Mudon resident Monica Prasad‭, ‬a marketing professional and mother of two‭, ‬loves her biweekly visits to Dubai Hills Mall‭ ‬—‭ ‬her one-stop destination for everything‭, ‬be it shopping for the family‭, ‬watching a movie or a special dinner with friends‭. ‬“Dubai doesn’t have much street shopping‭, ‬so malls are the only places to go whether you need a shoe or a pen‭!‬”‭ ‬she laughs‭. ‬

“What I like about Dubai Hills is that it isn’t overwhelming in size‭, ‬has good brands and restaurants‭, ‬and draws a chic crowd‭.‬”‭ ‬Her visits usually last at least four hours‭ ‬—‭ ‬part shopping‭, ‬part socialising and part weekend routine‭.‬ For Prasad‭, ‬as for many in Dubai‭, ‬a mall is less a shopping venue and more a space for connection‭, ‬convenience and recreation‭. ‬

Now‭, ‬mall-goers like her have more reasons to rejoice‭. ‬The city’s mall-scape is undergoing a massive change with new developments on the anvil even as existing malls get an ambitious facelift‭. ‬

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The effect on tourism‭, ‬real estate‭, ‬retail and the economy aside‭, ‬what makes the trend interesting is the contrast‭: ‬while globally‭, ‬traditional malls are struggling to survive the onslaught of e-commerce‭, ‬in the UAE‭, ‬the reverse is true‭: ‬malls here are thriving‭, ‬drawing in more crowds than ever and cementing its status as a business and tourist destination‭. ‬

What to look forward to‭ ‬

So‭, ‬2025‭ ‬has indeed been the year of mall announcements‭, ‬refurbishments and expansions‭. ‬Here’s a quick lowdown on the key headliners‭:‬

‭‬The iconic Dubai Fountains‭, ‬adjoining the Dubai Mall‭, ‬reopened last month after its first phase of renovation‭. ‬Phase 2‭ ‬will have more innovative‭, ‬tech-led features promising to elevate the world’s largest dancing fountains‭. ‬

‭Earlier this year‭, ‬Dubai Mall developer Emaar unveiled The District‭, ‬a Dh1.5‭-billion expansion with a curated selection of 279‭ ‬new outlets‭. ‬

‭The Majid Al Futtaim‭ (‬MAF‭) ‬group’s ambitious Dh5‭-billion investment to transform Mall of the Emirates by 2027‭ ‬boasts of 20,000‭ ‬sq m of additional retail space‭, ‬an advanced IMAX experience‭, ‬an indoor-outdoor dining precinct‭, ‬a wellness club and‭ (‬the recently launched‭) ‬New Covent Garden Theatre and Pineapple Dubai‭. ‬

‭MAF will also launch a mall in the Ghaf Woods community‭ ‬—‭ ‬a forest-integrated place where you can shop‭, ‬dine and have fun amid lush natural landscapes‭. ‬

‭ ‬On the Palm‭, ‬Nakheel Mall rebranded itself as Palm Jumeirah Mall with the redeveloped section bringing a new line of international and homegrown fashion and dining brands for a more sophisticated experience‭.‬

‭ ‬The revamped malls also boast of new much-awaited international brands‭ ‬—‭ ‬Haribo at Dubai Festival City Mall‭, ‬Kim Kardashian’s SKIMS and American beauty giant Ulta Beauty at Mall of the Emirates and Primark at Dubai Mall‭, ‬City Centre Mirdif and MoE‭. ‬

‭ ‬In summer this year‭, ‬Dubai top malls hosted‭ ‬‘mallathons’‭, ‬turning these arenas into indoor walking and jogging tracks‭. ‬

‭ ‬In Abu Dhabi‭, ‬Yas Mall has expanded along with Yas Bay and Etihad Arena while Sharjah’s City Centre Al Zahia‭, ‬is now the largest mall in the Northern Emirates‭.‬

‭ ‬Even Al Ain has seen the development of Remal Mall‭. ‬Who said secondary cities didn’t demand large-scale retail‭? ‬

