Economic Slowdown May Affect Dubai Mall

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(DUBAI, UAE) - Today is the beginning of weekend sales at Dubai Mall, so crowds are expected to fill the stores and food outlets ready to serve customers. In the UAE, the weekend is Friday and Saturday with Friday roughly equivalent to Sunday as a day for religious observance and family.

Dubai Mall's soft opening took place Tuesday afternoon, off hours for malls everywhere, and in a climate of some economic uncertainty. This weekend will give an indication how business may go from now into January. Holidays for some of the world's major religions usually promote shopping in this period.

Some 600 stores and restaurants are ready for business, roughly half of the total when Dubai Mall is at full capacity. However, some of the biggest names aren't opening this year.

Two historic department stores, the French Galeries Lafayette opening in February and US department store Bloomingdale's opening in 2010, will avoid the economic uncertainties of late 2008.

Built by Emaar Malls Group and part of the $20 billion Downtown Burj Dubai development, Dubai Mall is in the shadow of the Burj Dubai, the world's tallest building still not completed at 170 stories.

Mohamed Ali Alabbar, chairman, Emaar Properties, said, "The Dubai Mall is Dubai's tribute to the world of retail and leisure." He added, "Dubai Mall is, indeed, a confident affirmation of the strong economic fundamentals of the Dubai economy."
 
Emaar has been one of the major builders of Dubai, responsible for a series of developments that have helped make the emirate what it is today. Diversifying into retail is a new direction for the company.

Emaar has been listed on the Dubai Exchange since 2000 with the government of Dubai the largest shareholder with 32 percent of shares. Those shares have declined considerably over the past two months along with declines in most stock markets around the world.

It could be that Dubai will see less growth or even a decline in the next year or two in both retail and tourism, each fuelled by the other. But Al Alabbar and many other investors haven't started betting against Dubai.