👋 Good morning, Smashi Business Readers!

Today’s business roundup brings insights into the dynamic growth shaping the UAE and beyond. Dubai Duty Free inches closer to its $2 billion annual sales target, driven by booming perfume sales and record-breaking passenger traffic at DXB. E-commerce giant Noon is racing to dominate the region’s delivery landscape with bold investments and relentless ambition. Meanwhile, Dubai’s property market continues to shine, with house prices set to rise by 8% in 2025 amid an enduring supply shortage.

Let’s dive into the details.

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🌟 Dubai Duty Free Nears $2 Billion Sales Milestone Thanks to Perfume Boom

📰 What is it about?

• Dubai Duty Free (DDF) is on track to hit a record $2 billion in annual sales for 2024, reporting revenues of AED7.13 billion ($1.94 billion) in the first 11 months.

• November sales hit $205.7 million, making it the fifth-best month in DDF’s history, driven by strong perfume salesand holiday season demand.

• Key figures:

  • Perfume sales: $362 million (+10% YoY).

  • Gold sales: $194.57 million (+2% YoY).

  • Electronics: $134 million in revenue, ranking fifth.

• Despite challenges like shop refurbishments and softer sales in luxury fashion boutiques, daily sales records were set on November 30 ($8.46 million) and November 29 ($8.24 million).

💡 Why it matters?

• DDF's performance reflects Dubai’s resilience and growing importance as a global aviation and retail hub.

• Tourism Growth: With 68.6 million passengers passing through Dubai Airports in the first nine months of 2024 (+6.3% YoY), the strong sales showcase Dubai's ability to attract and serve an increasing number of travelers.

• Key Retail Driver: Perfume sales, up 10%, highlight the luxury goods sector’s role in driving retail growth, supporting Dubai's vision as a high-end shopping destination.

• Global Relevance: As the world’s busiest international airport, Dubai's passenger growth (+5.7% expected in 2024) supports its status as a critical global transit hub.

🔜 What’s next?

• December Surge: With December historically being a high-sales month (record: $219.9 million in December 2023), DDF is poised to cross the $2 billion mark with a final holiday rush.

• Refurbishment Upgrades: As shop upgrades in all arrival terminals complete, they could drive even higher sales in 2025.

• Sustainability of Growth: Continued passenger growth and diversification of product offerings, especially in perfumes and electronics, will likely ensure record-breaking years ahead.

• Global Leadership: DDF’s success reinforces Dubai’s position as a leader in luxury retail and tourism, setting benchmarks for other international hubs.

Abu Dhabi Business Week Sees Massive Participation as it Enters Day 3 Today

📰 What is it about?

• The inaugural Abu Dhabi Business Week (ADBW) kicked off with a dynamic lineup of events, including the Abu Dhabi Business Summit, Marketing Lab, Innovation XChange, and Business Exhibition Ecosystem.

• Hosted by the Abu Dhabi Chamber of Commerce and Industry (ADCCI) in collaboration with ADDED and ADIO, the event welcomed over 10,000 policymakers, executives, and officials.

• Key sessions included:

  • Economic Partnerships: Dr. Thani bin Ahmed Al Zeyoudi stressed building global economic collaborations.

  • Inspiring Leaders: Dr. Sara Sabry, David Coulthard, Clarence Seedorf, and Jo Malone shared personal and professional journeys.

  • Tech & Innovation: Mo Gawdat discussed AI’s transformative potential, while Microsoft and Khalifa University tackled edge computing in decision-making.

  • Entrepreneurial Insights: Industry pioneers like Magnus Olsson (Careem) and Elie Habib (Anghami) revealed strategies for scaling businesses.

  • Marketing & Branding: Randi Zuckerberg and other experts explored storytelling, digital transformation, and branding strategies.

💡 Why it matters?

• ADBW serves as a critical platform for connecting local innovators with global investors and policy leaders to advance Abu Dhabi’s position as a global business hub.