Significance of the Mall Economy‭ ‬

Malls have long been part of the economic and social fabric of the UAE‭. ‬As Joerg Meiser‭, ‬Partner at Monitor Deloitte in the Middle East‭, ‬puts it‭, ‬they’re not just commercial spaces but‭ ‬“strategic pillars in the city’s visitor economy‭.‬”

But the big change now is their evolved role‭, ‬being reimagined as immersive‭, ‬multi-sensory destinations that blend fashion‭, ‬food‭, ‬leisure and culture‭. ‬Analyst and Certified Board Director and Board Advisor‭, ‬Niranjan Gidwani‭, ‬calls this the natural evolution of a maturing market‭. ‬“Such large-scale projects re-establish Dubai’s stature as a global retail and lifestyle hub‭,‬”‭ ‬he says‭, ‬noting that these expansions reflect strong retail demand and a shift towards integrated-lifestyle experiences‭. ‬

It is no surprise then that malls contribute significantly to tourism and the wider economy‭. ‬In 2024‭, ‬the UAE welcomed more than‭ ‬28‭ ‬million international visitors‭, ‬with Dubai accounting for 18.72‭ ‬million overnight stays‭. ‬And tourists in the UAE‭ ‬—‭ ‬more than any other destinations‭ ‬—‭ ‬spend on retail activities‭. ‬According to Department of Economy and Tourism‭ (‬DET‭) ‬data‭, ‬an astounding 99‭ ‬per cent of visitors in‭ ‬2024‭ ‬made a stop at Dubai Mall alone‭. ‬Dubai Mall’s prominence is well documented‭; ‬it is‭, ‬after all‭, ‬the most visited place on earth for two consecutive years‭ (‬2023-2024‭), ‬with 111‭ ‬million visitors in 2024‭.‬

Beyond shopping‭, ‬the economic ripple effect runs deep‭. ‬“Malls also anchor real estate‭, ‬boost hospitality and create jobs‭,‬”‭ ‬Meiser says‭. ‬“This multiplier effect explains why investments in malls are often treated as investments in the city’s broader economic flywheel‭.‬”

For consumers‭, ‬malls have become a modern urban lifestyle statement in themselves‭. ‬Studies show that six in 10‭ ‬UAE residents visit a mall at least once a week‭, ‬with most spending between Dh100 to Dh500‭ ‬per trip‭. ‬Dining‭, ‬in particular‭, ‬is a major magnet‭. ‬With food and beverage as a key draw‭, ‬malls have been transformed‭, ‬as‭ ‬Gidwani says‭, ‬“into living extensions of communities‭ ‬—‭ ‬places that fulfil social‭, ‬recreational‭, ‬and experiential needs‭.‬”

The anchor for festivals and tourism‭ ‬

With malls serving as accessible‭, ‬all-in-one spaces offering multi-dimensional experiences‭, ‬they’ve become the perfect partners for Dubai’s tourism authorities‭. ‬

Mohamad Feras‭, ‬AVP Retail‭ & ‬Strategic Alliances at Dubai Festivals and Retail Establishment‭ (‬DFRE‭), ‬explains how the department’s partnerships with malls go far beyond retail‭. ‬“Malls are a cornerstone of Dubai’s tourism appeal‭; ‬they are iconic landmarks that shape how visitors experience the city‭. ‬For many travellers‭, ‬a visit to Dubai isn’t complete without spending time at our malls‭, ‬which offer everything from luxury fashion and global dining to indoor ski slopes‭, ‬aquariums‭, ‬art installations‭, ‬and seasonal experiences‭. ‬So they’re central to how we shape Dubai’s identity as a global shopping and lifestyle destination‭,‬”‭ ‬he says‭.‬

These collaborations are meticulously structured‭ ‬—‭ ‬from joint planning sessions to thematic alignment and promotional rollouts‭ ‬—‭ ‬ensuring every campaign delivers a citywide buzz‭. ‬So whether it’s exclusive deals during Dubai Shopping Festival‭ (‬DSF‭) ‬and Dubai Summer Surprises‭ (‬DSS‭), ‬12-hour flash sales‭, ‬Ramadan-themed activations or prize-led promotions‭, ‬the synergy between DFRE and the malls is what brings Dubai’s retail calendar to life‭. ‬The impact‭, ‬says Feras‭, ‬is two-fold‭. ‬“We support the retail economy by driving consistent footfall and sales uplift‭, ‬while also strengthening Dubai’s positioning as a dynamic hotspot where something exciting is always happening‭.‬”

