real estate services (100 percent), petrol and gas stations (28 percent), transportation (57 percent), and airlines (25 percent).

Ahmed Galal Ismail, CEO at Majid Al-Futtaim — Holding, said: “The UAE’s far-ranging social and economic ambitions continue to fuel the nation’s success in creating long-term prosperity for its people. Over the past 12 months, its proven resilience to external pressures, coupled with progressive policy-making and an investor-friendly business environment has seen the UAE further strengthen its position as a lighthouse for the MENA region.

“Bucking global trends, the nation’s ability to act as a magnet for global talent, investors and entrepreneurs, has translated to a record number of visitors, far surpassing pre-COVID levels, fueling consumer confidence and further contributing to its thriving retail sector. Looking ahead, buoyed by positive retail economy indicators, the UAE is well-positioned to continue its remarkable growth trajectory.”

E-commerce

E-commerce penetration in the UAE has more than doubled since 2019, rising from 5 percent in 2019 to 12 percent in 2023, with approximately 70 percent of transactions attributed to mobile phones. Consequently, the recorded growth in consumer spending was spurred by higher levels of accessibility brought on by an e-commerce boom, which has not slowed since the onset of the pandemic. Supported by the UAE’s Digital Economy Strategy which aims to double the contribution of the digital economy to GDP by 2032, and owing to world-class logistics and advanced digital infrastructure, there was a 15 percent increase in e-commerce consumer spending in the UAE retail economy in 2023, according to Majid Al-Futtaim Point of Sales data.

Travel and tourism

The UAE’s travel and tourism sectors witnessed significant growth in 2023, with tourist numbers surpassing pre-pandemic levels for the first time. More than half (53 percent) of international visitors came from Western Europe, South Asia, and the GCC. There was a notable surge in Chinese visitors, which rose by 287 percent compared to 2022.

Dubai alone hosted 17.2 million overnight international visitors in 2023, a 19 percent year-on-year increase, with Dubai International Airport experiencing its highest quarterly traffic in Q3 since 2019. As a result, hotel occupancy records hit a record high of 77 percent in 2023, up from 73 percent in 2022. The success of the country’s travel and tourism sector is in line with the UAE Tourism Strategy 2031, which aims to attract 100 billion dirhams ($27.2 billion) in tourism investments and accommodate 40 million hotel guests by 2031.

Real estate

Following a very strong performance in 2022, the UAE’s real estate market continued to thrive in 2023 marking a record-breaking year both in terms of property sales volumes and value. Transactions were up 18 percent compared to 2022, with sales values increasing by 39 percent to 370 billion dirhams in 2023. Dubai, in particular, has seen a rapid increase in property prices, growing by more than 20 percent annually in 2023, making it the second-fastest growing real estate market in the world.


Abeer Medical Group celebrates 25 years in Saudi Arabia

Abeer Medical Group celebrates 25 years in Saudi Arabia
Updated 01 January 2025
Follow

Abeer Medical Group celebrates 25 years in Saudi Arabia

Abeer Medical Group celebrates 25 years in Saudi Arabia

Abeer Medical Group celebrated 25 years in Saudi Arabia with a grand ceremony held at the Ritz-Carlton Jeddah. The celebration brought together guests from various sectors, including officials from the Ministry of Health, insurance providers, bankers, diplomats, suppliers, and leaders from the business community.

The event commenced with a warm welcome from Dr. Jemshith Ahmed, vice president of strategic planning and medical affairs, who expressed gratitude for the support and dedication of everyone involved in Abeer’s journey.

Alungal Mohammed, president of Abeer Medical Group, reflected on the challenges the organization has faced over the years, emphasizing the resilience and commitment of the team. He expressed appreciation for all stakeholders, whose unwavering support has been pivotal in Abeer’s growth.

The Vision 2030 roadmap, designed by Crown Prince Mohammed bin Salman under the guidance of King Salman, has paved the way for Abeer to expand its services to meet the growing healthcare needs of the community. With plans to add around 40 new centers across major and tier 2 cities, Abeer will enhance its capacity to serve a growing patient base.

The president also highlighted the importance of collaboration with government ministries, insurance companies, and community members, in driving Abeer’s mission forward. Looking to the future, Abeer is dedicated to harnessing technology and innovation while continuing its commitment to patient-centered care, he said.

