Can UAE's mall culture defy new age of online shopping amid US decline?


Daniel Bardsley
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Few – if any – cities in the world are more closely associated with the shopping mall than Dubai.

From long-established favourites such as Mazaya Shopping Centre in Al Wasl and Mercato Mall in Jumeirah, through to mega-malls like Mall of the Emirates, Ibn Battuta Mall, and of course the flagship Dubai Mall, the city is a shopaholic’s paradise.

And there is more to come. According to a recent paper in the journal Sustainability, Dubai has 10 malls under construction to add to the 65 that already exist.

“Shopping malls have emerged as de facto community centres and public squares where Dubai residents can congregate, socialise, and participate in various events,” the researchers wrote.

In the UAE, shopping mall culture began in the early 1980s, with the opening of the Al Ghurair Centre, and accelerated in the 1990s and 2000s.

The rise of the mega mall

Ski Dubai is a major attraction at Mall of the Emirates. Pawan Singh / The National
Ski Dubai is a major attraction at Mall of the Emirates. Pawan Singh / The National

The “City Centre” outlets from Majid Al Futtaim were among the standard bearers and the company took things up a gear with the Mall of the Emirates, which opened in 2005 beside Sheikh Zayed Road with well over 600 shops and the Ski Dubai venue.

Ibn Battuta Mall, launched further up Sheikh Zayed Road the same year courtesy of the developer Nakheel.

Another mega-mall, Dubai Mall, developed by Emaar and located beside the Burj Khalifa, opened in 2008 and attracts tens of millions of visitors each year to its more than 1,200 retail units.

“The retail experience … overall in the UAE, particularly in Dubai, is at the pinnacle of what you would find,” David Macadam, chief executive of the Middle East Council of Shopping Centres and Retailers, said.

“Dubai Mall and Mall of the Emirates … it’s the best retail experience that you can find anywhere. They keep getting the details correct to make the shopper come back for more.”

As an example, he cited the “absolutely exquisite” bathroom facilities, comparable to those in a five-star hotel.

Recent years have seen the continued opening of malls in the country, especially of malls within new communities, such as on the islands around Abu Dhabi.

The UAE’s embrace of all that is luxurious and shiny in its malls appears not to have been mirrored in the US, according to Prof Mark Cohen, director of retail studies at Columbia Business School in New York.

US market takes online hit

The US essentially invented the shopping mall in the 1950s, and growth there has been about increased choice rather than glitz.

“The newer malls had more space,” Prof Cohen said. “They were bigger, had more parking facilities, typically tiered so the customer didn’t have to walk as far to the mall.

“They had more amenities, but not to the extent of places like Dubai, [where] it’s new and glitzy, it’s a luxury and it presents itself as a luxury hotel.”

In the US, there have been many reports of the struggles faced by shopping malls, hit by oversupply and, in recent times, the growth of online retail. The number of malls in the US is said to have fallen from 2,500 in the 1980s to around 700 now, with further decline likely.

“When you overbuild relative to available demand for customers, you face the spectre of a decline in productivity, which is what has [affected] hundreds and hundreds of US malls,” Prof Cohen said.

Could malls in the UAE, which also face the risk of business moving to the web, be set for the type of contraction seen in North America?

Experts back UAE malls to thrive

Town Square in Yas Mall drew enthusiastic crowds for Manchester City's Champions League triumph in June. Khushnum Bhandari / The National
Town Square in Yas Mall drew enthusiastic crowds for Manchester City's Champions League triumph in June. Khushnum Bhandari / The National

There are reasons to think that they could be more resilient, not least because malls in the Gulf are much more than places to shop.

“They are large indoor spaces where people can go during the summer months when the heat is too strong to even take a stroll outside,” Dr Laure Assaf, an assistant professor at New York University Abu Dhabi who researches mall culture, particularly among young people, said.

“This environmental factor is important in explaining the continuing success of malls in Gulf countries in general and in the UAE in particular.

“Shopping malls in the Gulf … can also be seen as public spaces where people go not only for shopping but for experiences like taking a stroll, meeting friends, going on a family outing.”

Another factor, Dr Assaf said, is that shopping malls are “a very integral part of the branding” of cities in the UAE.

“They’ve become very identified with the cities, very integrated to the form of urbanity that is being developed in the Gulf, and they’re also very central to the project of economic diversification,” she said.

