(MENAFN- Khaleej Times)

Skims is finally getting a physical home in Dubai. By the end of the year, shoppers will be able to walk into the Mall of the Emirates (MoE) and try on the brand's bestselling shapewear instead of ordering it online. However, the real story isn't about Kim Kardashian. It's about why so many global brands make their first move into the Middle East in the UAE.

The choice of Dubai isn't accidental. It has become the testing ground for international retail, and the reasons go far beyond hype. The MoE store will be Skims' first brick-and-mortar Middle East location, which is part of a broader Europe, the Middle East and Africa (EMEA) expansion that began with pop-ups in London and Amsterdam. The new store opening is part of a Dh5 billion redevelopment strategy by Majid Al Futtaim to add 20,000 square metres of retail space and 100 new stores to MoE.

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In a statement, Khalifa Bin Braik, chief executive officer of Majid Al Futtaim Asset Management, said:“This transformation goes beyond physical expansion - it's about creating new ways for people to connect, unwind, and be inspired, all in one destination... two decades ago, Mall of the Emirates set a new benchmark for retail and entertainment in the region. Today, we're building on that legacy with a bold investment that redefines what a mall can be.”

This expansion project will also notably bring in Primark, the Irish fast-fashion giant opening in Dubai after its regional debut in Kuwait, and Ulta Beauty, the US makeup and beauty retailer making its first move into the Middle East. But beyond traditional retail, many luxury brands have notably taken the leap.

Jacquemus chose Dubai Mall for its regional debut last year. Jil Sander just opened its first-ever Dubai flagship in MoE in April as part of a regional expansion strategy by its parent, OTB Group. Balenciaga also opened its biggest boutique, a 500-square-metre showspace, in the same mall early last year to showcase couture items straight from the runway, before opening a similar concept in Saudi Arabia's Solitaire Mall in Riyadh early this year.

These headliner openings can be attributed to the UAE's reputation for wealth given it's a hub for rich individuals with major purchasing power. But, surprisingly, international visitors drive much of the spend. Tourists spent nearly Dh660 billion last year, according to Dubai Tourism stats reported by GMI Research. When lined up with foot traffic, it clicks. Dubai Mall drew more than 111 million shoppers last year, a number that makes clear why global brands are betting on the city as a gateway into the Middle East retail market. Naturally, malls want a share of that footfall too, which is why they're racing to bring in new names.“Many international brands view the mall not just as a point of sale, but as a showcase destination that strengthens their global presence,” the Mall of Emirates media team wrote told wknd.“MoE continues to attract strong demand from international retailers, many of whom choose it as their entry point into the Middle East. This demand is driven by several key factors.”

The first stop

The mix of steady tourist traffic, luxury flagships, and entertainment keeps footfall high and makes it a strategic first stop, they explained.

Máire Morris, founder of the Dubai-based consultancy Morris Global Consulting, which advises brands on expansion across Europe, the GCC, and Asia, said:“The thriving tourism ecosystem attracts millions of visitors annually, exposing international brands to a diverse global audience beyond just local residents, effectively making a UAE storefront a global showcase.” A whitepaper by the Business of Fashion (BOF) echoes this. Not only are global brands expanding in Dubai to tap its fast-growing consumer base and the wider Gulf market, but the UAE apparel sector is expected to grow 5 per cent annually through 2030, outpacing global growth of 3.7 per cent, according to both BOF and Euromonitor. BOF analysts also found that Dubai's fashion industry appears to be more resilient despite wider market uncertainty.

All of that helps explain why Dubai keeps setting the stage for global retail, and why strategy now goes far beyond square footage or sales. As Tim Fish, founder of Multi-Media Middle East, put it in a LinkedIn post:“Skims - the shapewear brand - is opening its first Middle East store in Dubai's Mall of the Emirates. But this isn't just about retail. Co-founder Jens Grede says they're trying to build the 'Apple stores of apparel.' That tells you everything... And Dubai, once again, is the testing ground.”