Dr. Ahmed Alungal, executive vice president, shared insights into the group’s current standing in the healthcare sector and outlined an ambitious vision for the future.

Dr. Alungal highlighted the introduction of two new verticals designed to enhance Abeer Medical Group’s service offerings: Lavender Health — a premium clinic that provides a carefully curated selection of specialties tailored specifically for niche groups, and Abeer Express clinics — local neighborhood clinics that deliver accessible and affordable primary healthcare services to the community. He outlined Abeer’s ambitious expansion plans, revealing that the organization would grow its presence from the current six cities to more than 15 across the Kingdom. This expansion is set to significantly increase its reach, making quality healthcare accessible to more than 14 million care seekers, up from the current 4 million.

Among the guests at the event were Mohammed Alhassan, co-founder and co-CEO of Gulf Islamic Investments, and Khaled Almaeena, director of Abeer Medical Group, who praised Abeer’s achievements and contributions to the community.

The evening concluded with Hamza Dagistani, vice president of human capital and shared services, proposing a vote of thanks, recognizing the collaborative efforts and dedication of all who have contributed to the group’s success over the past 25 years.


Wallan Trading launches 2025 Lotus Emeya in Riyadh

Wallan Trading launches 2025 Lotus Emeya in Riyadh
Updated 01 January 2025
Follow

Wallan Trading launches 2025 Lotus Emeya in Riyadh

Wallan Trading launches 2025 Lotus Emeya in Riyadh

Wallan Trading Company has unveiled the new 2025 Lotus Emeya, the first electric hyper-GT that joins the brand’s lineup of next-generation hyper electric vehicles. The Emeya combines an elegant, sporty design with the latest cutting-edge technologies to deliver dynamic driving pleasure.

The Lotus Emeya offers world-class luxury, comfort, and seamless connectivity. It is equipped with a number of advanced technologies designed to instill customer confidence and safety while offering future-ready capabilities for autonomous driving. The vehicle is also designed for software updates to remain at the forefront of innovation.

The launch event took place at the newly inaugurated Lotus showroom in the luxury car mall, I Mall, Riyadh, attended by Fahad Al-Wallan, chairman of Wallan Holding, along with senior officials, guests, customers, and members of the media.

Al-Wallan highlighted the strong partnership between Wallan Trading and Lotus, which he said is delivering the world’s best designs and innovations in high-performance sports cars to Saudi customers. He said: “The Lotus Emeya sets new standards for the future of luxury electric mobility. The Emeya is an exceptional addition to the Lotus lineup in Saudi Arabia, which also includes the electric Lotus Eletre and Lotus Emira — both featuring innovative sports designs and remarkable capabilities.”

Al-Wallan also reaffirmed Wallan Trading’s commitment to serving Lotus customers and providing advanced services for their vehicles, ensuring an exceptional driving experience and peace of mind for customers.

Dan Palmer, president and CEO of Lotus Cars for Asia Pacific, Middle East, and Africa, highlighted the importance of the Saudi market and the shared vision with Wallan Trading to strengthen Lotus’ presence in the Kingdom, saying: “The Lotus Emeya is the ideal choice for customers seeking a combination of luxury, high performance, comfort, and safety.”

The Emeya sets a new standard for the experience of driving luxury electric vehicles, bringing together the brand’s rich history, with sports car levels of performance and latest technologies.”

The Lotus Emeya, with up to 905 horsepower, is considered one of the fastest electric GTs in the world. It accelerates from zero to 100 km/h in under 2.8 seconds and can charge from 10 percent to 80 percent in just 14 minutes using a 400 kW DC fast charger. This makes it one of the fastest-charging electric cars available today.

Its powerful, efficient, and refined all-electric powertrain delivers the perfect balance of high performance, responsiveness and range with a maximum of 610 km per charge. The Lotus Emeya includes a range of advanced and active aerodynamic features such as the pioneering active front grille, rear diffuser, and rear spoiler to ensure smooth airflow, combined with a low center of gravity that enhances stability when driving and sets a standard for exceptional handling capability.

Drivers can select from up to five driving modes (Range, Tour, Sport, Individual, and Track) to tailor the car’s performance. An electronically controlled air suspension system with advanced onboard sensors responds to changes in road conditions and automatically adjusts the vehicle setup. This ensures a smooth ride and optimum driving experience for customers.

