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.

The years Ramadan fell in May

1987

1954

1921

1888

The burning issue

The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.

Part three: an affection for classic cars lives on

Read part two: how climate change drove the race for an alternative 

Read part one: how cars came to the UAE

The burning issue

The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE. 

Read part four: an affection for classic cars lives on

Read part three: the age of the electric vehicle begins

Read part two: how climate change drove the race for an alternative 

SPECS
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MATCH INFO

Champions League quarter-final, first leg

Ajax v Juventus, Wednesday, 11pm (UAE)

Match on BeIN Sports

UAE currency: the story behind the money in your pockets
The%20specs
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Red flags
  • Promises of high, fixed or 'guaranteed' returns.
  • Unregulated structured products or complex investments often used to bypass traditional safeguards.
  • Lack of clear information, vague language, no access to audited financials.
  • Overseas companies targeting investors in other jurisdictions - this can make legal recovery difficult.
  • Hard-selling tactics - creating urgency, offering 'exclusive' deals.

Courtesy: Carol Glynn, founder of Conscious Finance Coaching

The five pillars of Islam

1. Fasting

2. Prayer

3. Hajj

4. Shahada

5. Zakat 

The burning issue

The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.

Read part three: the age of the electric vehicle begins

Read part two: how climate change drove the race for an alternative 

Read part one: how cars came to the UAE

Company%20profile
%3Cp%3EName%3A%20Tabby%3Cbr%3EFounded%3A%20August%202019%3B%20platform%20went%20live%20in%20February%202020%3Cbr%3EFounder%2FCEO%3A%20Hosam%20Arab%2C%20co-founder%3A%20Daniil%20Barkalov%3Cbr%3EBased%3A%20Dubai%2C%20UAE%3Cbr%3ESector%3A%20Payments%3Cbr%3ESize%3A%2040-50%20employees%3Cbr%3EStage%3A%20Series%20A%3Cbr%3EInvestors%3A%20Arbor%20Ventures%2C%20Mubadala%20Capital%2C%20Wamda%20Capital%2C%20STV%2C%20Raed%20Ventures%2C%20Global%20Founders%20Capital%2C%20JIMCO%2C%20Global%20Ventures%2C%20Venture%20Souq%2C%20Outliers%20VC%2C%20MSA%20Capital%2C%20HOF%20and%20AB%20Accelerator.%3Cbr%3E%3C%2Fp%3E%0A
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  • Premier League-standard football pitch
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  • Specialist robotics and science laboratories
  • AR and VR-enabled learning centres
  • Disruption Lab and Research Centre for developing entrepreneurial skills
COMPANY PROFILE
Name: ARDH Collective
Based: Dubai
Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
Sector: Sustainability
Total funding: Self funded
Number of employees: 4
UAE currency: the story behind the money in your pockets
The bio

Studied up to grade 12 in Vatanappally, a village in India’s southern Thrissur district

Was a middle distance state athletics champion in school

Enjoys driving to Fujairah and Ras Al Khaimah with family

His dream is to continue working as a social worker and help people

Has seven diaries in which he has jotted down notes about his work and money he earned

Keeps the diaries in his car to remember his journey in the Emirates

The specs
  • Engine: 3.9-litre twin-turbo V8
  • Power: 640hp
  • Torque: 760nm
  • On sale: 2026
  • Price: Not announced yet
Conflict, drought, famine

Estimates of the number of deaths caused by the famine range from 400,000 to 1 million, according to a document prepared for the UK House of Lords in 2024.
It has been claimed that the policies of the Ethiopian government, which took control after deposing Emperor Haile Selassie in a military-led revolution in 1974, contributed to the scale of the famine.
Dr Miriam Bradley, senior lecturer in humanitarian studies at the University of Manchester, has argued that, by the early 1980s, “several government policies combined to cause, rather than prevent, a famine which lasted from 1983 to 1985. Mengistu’s government imposed Stalinist-model agricultural policies involving forced collectivisation and villagisation [relocation of communities into planned villages].
The West became aware of the catastrophe through a series of BBC News reports by journalist Michael Buerk in October 1984 describing a “biblical famine” and containing graphic images of thousands of people, including children, facing starvation.

Band Aid

Bob Geldof, singer with the Irish rock group The Boomtown Rats, formed Band Aid in response to the horrific images shown in the news broadcasts.
With Midge Ure of the band Ultravox, he wrote the hit charity single Do They Know it’s Christmas in December 1984, featuring a string of high-profile musicians.
Following the single’s success, the idea to stage a rock concert evolved.
Live Aid was a series of simultaneous concerts that took place at Wembley Stadium in London, John F Kennedy Stadium in Philadelphia, the US, and at various other venues across the world.
The combined event was broadcast to an estimated worldwide audience of 1.5 billion.

