The UAE duty-free and travel retail market size reached USD 208.93 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 292.77 Million by 2033, exhibiting a growth rate (CAGR) of 3.82% during 2025-2033. Rising international passenger traffic, airport expansions (notably in Dubai and Abu Dhabi), high consumer spending power, increasing tourism, luxury brand presence, promotional pricing strategies, and digitalization of retail experiences within terminals are some of the factors contributing to the UAE duty-free and travel retail market share.
Report Attribute
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Key Statistics
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Base Year
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2024
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Forecast Years
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2025-2033
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Historical Years
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2019-2024
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Market Size in 2024 | USD 208.93 Million |
Market Forecast in 2033 | USD 292.77 Million |
Market Growth Rate 2025-2033 | 3.82% |
Sales Momentum Accelerating at Airport Retail
Retail activity in UAE airports has shown steady improvement, with recent months bringing strong performance across major categories. Shopper engagement is high, supported by consistent passenger traffic and elevated spending patterns. Activity typically peaks during holiday periods, but current momentum is extending beyond the usual seasonal surges. The steady rise in purchases points to growing confidence among travelers and a willingness to spend on premium and everyday items alike. Retailers are benefitting from refreshed store formats, curated product mixes, and favorable travel flows. This performance reflects broader shifts in consumer behavior within travel environments. The sustained pace seen so far this year suggests a healthy outlook and positions the sector for further gains through the remainder of the year. These factors are intensifying the UAE duty-free and travel retail market growth. For example, Dubai Duty Free recorded its best month of 2025 in May, hitting AED 724.7 Million (USD 198.5 Million) in sales, i.e., a 12.5% year-on-year rise. This follows April’s record of AED713 Million. May ranks as the second-highest sales month outside December in the retailer's 41-year history. Year-to-date revenue crossed AED 3.5 billion (USD 1 Billion), reflecting 6.5% growth, with strong performance across major product categories.
Expanding Payment Access through Digital Wallet Integration
Airport retailers in the UAE are embracing more flexible payment options to match evolving traveler preferences. A recent collaboration links retail operations with a vast network of global digital wallets, allowing visitors to pay using familiar apps from their home countries. This shift supports smoother transactions and reduces reliance on traditional cards or currency exchanges. As digital wallets gain ground in cross-border payments, retailers are positioning themselves to cater to a tech-savvy audience seeking speed and convenience. The integration reflects a broader move toward inclusive payment ecosystems that align with international consumer habits. It also reinforces the importance of seamless checkout experiences in enhancing overall customer satisfaction in busy, high-volume travel hubs. For instance, in February 2025, Dubai Duty Free partnered with TerraPay to allow travelers to pay using their home-country digital wallets. This move connects DDF to TerraPay’s network of 3.7 Billion wallets, enhancing payment flexibility across its retail operations. As digital wallets are set to account for 35% of global cross-border payments in 2025, the collaboration positions DDF to meet the growing demand for faster, more accessible digital payment options.
IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country and regional levels for 2025-2033. Our report has categorized the market based on product type and distribution channel.
Product Type Insights:
The report has provided a detailed breakup and analysis of the market based on the product type. This includes beauty and personal care, wines and spirits, tobacco, eatables, fashion accessories and hard luxury, and others.
Distribution Channel Insights:
A detailed breakup and analysis of the market based on the distribution channel have also been provided in the report. This includes airports, airlines, ferries, and others.
Regional Insights:
The report has also provided a comprehensive analysis of all the major regional markets, which include Dubai, Abu Dhabi, Sharjah, and others.
The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.
Report Features | Details |
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Base Year of the Analysis | 2024 |
Historical Period | 2019-2024 |
Forecast Period | 2025-2033 |
Units | Million USD |
Scope of the Report |
Exploration of Historical Trends and Market Outlook, Industry Catalysts and Challenges, Segment-Wise Historical and Future Market Assessment:
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Product Types Covered | Beauty and Personal Care, Wines and Spirits, Tobacco, Eatables, Fashion Accessories and Hard Luxury, Others |
Distribution Channels Covered | Airports, Airlines, Ferries, Others |
Regions Covered | Dubai, Abu Dhabi, Sharjah, Others |
Customization Scope | 10% Free Customization |
Post-Sale Analyst Support | 10-12 Weeks |
Delivery Format | PDF and Excel through Email (We can also provide the editable version of the report in PPT/Word format on special request) |
Key Questions Answered in This Report:
Key Benefits for Stakeholders: