Dubai’s retail, hospitality and tourism sectors are proving resilient. But the rules of growth are changing. Businesses must compete on value, experiences and collaboration, not discounts alone, industry leaders said at a high-level forum organised by IBPC Dubai.
Hosted by the Retail, Hospitality & Tourism (RHT) Focus Group, the ‘Dubai Promotions Impact’ event brought together senior representatives from the Department of Economy and Tourism (DET), NielsenIQ, IBPC Dubai and leading retailers to discuss Dubai’s promotional roadmap for 2026-27 and the evolving dynamics shaping one of the world’s fastest-growing consumer markets.
The event commenced with a welcome address by Paras Shahdadpuri, Governor of IBPC Dubai, while Amit Vardhan, Convenor of the Retail, Hospitality & Tourism Focus Group, served as the master of ceremonies, guiding the proceedings throughout the event.
Presenting the latest market intelligence, Roshni Sheth, Retail Customer Success Leader APP; Smit Joshi, Retail Manager Insights; and Gurpreet Aulukh, Senior Manager Insights, NielsenIQ, highlighted the resilience of the UAE retail market amid evolving consumer behaviour.
UAE FMCG grew by 7.3 percent, with e-commerce accounting for 13 per cent of FMCG sales and more than 30 percent of technology and durables revenue. While 46 percent of consumers are actively monitoring their spending, online retail continues to outperform offline channels, growing 23 percent compared with 2.4 per cent. The speakers noted that retailers must shift from broad discounting to value-led, targeted promotions, with Ramadan, Dubai Shopping Festival, Back-to-School and Black Friday remaining key demand drivers. They also highlighted the continued growth of the UAE’s AED 8.7 billion consumer electronics market, underpinned by e-commerce, convenience and changing customer expectations.
Mohammed Feras Arayqat, Acting Vice President – Retail Calendar & Promotions at the Department of Economy and Tourism (DET), outlined Dubai’s ambitious 2026-27 promotional roadmap, highlighting the city’s integrated approach to retail, tourism, hospitality and entertainment.
Over the past decade, Dubai’s annual events calendar has grown from 12 to more than 80 events, with flagship initiatives including the 29th edition of Dubai Summer Surprises, encompassing the Great Dubai Summer Sale, Back-to-School campaigns and the ‘Win Your Home in Dubai’ initiative. He also highlighted support for entrepreneurs through Ma’an by Majid Al Futtaim, the AED 1 billion economic stimulus package, fee waivers for local businesses and the continued expansion of the Make it in the UAE initiative.
Looking ahead, DET identified Diwali, the festive season, National Day celebrations and major sporting and entertainment events in Q3 and Q4 as key growth opportunities for retailers.
“None of these sectors work in isolation. A successful festival brings traffic to restaurants, malls, hotels and attractions. This integrated approach is at the heart of Dubai Calendar,” said Arayqat.
The interactive discussion between industry leaders and DET focused on visitor growth projections, artificial intelligence, commercial rents and opportunities for greater retailer collaboration. DET confirmed it is working with payment networks and strategic partners to develop an advanced retailer insights dashboard that will provide businesses with deeper intelligence on consumer spending, high-growth retail categories, location performance and market trends.
Responding to questions on AI, Arayqat stressed that technology should enhance rather than replace business strategy. “We look at AI as complementary. It supports our wider initiatives.”
DET also confirmed plans to launch a dedicated 10-day Electronics Festival in April 2027, following industry feedback calling for a platform similar to GITEX Shopper.
Encouraging retailers to think beyond discounts, Arayqat added, “Don’t think of the calendar as one of discounts, but of offers, experiences and new activations. Tell us what you’re planning and we can support you.”
Closing the forum, Dr. Sahitya Chaturvedi, Secretary General of IBPC Dubai, highlighted the scale and diversity of Dubai’s AED 228 billion retail economy, noting that visitor spending continues to fuel growth across luxury, fashion, jewellery, perfumes and food, not just consumer electronics. He also announced the launch of the inaugural IBPC Retail Festival on 1 October 2026, positioning it as a new platform to bring together industry leaders, policymakers and businesses to shape the future of retail in the UAE.
“The discussions reinforced that as Dubai’s promotional calendar continues to expand and consumer expectations evolve, closer collaboration between government and industry, supported by data, innovation and customer-centric strategies, will remain central to sustaining growth across the retail, hospitality and tourism sectors,” he concluded.