“The sectors that governments have turned to are real estate, finance and tourism, and malls concentrate all of this urban development. They are large real estate properties that drive tourism.”

Among the malls set to open in future, Dubai Square, an Emaar development, will take the UAE mall experience to another level with an enormous roof and wide internal avenues.

Described as a 2.6 million square metre “indoor city”, it will face Dubai Creek Tower and will have 10,000 residential units, more than 1,500 hotel rooms and a similar amount of retail space to Dubai Mall.

In an echo of ski slope at Mall of the Emirates, Dubai Square will have an “Ice Adventure” centre alongside an art district and what is said to be the largest Chinatown in the Middle East.

Other parts of the Mena region beyond the Gulf are seeing the inauguration of new mega-malls, such as Egypt, where Mall of Egypt, which is owned and managed by Majid Al Futtaim, opened six years ago.

In its latest half-yearly results, released in August, the properties division of Majid Al Futtaim announced a 12 per cent increase in shopping malls footfall, with Mall of the Emirates recording its highest-ever figures for the first half of the year, well over 15 years after the venue opened.

“Tenant sales grew seven per cent, with UAE-based malls making the largest contribution,” the company said in a statement.

So, with more people visiting existing malls and with additional malls planned, the UAE’s love affair with the shopping mall, far from waning, appears to be growing ever stronger.

Dust and sand storms compared

Sand storm

  • Particle size: Larger, heavier sand grains
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Dust storm

  • Particle size: Much finer, lightweight particles
  • Visibility: Hazy skies but less intense
  • Duration: Can linger for days
  • Travel distance: Long-range, up to thousands of kilometres
  • Source: Can be carried from distant regions
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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 
Skewed figures

In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458. 

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

UAE currency: the story behind the money in your pockets
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How Alia's experiment will help humans get to Mars

Alia’s winning experiment examined how genes might change under the stresses caused by being in space, such as cosmic radiation and microgravity.

Her samples were placed in a machine on board the International Space Station. called a miniPCR thermal cycler, which can copy DNA multiple times.

After the samples were examined on return to Earth, scientists were able to successfully detect changes caused by being in space in the way DNA transmits instructions through proteins and other molecules in living organisms.

Although Alia’s samples were taken from nematode worms, the results have much bigger long term applications, especially for human space flight and long term missions, such as to Mars.

It also means that the first DNA experiments using human genomes can now be carried out on the ISS.

 

Global Fungi Facts

• Scientists estimate there could be as many as 3 million fungal species globally
• Only about 160,000 have been officially described leaving around 90% undiscovered
• Fungi account for roughly 90% of Earth's unknown biodiversity
• Forest fungi help tackle climate change, absorbing up to 36% of global fossil fuel emissions annually and storing around 5 billion tonnes of carbon in the planet's topsoil

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The specs

Engine: 5.0-litre V8

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Transmission: 10-speed auto

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KEY HIGHLIGHTS

Healthcare spending to double to $2.2 trillion rupees

Launched a 641billion-rupee federal health scheme

Allotted 200 billion rupees for the recapitalisation of state-run banks

Around 1.75 trillion rupees allotted for privatisation and stake sales in state-owned assets

How to apply for a drone permit
  • Individuals must register on UAE Drone app or website using their UAE Pass
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Kanguva
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The specs

AT4 Ultimate, as tested

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Directors: Carol Mansour and Muna Khalidi

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Rating: 4/5

Our family matters legal consultant

Name: Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

ESSENTIALS

The flights

Emirates flies from Dubai to Phnom Penh via Yangon from Dh2,700 return including taxes. Cambodia Bayon Airlines and Cambodia Angkor Air offer return flights from Phnom Penh to Siem Reap from Dh250 return including taxes. The flight takes about 45 minutes.

The hotels

Rooms at the Raffles Le Royal in Phnom Penh cost from $225 (Dh826) per night including taxes. Rooms at the Grand Hotel d'Angkor cost from $261 (Dh960) per night including taxes.

The tours

A cyclo architecture tour of Phnom Penh costs from $20 (Dh75) per person for about three hours, with Khmer Architecture Tours. Tailor-made tours of all of Cambodia, or sites like Angkor alone, can be arranged by About Asia Travel. Emirates Holidays also offers packages. 

Updated: September 04, 2023, 2:32 PM`