The UAE’s retail sector is projected to grow at a compound annual growth rate (CAGR) of 5.4% through 2028, driven by a fundamental transformation in how shopping malls operate. Malls across the country are evolving beyond retail spaces into integrated lifestyle destinations that combine shopping with dining, leisure, wellness, and digital experiences.

While many global markets face declining mall footfall, the UAE is witnessing a resurgence in experiential retail, driven by changing consumer expectations and a growing expat population seeking elevated lifestyles.

In response, developers are redesigning malls with flexible layouts, immersive spaces, and integrated digital features.

A report by UAE-based luxury retail company Abra shows that 71% of consumers currently use digital tools in their shopping journeys, while 43% say technology enhances their in-store experience.

The surge in expat families has been particularly influential. As of 2025, the UAE has recorded an 88.5% increase in incoming expatriates, prompting malls to position themselves as immersive, family-friendly environments suited for indoor leisure and year-round engagement.

This appeal also extends to international visitors. Dubai welcomed 18.72 million tourists in 2024, marking a 9.15% increase from the previous year and reinforcing its status as a global family destination.

Urban development trends, such as mixed-use communities in Dubai Hills and Nad Al Sheba, reflect the country’s commitment to the “15-minute city” model, where essential services, including retail, are within close reach.

In this context, malls are expected to function as multifunctional community anchors, co-located with schools, parks, healthcare facilities, and co-working spaces.

Sustainability is also central to the sector’s future, aligning with the UAE’s Net Zero 2050 targets. Developers are incorporating eco-friendly materials and energy-efficient systems without compromising luxury or innovation.