The flourishing tourism industry in the GCC region, which boosts footfall in airports and other duty-free zones, is propelling the market growth forecast at a 9.5% compound annual growth rate (CAGR) during 2024 to 2032, according to luxury retail fit-outs in the MENA region Abra.

Dubai’s aviation sector, a key economic pillar, is projected to contribute 2% to the emirate’s GDP by 2030, a significant increase from 27% in 2023.

The construction of the new $35 billion passenger terminal at Al Maktoum International Airport (DWC) is a cornerstone of this growth, forecast to add $3 billion in annual retail sales. This robust trajectory underscores Dubai's commitment to enhancing its status as a global aviation hub, backed by significant investments in infrastructure and innovation.

Abra cites that the GCC’s airport retail sector is experiencing unprecedented expansion, fuelled by increasing passenger traffic, growing tourism, and significant investments in airport infrastructure. The UAE and Saudi Arabia are at the forefront of this boom, with retail sales expected to reach $161.40 billion and $139.10 billion, respectively, by 2028.

Against this backdrop, Abra is strategically positioned to capitalise on these opportunities and transform airport retail into iconic luxury destinations, supported by its advanced solutions and unparalleled craftsmanship. It has completed over 200 projects over the last 3 years at 21 airport destinations, specialising in fragrance, beauty, confectionery, liquor, and fashion categories.

Furthermore, it navigates unique challenges such as security regulations, material specifications, and health and safety requirements to deliver world-class luxury retail environments that balance aesthetics with operational efficiency.

Managing Director of Abra, Anand Kumar, said: “As airports transform into vibrant retail destinations, they are becoming global stages for luxury retail. In the GCC, this trend is particularly pronounced, with airports integrating expansive retail spaces that rival traditional shopping malls. For instance, Dubai International Airport (DXB) is on track to handle a record 91.8 million passengers in 2024, an 8% increase from the previous year, reflecting the region’s robust aviation growth.”

Kumar added: “This evident trend in GCC airports and others has positioned them as global leaders in offering unparalleled luxury retail experiences, from opulent boutiques to a fully immersive brand experience, ensuring each traveller’s visit is a truly memorable one.”

Abra plays a vital role in this evolution, having redefined airport retail spaces at major airports across 21 countries spanning across Europe, Asia and Africa; including the UAE, KSA, Turkey, India, and Egypt. Their extensive portfolio spans multiple retail categories, including fragrance, beauty, confectionery, and fashion, where stringent security regulations, material specifications, and health and safety considerations come into play.

Creating these experiential retail environments that balance aesthetics with operational efficiency ensures that global luxury brands connect with travellers at every touchpoint.

Airports today are no longer mere transit hubs, they are lifestyle destinations, offering a sophisticated mix of luxury retail, dining, and entertainment.

The global airport retailing market is expected to reach $90.23 billion by 2033.

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