According to the 2024‭ ‬DET Annual Visitor Survey‭, ‬77 per cent of travellers came for leisure‭, ‬with average stays of 10‭ ‬days and strong bucket-list motivations‭. ‬Developers are therefore integrating immersive anchors‭, ‬curated dining‭, ‬live events and seamless digital experiences‭. ‬“The result is higher dwell time‭, ‬higher cross-category spend‭, ‬and a durable rationale for multi-year expansion‭,‬”‭ ‬says Meiser‭. ‬“Seasonal campaigns like DSF and DSS further boost consumption and traffic‭. ‬These expansions‭, ‬therefore‭, ‬are less about capacity‭ ‬and more about reinforcing the role of malls as full-day destinations that integrate retail‭, ‬events‭, ‬technology and lifestyle in‭ ‬one journey‭.‬”

The results speak for themselves‭. ‬The last DSS saw a 110‭ ‬per cent increase in average consumer spending between June 27‭ ‬and August 31‭. ‬Over 1,200‭ ‬winners took home prizes worth more than Dh20‭ ‬million through raffles and retail promotions with over 1,050‭ ‬brands at 3,800‭ ‬retailers participating in the campaign‭. ‬

The rise of community malls‭ ‬

While size does matter‭, ‬the scene also offers a quieter revolution closer to home‭ ‬—‭ ‬the rise of community malls‭.‬

The big players focus on large-scale expansions but it’s the smaller neighbourhood malls that are transforming the areas they serve‭. ‬As Gidwani points out‭, ‬“Smaller malls like Nad Al Sheba and City Centre Shindagha are increasingly impactful in boosting the real estate appeal and community living of their surrounding areas‭.‬”

Nad Al Sheba mall‭ ‬—‭ ‬a 500,000‭ ‬sq ft mixed-use destination with over 100‭ ‬stores‭, ‬wellness facilities‭, ‬padel courts‭, ‬restaurants and supermarkets‭ ‬—‭ ‬is a prime example‭. ‬Along with The Square in Nad Al Sheba Gardens and DxBike in Meydan‭, ‬it has not only enhanced real estate values but also made the neighbourhood self-sufficient‭. ‬

For residents‭, ‬such community malls bring daily convenience closer to home‭. ‬Monika Prasad‭, ‬for instance‭, ‬often heads to Ranches‭ ‬Souk 2‭ ‬near her house in Mudon‭. ‬“The restaurants are great and it has all the basics that serve my needs‭,‬”‭ ‬she says‭.‬

Developers are taking note‭. ‬Projects like the Dh210‭ -million Sobha Hartland Community Mall are designed around the idea of local‭ ‬connection and quality of life‭. ‬Co-chairman of Sobha Group‭, ‬Ravi Menon‭, ‬states that the goal is to create‭ ‬“community-focused integrated spaces”‭. ‬

How Dubai ducks the e-commerce wave‭ ‬

All these efforts have had an unexpected global impact‭. ‬While it was assumed‭ ‬—‭ ‬quite rightly‭ ‬—‭ ‬that e-commerce would wipe out brick-and-mortar establishments‭, ‬Dubai has proved otherwise‭. ‬Globally‭, ‬e-commerce accounted for‭ ‬just over 20‭ ‬per cent of retail sales but the reason why the city’s malls ducked the trend lies in their‭ ‬“differentiated value proposition‭.‬”‭ ‬“Malls do not see online channels as a threat but rather‭, ‬as an enabler‭,‬”‭ ‬says Meiser‭. ‬“Many retailers operate on a‭ ‬‘Showrooming model’‭. ‬Visitors experience the product in store‭, ‬but delivery happens via e‑commerce‭, ‬so shopping integrates seamlessly into a day out‭. ‬Events like DSF and DSS amplify traffic‭, ‬creating further spikes in‭ ‬retail activity that online alone cannot replicate‭. ‬For residents‭, ‬malls provide a climate‑controlled‭ ‬‘third place’‭ ‬for socialising‭, ‬while tourists include mall visits into their travel itineraries‭,‬”‭ ‬he says‭. ‬