The five pillars of Islam
THE SIXTH SENSE

Starring: Bruce Willis, Toni Collette, Hayley Joel Osment

Director: M. Night Shyamalan

Rating: 5/5

While you're here
Jetour T1 specs

Engine: 2-litre turbocharged

Power: 254hp

Torque: 390Nm

Price: From Dh126,000

Available: Now

The specs: 2019 Mercedes-Benz C200 Coupe


Price, base: Dh201,153
Engine: 2.0-litre turbocharged four-cylinder
Transmission: Nine-speed automatic
Power: 204hp @ 5,800rpm
Torque: 300Nm @ 1,600rpm
Fuel economy, combined: 6.7L / 100km

UAE currency: the story behind the money in your pockets
The specs

AT4 Ultimate, as tested

Engine: 6.2-litre V8

Power: 420hp

Torque: 623Nm

Transmission: 10-speed automatic

Price: From Dh330,800 (Elevation: Dh236,400; AT4: Dh286,800; Denali: Dh345,800)

On sale: Now

Dubai works towards better air quality by 2021

Dubai is on a mission to record good air quality for 90 per cent of the year – up from 86 per cent annually today – by 2021.

The municipality plans to have seven mobile air-monitoring stations by 2020 to capture more accurate data in hourly and daily trends of pollution.

These will be on the Palm Jumeirah, Al Qusais, Muhaisnah, Rashidiyah, Al Wasl, Al Quoz and Dubai Investment Park.

“It will allow real-time responding for emergency cases,” said Khaldoon Al Daraji, first environment safety officer at the municipality.

“We’re in a good position except for the cases that are out of our hands, such as sandstorms.

“Sandstorms are our main concern because the UAE is just a receiver.

“The hotspots are Iran, Saudi Arabia and southern Iraq, but we’re working hard with the region to reduce the cycle of sandstorm generation.”

Mr Al Daraji said monitoring as it stood covered 47 per cent of Dubai.

There are 12 fixed stations in the emirate, but Dubai also receives information from monitors belonging to other entities.

“There are 25 stations in total,” Mr Al Daraji said.

“We added new technology and equipment used for the first time for the detection of heavy metals.

“A hundred parameters can be detected but we want to expand it to make sure that the data captured can allow a baseline study in some areas to ensure they are well positioned.”

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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.

The specs: 2018 Volkswagen Teramont

Price, base / as tested Dh137,000 / Dh189,950

Engine 3.6-litre V6

Gearbox Eight-speed automatic

Power 280hp @ 6,200rpm

Torque 360Nm @ 2,750rpm

Fuel economy, combined 11.7L / 100km

UAE currency: the story behind the money in your pockets
Washmen Profile

Date Started: May 2015

Founders: Rami Shaar and Jad Halaoui

Based: Dubai, UAE

Sector: Laundry

Employees: 170

Funding: about $8m

Funders: Addventure, B&Y Partners, Clara Ventures, Cedar Mundi Partners, Henkel Ventures

The specs

Engine: 3.0-litre 6-cyl turbo

Power: 435hp at 5,900rpm

Torque: 520Nm at 1,800-5,500rpm

Transmission: 9-speed auto

Price: from Dh498,542

On sale: now

COMPANY%20PROFILE
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The years Ramadan fell in May

1987

1954

1921

1888

The specs
 
Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
Torque: 580Nm at 1,900-4,800rpm
Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)

The Dictionary of Animal Languages
Heidi Sopinka
​​​​​​​Scribe

The bio

Job: Coder, website designer and chief executive, Trinet solutions

School: Year 8 pupil at Elite English School in Abu Hail, Deira

Role Models: Mark Zuckerberg and Elon Musk

Dream City: San Francisco

Hometown: Dubai

City of birth: Thiruvilla, Kerala

What the law says

Micro-retirement is not a recognised concept or employment status under Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations (as amended) (UAE Labour Law). As such, it reflects a voluntary work-life balance practice, rather than a recognised legal employment category, according to Dilini Loku, senior associate for law firm Gateley Middle East.

“Some companies may offer formal sabbatical policies or career break programmes; however, beyond such arrangements, there is no automatic right or statutory entitlement to extended breaks,” she explains.

“Any leave taken beyond statutory entitlements, such as annual leave, is typically regarded as unpaid leave in accordance with Article 33 of the UAE Labour Law. While employees may legally take unpaid leave, such requests are subject to the employer’s discretion and require approval.”

If an employee resigns to pursue micro-retirement, the employment contract is terminated, and the employer is under no legal obligation to rehire the employee in the future unless specific contractual agreements are in place (such as return-to-work arrangements), which are generally uncommon, Ms Loku adds.

England's all-time record goalscorers:
Wayne Rooney 53
Bobby Charlton 49
Gary Lineker 48
Jimmy Greaves 44
Michael Owen 40
Tom Finney 30
Nat Lofthouse 30
Alan Shearer 30
Viv Woodward 29
Frank Lampard 29

The years Ramadan fell in May

1987

1954

1921

1888

At Eternity’s Gate

Director: Julian Schnabel

Starring: Willem Dafoe, Oscar Isaacs, Mads Mikkelsen

Three stars

F1 The Movie

Starring: Brad Pitt, Damson Idris, Kerry Condon, Javier Bardem

Director: Joseph Kosinski

Rating: 4/5

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