Even as retailers eye the wider Gulf and look to markets like Saudi Arabia, Kuwait, and Qatar, the UAE's consumer base stands out for its tastes and spending habits, Morris explained.“UAE consumers are highly discerning, brand-aware, and global in their mindset, yet they maintain a strong sense of regional identity. Their spending habits are characterised by a strong inclination towards luxury, innovation, and exclusive experiences,” she said.“They exhibit a significant appetite for variety and expect high-quality products and services, often being early adopters of global trends. This differs from some regional peers, who may have different purchasing priorities or a less immediate embrace of international styles.”

The BOF whitepaper cites a d3 x BoF Insights survey that revealed nearly 60 per cent of high earners, or those making more than $100,000 (Dh367,249) a year, said they shop abroad for a better mix of brands and more unique experiences. However, given the volume of demand, BOF experts warn that simply adding more stock isn't enough. The UAE's shoppers come from hundreds of nationalities, and while half of the respondents said local fashion caters to different lifestyles, the real gains go to global brands that adapt assortments to regional tastes. That could mean offering more modest options alongside core collections. Demand is especially strong among younger shoppers: about a third of those aged 18 to 24 want more traditional styles like abayas and kaftans, and those under 34 are the most in favour of modest fashion overall. Some labels, like Dolce & Gabbana, with its 2016 abaya and hijab line, have tested this, but the survey suggests there's still a gap.

“A common misstep is treating the 'Middle East' as a monolithic market, failing to account for the distinct cultural nuances and consumer behaviours within the UAE, which really do vary even from city to city,” Morris said.“Retailers often underestimate the importance of genuine localisation, from product assortments such as modest wear and Ramadan collections, to marketing strategies such as Arabic language content, and local and influencer partnerships.” She explained that overlooking these details can backfire, with consumers quick to spot when a brand hasn't done its homework. The retailers that succeed, she said, are the ones that treat the UAE as a distinct market rather than a carbon copy of elsewhere, by investing in localised product drops, tailoring campaigns to the rhythm of the local calendar, and working with influencers who resonate on the ground.

Morris stressed that brands willing to adapt can turn these challenges into an advantage.“Beyond direct sales, a first UAE store provides international brands with immense visibility and credibility, particularly within the luxury segment. It also serves as an excellent testbed for new concepts, product lines, and experiential formats, allowing brands to gauge market reception and adapt strategies before expanding further.”

The pull towards the UAE goes beyond foot traffic and consumer spending habits though.“The government's proactive approach to attracting foreign investment and fostering a business-friendly environment makes it an appealing entry point into the wider Middle East market,” Morris explained. In 2020, the UAE scrapped the rule that required a local partner to own 51 per cent of mainland companies, giving foreign investors full control. More than 40 free zones also offer 100 per cent ownership and allow profits to be repatriated without restrictions. In 2023, the government formally launched the Ministry of Investment to streamline approvals and bring in more foreign investment.

Similarly, other countries in the Gulf have enacted rulings to do the same. Saudi Arabia has allowed for 100 per cent foreign ownership in wholesale and retail since 2016, and Qatar offers a similar setup in its free zones, where international firms can fully own their businesses and repatriate profits, backed by tax breaks and other incentives.

AlixPartners' 2025 Global Consumer Outlook lists the UAE and Saudi Arabia as two (out of nine) countries set for a net increase in consumer spending for 2025. This has forged a path for the Gulf as a battleground for global and luxury retail, but for now, the UAE still has the edge.

Dubai and Abu Dhabi topped Savills' Dynamic Wealth Index, with the UAE attracting 6,700 new wealthy residents last year, more than any other country. That kind of inflow, combined with Dubai's infrastructure, tourism bubble, and transient worker population, is why so many brands still choose to launch in the UAE first, before expanding into the MENA market.

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