Dubai Duty Free expects flat revenue growth this year, as it renovates its retail space at Dubai International Airport in an attempt to turn more passengers into shoppers.
Its 180 shops expect a sales turnover of Dh6.65 billion this year, compared with Dh6.67bn last year.
This year, it expects to add 2,000 square metres of retail space in the Passenger Terminal Building at Al Maktoum International Airport, doubling its retail space.
At Dubai International, Dubai Duty Free is renovating its retail space in Concourse C between now and the summer of 2018 without expanding its total footprint.
Dubai Duty Free’ sales were up 5.2 per cent in 2014 over the previous year, were flat in 2015 over 2014, and down 5.4 per cent last year over 2015 sales. But passenger numbers have kept increasing at a steady clip during this time.
The past three years have been challenging for the travel retail industry in general and Dubai Duty Free in particular, according to Ramesh Cidambi, the chief operating officer at Dubai Duty Free.
“While it is true that total passenger numbers have been growing at Dubai International Airport, there have been several factors that have depressed spending by these passengers,” he said. “The first is the weak oil price since the summer of 2014 [and] that led to reduced spending by passengers from the region.”
The trend of slower growth rates in duty free sales is a global one, according to Hugo Van Der Schaegh, the general manager at the travel retail branding and design agency ODG in Dubai. The company has designed food and beverage outlets at Dubai International.
“The journey of a passenger through an airport has changed due to security measures, reducing time that can be spent at the retail shops,” he said. “Besides a lot of people are accessing the [premium] lounges through various programmes such as from credit cards, and high Wi-Fi usage [means] people are spending more time on their gadgets rather than visiting shops.”
Competition among airports to attract customers to their duty free shops is also increasing.
“Over the past couple of years Indian airports, for instance, have upgraded their shops and we see the Indian passengers spending there instead of here in Dubai,” Mr Van Der Schaegh said.
The drop in oil prices has led to an overall slowdown in economic growth in the Middle East. It is the top region for Dubai Duty Free, accounting for 21 per cent of its sales to departing passengers, the operator said.
“Dubai Duty Free continued to see this effect [of the slowdown] and sales in March to passengers from the region were lower by 3 per cent even as total sales were higher for the quarter ending March 31,” Mr Cidambi said.
The strength of the dollar and the weakness in some currencies such as euro and sterling added to the slower growth in sales. Europe, including the United Kingdom, accounts for 18 per cent of the business at Dubai Duty Free.
To encourage shoppers, it is working with suppliers to offer better value for money when compared to regions such as Europe, the UK or India.
Changes in the purchasing behaviour of Chinese passengers due to the anti-corruption drive in China has also depressed purchases of luxury items by its nationals, according to Mr Cidambi and Mr Van Der Schaegh.
“The last factor is the increasing pressure from pure online players who continue to pressure all retailers and not just travel retailers such as Dubai Duty Free,” Mr Cidambi said. Among the steps it has taken to check the drop in sales has been price cuts since 2015 on a range of items.
“Adding experiences to the retail shops, such as telling the stories behind a product or a store, that is not found online, [and] exposure to the offers [could also help to attract passengers],” Mr Van Der Schaegh said.
Dubai Duty Free, for instance, is renovating shops such as those in the perfumes and cosmetics segments in Concourse B, and it set up a new section selling watches in Concourse D, and added Apple shops in Concourses A and B.
It is also developing its online presence.
In February last year, it opened 7,000 sq metres of new retail space in Concourse D and added 1,300 sq metres in the link corridor between Concourse B and Concourse C, which is dedicated to Emirates airline. Concourse D has generated a total of more than Dh371.5 million in sales since it opened in February last year. Year to date, Concourse D accounts for 21.6 per cent of the sales at Dubai Duty Free.
The total retail space operated by Dubai Duty Free at both of Dubai’s airports is about 36,000 sq metres.
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COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
How to watch Ireland v Pakistan in UAE
When: The one-off Test starts on Friday, May 11
What time: Each day’s play is scheduled to start at 2pm UAE time.
TV: The match will be broadcast on OSN Sports Cricket HD. Subscribers to the channel can also stream the action live on OSN Play.
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NO OTHER LAND
Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal
Stars: Basel Adra, Yuval Abraham
Rating: 3.5/5
Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
Volvo ES90 Specs
Engine: Electric single motor (96kW), twin motor (106kW) and twin motor performance (106kW)
Power: 333hp, 449hp, 680hp
Torque: 480Nm, 670Nm, 870Nm
On sale: Later in 2025 or early 2026, depending on region
Price: Exact regional pricing TBA
Ms Yang's top tips for parents new to the UAE
- Join parent networks
- Look beyond school fees
- Keep an open mind
In numbers: PKK’s money network in Europe
Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010
Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille
Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm
Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year
Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”
Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners
TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013
A MINECRAFT MOVIE
Director: Jared Hess
Starring: Jack Black, Jennifer Coolidge, Jason Momoa
Rating: 3/5
LA LIGA FIXTURES
Thursday (All UAE kick-off times)
Sevilla v Real Betis (midnight)
Friday
Granada v Real Betis (9.30pm)
Valencia v Levante (midnight)
Saturday
Espanyol v Alaves (4pm)
Celta Vigo v Villarreal (7pm)
Leganes v Real Valladolid (9.30pm)
Mallorca v Barcelona (midnight)
Sunday
Atletic Bilbao v Atletico Madrid (4pm)
Real Madrid v Eibar (9.30pm)
Real Sociedad v Osasuna (midnight)
The rules on fostering in the UAE
A foster couple or family must:
- be Muslim, Emirati and be residing in the UAE
- not be younger than 25 years old
- not have been convicted of offences or crimes involving moral turpitude
- be free of infectious diseases or psychological and mental disorders
- have the ability to support its members and the foster child financially
- undertake to treat and raise the child in a proper manner and take care of his or her health and well-being
- A single, divorced or widowed Muslim Emirati female, residing in the UAE may apply to foster a child if she is at least 30 years old and able to support the child financially
Why it pays to compare
A comparison of sending Dh20,000 from the UAE using two different routes at the same time - the first direct from a UAE bank to a bank in Germany, and the second from the same UAE bank via an online platform to Germany - found key differences in cost and speed. The transfers were both initiated on January 30.
Route 1: bank transfer
The UAE bank charged Dh152.25 for the Dh20,000 transfer. On top of that, their exchange rate margin added a difference of around Dh415, compared with the mid-market rate.
Total cost: Dh567.25 - around 2.9 per cent of the total amount
Total received: €4,670.30
Route 2: online platform
The UAE bank’s charge for sending Dh20,000 to a UK dirham-denominated account was Dh2.10. The exchange rate margin cost was Dh60, plus a Dh12 fee.
Total cost: Dh74.10, around 0.4 per cent of the transaction
Total received: €4,756
The UAE bank transfer was far quicker – around two to three working days, while the online platform took around four to five days, but was considerably cheaper. In the online platform transfer, the funds were also exposed to currency risk during the period it took for them to arrive.
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
BLACK%20ADAM
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Killing of Qassem Suleimani
Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
Company%20profile
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COMPANY%20PROFILE
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At a glance
Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.
Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year
Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month
Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30
Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse
Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth
Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances
The specs: 2018 Nissan Patrol Nismo
Price: base / as tested: Dh382,000
Engine: 5.6-litre V8
Gearbox: Seven-speed automatic
Power: 428hp @ 5,800rpm
Torque: 560Nm @ 3,600rpm
Fuel economy, combined: 12.7L / 100km
The%20specs
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