‭ ‬Gidwani agrees‭, ‬arguing that strategic investments in world-class infrastructure and retail innovation has created an ecosystem‭ ‬where the physical and digital exist harmoniously‭. ‬“The city’s seamless logistics‭, ‬digital payments‭, ‬and hybrid shopping models‭ (‬like click-and-collect‭) ‬enhance convenience while preserving‭ ‬the appeal of physical spaces‭. ‬This allows malls to remain vital hubs even amid the e-commerce growth‭,‬”‭ ‬he says‭. ‬Meiser adds that the threat from e-commerce does not apply to malls in Dubai because here the malls have moved up the‭ ‬value chain‭. ‬“From places to buy‭, ‬they are places to be‭!‬”‭ ‬he says‭. ‬

The risks and challenges‭ ‬

By all means‭, ‬the mall economy appears to be booming but sustaining this growth is no easy task‭. ‬Developers have to continuously‭ ‬innovate to keep driving footfalls‭. ‬Then there is the other side of the glam‭: ‬managing the high energy consumption and water use‭, ‬addressing the environmental impact and ensuring effective waste management to meet Dubai’s zero landfill targets‭. ‬“While developers are beginning to integrate smart energy-efficient systems‭, ‬green building designs‭, ‬and circular waste practices‭, ‬balancing technological innovation with sustainable operations and having an effective plan to handle slowdown phases‭, ‬need to‭ ‬be in place‭,‬”‭ ‬warns Gidwani‭. ‬

For Meiser‭, ‬the key challenge is how malls manage the end-to-end victory in three stages‭ ‬—‭ ‬pre-visit‭, ‬in-visit and post-visit‭. ‬In the first stage‭, ‬the risk is that of indivisibility where most retailers identify only 15-27‭ ‬per cent of their visitors‭. ‬“This makes true personalisation impossible‭,‬”‭ ‬he says‭. ‬

Orchestration is the challenge in the in-visit stage where parking‭, ‬wayfinding‭, ‬tenant coordination and F&B all add up to the quality of the visit‭. ‬Finally‭, ‬the risk in the post-visit stage is that of disconnection‭. ‬“Too often‭, ‬the relationship ends when the visitor leaves‭. ‬Deloitte’s‭ ‬‘Future of Shopping Malls’‭ ‬study shows that malls which establish Visitor Experience Centres or hubs that manage feedback‭, ‬loyalty‭, ‬and digital engagement‭ ‬achieve 20-40‭ ‬per cent higher dwell times and 25-35‭ ‬per cent increases in repeat visits‭,‬”‭ ‬says Meiser‭. ‬His prediction‭: ‬The next phase of growth will be determined not by the size of a mall‭, ‬but by how effectively it orchestrates Visitor Experience‭. ‬“For example‭, ‬Deloitte Visitor Experience Framework suggests leveraging data enabled by AI to analyse VX‭ ‬across all the touchpoints to understand satisfaction‭, ‬identify pain points and recommend solutions‭. ‬Those who get this right will turn malls into ecosystems people actively choose and return to‭.‬”‭ ‬

The mall of the future‭ ‬

Gidwani‭, ‬on the other hand‭, ‬looks at the larger picture‭. ‬The Mall of the Future in Dubai‭, ‬he says‭, ‬will be an immersive‭, ‬multi-sensory lifestyle destination that blends retail‭, ‬dining‭, ‬wellness‭, ‬culture and entertainment with cutting-edge technology‭. ‬“These will be malls that integrate AI-powered personalisation‭, ‬AR for immersive shopping experiences‭, ‬smart IoT enabled environments‭, ‬contactless payments and safety along with robotics and digital concierges‭. ‬Hybrid‭ ‬“phygital”‭ ‬shopping models will blur the lines between online and offline retail‭,‬”‭ ‬he predicts‭. ‬

Going by the developments‭, ‬we might just be a few years into this future‭. ‬

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