As the six-month world’s exhibition comes to a close, we look back at how its success positively impacted the world of retail locally and regionally.
We highlight the ways businesses have capitalised on the success of Expo 2020 and the accompanying rise in tourism.
Having run from October 1, 2021 to March 31, 2022, Expo 2020 featured pavilions of 192 countries and received over 24.1 million visitors from 178 countries, with 49 per cent as repeat customers.
In its State of the UAE Retail Economy 2021 report, retail conglomerate Majid Al Futtaim outlined a 22 per cent increase in tourist spending in the fourth quarter of last year from 2019, overlapping with the 32 per cent increase in tourist visits to Dubai.
Majid Al Futtaim shopping malls also recorded an 11 per cent increase in footfall during the fourth quarter of last year, with spending accounting for 16 per cent of the UAE’s Gross Domestic Product.
“The Q4 State of the UAE Retail Economy report provides evidence that the country’s global events like Expo 2020, comprehensive vaccination efforts sand the adoption of new working practices have contributed significantly to driving forward the UAE’s economy over the last 12 months,” said Alain Bejjani, CEO of Majid Al Futtaim Holding.
“We have now entered 2022 with a renewed sense of optimism and a belief that the region is poised to benefit from continued policy innovation, a rebound in tourism and a gradual global recovery,” he added.
Coinciding with the second half of the exhibition, over 24,000 business licenses were issued in the first quarter of this year, a 58 per cent increase from 10,000 issued in the same quarter of last year, reported the Business Registration and Licensing sector of the country’s Department of Economy and Tourism.
The surge in business openings come after 76 per cent of Dubai businesses, including retail, reported growth over the six months of Expo 2020, with 73.5 per cent forming new business relationships and partnerships, according to the Business Integration for Growth, Digital Transformation and Global Partnerships report written by the Dubai Chamber of Commerce in collaboration with the Oxford Business Group.
“Retail sales are set to continue on a growth trajectory in 2022,” Ahmad Al Khaja, CEO of Dubai’s Festivals and Retail Establishment department told Khaleej Times.
“With Expo 2020 Dubai opening its doors to the world, further supported by the UAE’s vaccination program, last year’s retail data from Q3 of 2020 recorded an 8 per cent increase in average spends per person by tourists during their stay in Dubai,” Mr Al Khaja added.
Dubai’s revenue per available room for businesses including retail reached AED460 in January of this year, a 56.3 per cent increase from its valued of AED293 in January 2021.
Purchasing Managers’ Index, a barometer of economic and business progress, Dubai’s non-oil economy, which encompasses wholesale and retail, was valued at 55.5 in March, a 2.6 per cent increase from 54.1 in February and the highest since December. Companies also reported the greatest confidence to date in the future of their business activity.
This echoes the Foreign Direct Investment Confidence Index 2022, released by global management consulting firm Kearney, which reported that Expo 2020 has pushed regional brands to consider global expansions. The UAE was ranked first in the region and 14th globally.
“At Expo 2020, we saw some of the world’s smallest and largest countries actively pitching their business brands in the region,” said Ramesh Menon, CEO of Dubai-based marketing agency brandform.
“The Expo gave these visiting businesses the opportunity to physically experience how the UAE has built for itself a vibrant business community.
“For companies in the UAE, the Expo was a realisation that a world of opportunities exists beyond their local or regional borders – physical or imagined,” Mr Menon added.
Countries that participated in Expo 2020 have implemented strategies to expand their footprint. Malaysian businesses, including retail, secured over $8.38 billion in returns on trade and investments with the global business community in the first three months of the exhibition.
The Philippines has received letters of intent from Middle Eastern countries to invite $600 million worth of investments.
The commercial division of investment firm Al Ghurair, Al Ghurair Retail, intends to introduce prominent Spanish brands to its retail portfolio, following the success of its retail ventures at Spain’s pavilion at Expo 2020.
Under its commercial space, La Tienda: Brands of Spain Shop, the pavilion housed products from over 20 retailer brands. The space received over 580,000 visitors, with fashion and jewellery brands accounting for 53 per cent of the shop’s total sales.
“Expo 2020 Dubai was a visionary showcase of synergy: bringing together countries, brands and organisation from across the globe, in an energetic and colourful celebration of cultural diversity,” said Arturo Lejan, CEO of Al Ghurair Ventures.
“Through this prestigious platform, we were able to support our representative brands with elevating profile and equity, as well as enhancing consumer choice in the regional retail sector.
“Its success has opened talks over Al Ghurair Retail potentially adding several Spanish brands to their diverse portfolio, cementing their footprint in the region,” added Mr Lejan.
Looking forward, executives of retail companies are expecting success to prevail this year, thanks to the success of Expo 2020 and increased consumer interest.
“Globally, Dubai is considered the top and central shopping destination. It is convenient for shoppers from all over the world because all the major brands have established outlets in many of its leading malls,” said Yasser Beydoun, managing partner and co-founder of Brands for Less.
“It is apparent that the retail sector will gain the most from the Dubai Expo 2020. This means that the retail sector can anticipate substantial growth in sales this coming year since Dubai Expo 2020 is attracting tourists from all over the world,” Mr Beydoun concluded .