The Lotus Emeya is consciously designed with advanced sustainable materials that are sustainably sourced to reduce its carbon footprint. 

It is equipped with a state-of-the-art 15.1-inch HD OLED Lotus HyperOS award-winning in-car infotainment system, which intelligently helps drivers locate nearby public chargers. The system can also suggest alternative routes based on the driver’s real-time battery consumption.

The Lotus Emeya is designed for practicality without compromising on luxury. It features a luxurious and ample boot of up to 509-liters, a functional and spacious interior, ambient lighting functions that intuitively communicates with the driver, and five massage modes at three different levels of intensity.


Johnson Controls Arabia hosts ‘Community Sports Day’ to celebrate successful World Cup bid

Johnson Controls Arabia hosts ‘Community Sports Day’ to celebrate successful World Cup bid
Updated 01 January 2025
Follow

Johnson Controls Arabia hosts ‘Community Sports Day’ to celebrate successful World Cup bid

Johnson Controls Arabia hosts ‘Community Sports Day’ to celebrate successful World Cup bid

Johnson Controls Arabia, a leader in smart, healthy, and sustainable building solutions, recently hosted its inaugural Community Sports Day, with the support of the Ministry of Sports. The event brought together many families to showcase the unifying power of sports and physical activity, and to celebrate the Kingdom’s successful 2034 FIFA World Cup bid.

Held in alignment with the Ministry of Sports’ vision to promote active lifestyles and inclusive communities, the event embodied the values of teamwork, fitness, and togetherness. The day featured an exciting football tournament, interactive challenges, and family-friendly games that fostered engagement and fun for participants of all ages. The event’s theme, “Live Active,” inspired attendees from government, private sector and nongovernmental organizations to embrace a healthier and more connected way of life.

This initiative aligns seamlessly with one of Vision 2030’s tenets of improving quality of life and cultivating a culture of physical activity. Statistics from the General Authority for Statistics reveal that 48.2 percent of Saudi Arabia’s population participates in sports activities weekly, a momentum JCA is committed to supporting through innovative and impactful programs like Community Sports Day.

Dr. Mohanad Alshaikh, CEO of JCA, said: “JCA’s Community Sports Day is a testament to our dedication to fostering vibrant communities and promoting healthier lifestyles.”

“I also take great pride in congratulating the Kingdom of Saudi Arabia on its remarkable achievement of securing the World Cup 2034 bid. This milestone reflects the Kingdom’s leadership and its unwavering vision to advance global sports.”

Corporate social responsibility remains a fundamental pillar of JCA’s strategy, driving initiatives that extend beyond the workplace to create a positive societal impact. Community Sports Day exemplifies this commitment by integrating innovation, teamwork, and sustainability into actions that benefit society and the environment.

“Through events like this, Johnson Controls Arabia reaffirms its mission to contribute to a healthier, more connected, and sustainable future for Saudi Arabia and the global community,” a statement said. “This inaugural Community Sports Day serves as a milestone in JCA’s ongoing journey to inspire positive change and support the Kingdom’s ambitious goals for an active and unified society.”


Chinese delivery app Keeta launches in Jeddah with exclusive offers

Chinese delivery app Keeta launches in Jeddah with exclusive offers
Updated 01 January 2025
Follow

Chinese delivery app Keeta launches in Jeddah with exclusive offers

Chinese delivery app Keeta launches in Jeddah with exclusive offers

Keeta, the international subsidiary of Meituan, China’s on-demand delivery giant, announced today its highly anticipated launch in Jeddah, introducing new benefits to the city’s bustling delivery market. With Keeta, residents can now enjoy free delivery on orders without any subscription fees, along with an exclusive delivery offer for McDonald’s and a SR100 ($26.6) voucher. 

Building on its reputation as a leader in the delivery space, Keeta partners with over 13,000 restaurants, from beloved local eateries to global chains. Customers can order from iconic names such as KFC, Hardees, Dominos, Starbucks, Al-Tazaj, Dunkin, Herfy, Baskin Robbins, Al-Romansiah, Deep Fries, Shawarma Alrimal, and N9 Darzan. To support this extensive network, Keeta has registered more than 15,000 riders, ensuring seamless deliveries. Both partner and rider numbers continue to grow rapidly, reflecting Keeta’s commitment to excellence.

