The GCC airport market is projected to grow at a 9.5% compound annual growth rate (CAGR) from 2024 to 2032, driven by the thriving tourism industry that increases foot traffic across airports and duty-free zones. This growth aligns with insights from Abra, a leading luxury retail fit-out firm in the MENA region.
Dubai’s aviation sector, a cornerstone of the emirate’s economy, is expected to account for 29% of GDP by 2030, up from 27% in 2023. A significant contributor to this expansion is the $35 billion passenger terminal at Al Maktoum International Airport (DWC), anticipated to generate $3 billion annually in retail sales. This development underscores Dubai’s ambition to solidify its position as a premier global aviation hub through major infrastructure and innovation investments.
Abra highlights the GCC’s airport retail sector as undergoing exceptional growth, spurred by rising passenger volumes, increased tourism, and substantial investments in airport infrastructure. The UAE and Saudi Arabia are spearheading this surge, with retail sales forecasts of $161.40 billion and $139.10 billion, respectively, by 2028.
Abra is strategically placed to leverage these opportunities, aiming to transform airport retail into iconic luxury destinations. Over the past three years, the company has completed more than 200 projects across 21 airports, specializing in fragrance, beauty, confectionery, liquor, and fashion. Abra adeptly manages industry challenges, including security protocols, material specifications, and health and safety requirements, to deliver world-class luxury retail environments that merge aesthetics with operational efficiency.
Anand Kumar, Managing Director of Abra, stated: “Airports are evolving into dynamic retail destinations, serving as global showcases for luxury brands. In the GCC, this transformation is particularly notable, with airports incorporating expansive retail areas that rival traditional shopping malls. Dubai International Airport (DXB) is set to handle a record 91.8 million passengers in 2024, marking an 8% increase from the previous year and reflecting the strength of the region’s aviation growth.”
Kumar further noted: “This transformation positions GCC airports among global leaders in luxury retail, offering immersive brand experiences and lavish boutiques that leave lasting impressions on travelers.”
Abra plays a crucial role in shaping this evolution, redefining airport retail landscapes at major airports in 21 countries across Europe, Asia, and Africa, including the UAE, Saudi Arabia, Turkey, India, and Egypt. Their extensive portfolio, spanning fragrance, beauty, confectionery, and fashion, ensures that luxury brands engage with travelers at every touchpoint.
Modern airports have become more than transit hubs—they are lifestyle destinations featuring luxury retail, dining, and entertainment, providing travelers with enriched experiences beyond their journeys.