Jeddah’s vibrant economy and growing demand for efficient delivery services underscore the importance of this expansion. With a thriving population and an increasing reliance on digital platforms, the city is poised to benefit from Keeta’s innovative approach to delivery.

“Our launch in Jeddah marks a significant milestone for Keeta as we continue to grow our presence in the Kingdom,” said Keeta’s CEO and VP of International Business at Meituan Tony Qiu. “Aligned with Vision 2030, we aim to empower local businesses and enhance the quality of life for residents. We’re thrilled to bring our industry-leading services to one of Saudi Arabia’s most dynamic cities.”

Keeta’s value proposition focuses on affordability, offering unlimited free delivery with no subscription fees, a dependable on-time delivery guarantee, and a wide selection of restaurants and cuisines. The platform aims to deliver an exceptional food delivery experience tailored to customer needs. As Keeta expands across Saudi Arabia, it remains dedicated to transforming the food delivery industry and supporting the Kingdom’s economic growth.


Burjeel Holdings acquires 100% stake in Makkah’s Specialist Physiotherapy Center

Burjeel Holdings acquires 100% stake in Makkah’s Specialist Physiotherapy Center
Updated 31 December 2024
Follow

Burjeel Holdings acquires 100% stake in Makkah’s Specialist Physiotherapy Center

Burjeel Holdings acquires 100% stake in Makkah’s Specialist Physiotherapy Center

In a significant move that highlights its expanding presence across Saudi Arabia, Burjeel Holdings PLC, a leading super-specialty healthcare provider in the MENA region, listed on the Abu Dhabi Securities Exchange, has announced the acquisition of a 100 percent stake in the Specialist Physiotherapy Center, a premier healthcare facility in Makkah, through its subsidiary Burjeel KSA. With a total investment value of SR6.5 million ($1.7 million), this acquisition aligns with Burjeel’s strategy to broaden its footprint in Saudi Arabia and enhance its capabilities to deliver world-class physiotherapy and rehabilitation services. Strategically located in Makkah, the center is positioned to cater to the needs of Umrah and Hajj pilgrims, with hotel physiotherapy offerings designed to support the needs of both tourists and pilgrims.

The Specialist Physiotherapy Center, founded in 2017, is known for its advanced treatments, expert team, and exceptional patient care. Over the past two years, it has demonstrated strong growth, achieving a 2.1x increase in revenue to SR3.8 million from 2021 to 2023, reflecting strong patient demand and operational efficiency.

With an experienced team of 17 highly qualified physiotherapists, the center specializes in sports injuries, pediatric care, and post-surgical rehabilitation. The center features state-of-the-art facilities, including high-intensity electromagnetic therapy, cryotherapy, laser treatments, and a standalone gym, yoga studio, and educational center.

The center presents a valuable opportunity to strengthen Burjeel’s brand presence in this key market, as Makkah attracts millions of pilgrims annually. The center has formed strategic partnerships with organizations such as the Makkah Islamic Authority, the Saudi Federation for Soccer, and the National Guard. It is actively involved in partnerships with sports academies, medical organizations, and local charities to promote health and wellness.

John Sunil, group CEO of Burjeel Holdings, said: “This strategic acquisition reflects our commitment to enhancing access to world-class healthcare services across the Kingdom of Saudi Arabia. Recognizing Makkah’s status as a primary destination for pilgrims, integrating the Specialist Physiotherapy Center into our network not only enhances our offerings in physiotherapy and rehabilitation but also supports our broader vision to serve both local and international patients and support the Kingdom’s medical tourism ambitions. We look forward to enhancing the center’s capabilities and introducing new services as part of our ongoing efforts to provide innovative and comprehensive care to our patients.”

This Specialist Physiotherapy Center will be integrated into Burjeel’s PhysioTherabia network, the fastest-growing and largest physiotherapy and wellness network in the Kingdom. In the coming months, the focus will be on expanding the center’s services and building on existing partnerships. The group plans to activate new programs, including pediatric and neuro rehabilitation services, and introduce advanced technologies such as a cryo chamber and the David system for physiotherapy. The integration of these services will further establish the center as a premier destination for rehabilitation in the Kingdom. 

The acquisition also aligns with the group’s broader objective to contribute to the Kingdom’s Vision 2030 by supporting the healthcare sector’s growth and enhancing its global competitiveness.