• Driving Innovation: With discussions on AI, edge computing, and digital transformation, the event highlights Abu Dhabi’s commitment to adopting cutting-edge technologies.

• Supporting Entrepreneurs: Sessions like “The First 100 Days” provide startups and SMEs actionable insights to scale sustainably in a competitive global market.

• Sustainability & Development: The focus on family businesses, cybersecurity, and industrial safety aligns with Abu Dhabi’s goals of long-term economic resilience.

🔜 What’s next?

• Events like Innovation XChange will deepen public-private sector cooperation, driving sustainable developmentinitiatives.

• Global Vision Execution: With ADBW’s foundation, Abu Dhabi is set to accelerate its vision of becoming a premier global business hub, leveraging insights from industry leaders and fostering impactful partnerships.

• Don't miss the final opportunities to engage, innovate, and collaborate! 🚀For more details and to register, please visit: adbusinessweek.com 

📈 Markets

🚀 Noon Edges Closer to Regional Leadership in E-Commerce and Delivery

📰 What is it about?

• Noon, founded by Mohamed Alabbar (also founder of Emaar), is on track to become the largest delivery and e-commerce company in the UAE and the MENA region.

• The company’s rapid expansion into food delivery reflects rising consumer demand for convenience, with Alabbar emphasizing Noon's "military precision" and unlimited investment to achieve its goals.

• Noon’s competitor, Talabat, recently priced its IPO at AED 1.60 per share, raising $2.04 billion in the largest tech IPO globally in 2024, highlighting the competitive nature of the sector.

💡 Why it matters?

• Noon’s rise is emblematic of the broader transformation in e-commerce and delivery services across the MENA region, fueled by digital adoption and urban convenience trends.

• Competition Drives Innovation: With Talabat’s record-breaking IPO and Noon’s expansion, the race for market leadership is intensifying, benefitting consumers with better service and innovation.

• Economic Impacts: Noon's success reflects the UAE’s progressive policies that foster a business-friendly environment, while also contributing to job creation and economic diversification.

• Global Relevance: The fierce competition between Noon and Talabat positions the MENA region as a hub for global tech innovation and investment.

🔜 What’s next?

• Noon’s unlimited investment strategy suggests further aggressive expansion into delivery sectors like groceries, logistics, and express services.

• Tech Advancements: Leveraging AI, logistics optimization, and enhanced user experiences will be key to maintaining its edge in the tech-enabled delivery market.

• Market Showdown: The rivalry with Talabat is likely to intensify, driving further price wars and service innovations, particularly in food delivery and logistics.

• IPO Potential?: With Talabat’s IPO success, Noon may consider a public listing to raise capital and accelerate growth across the region.

• Regional Leadership: As Noon approaches dominance, its strategies will set benchmarks for scaling businesses in emerging markets, shaping the MENA e-commerce landscape.

💭Quote of the day
“Do more than is required. What is the distance between someone who achieves their goals consistently and those who spend their lives and careers merely following? The extra mile.” – Gary Ryan Blair

🏠 Dubai Property Boom: Prices Set to Climb 8% in 2025 Amid Supply Shortages

📰 What is it about?

• Dubai’s property market continues its record-breaking trajectory, with house prices projected to rise by 8% in 2025, according to Knight Frank's latest report.

• Key statistics from 2024:

  • House prices surged 19.9% year-on-year, supported by relentless demand.

  • 47,269 property transactions in Q3 2024, the highest quarterly figure ever.

  • The total value of deals January–September exceeded AED 306.3 billion ($83.4 billion).

• Luxury properties are a standout, with nearly 1 in 5 homes now valued over $1 million.

💡 Why it matters?

• Supply Shortages Driving Growth:

  • The market faces a 30% decline in property listings and limited villa availability, with only 8,900 new villasexpected by the end of 2024.

  • A long-term housing shortfall is anticipated as demand outpaces supply, especially in luxury and prime segments.

• Investment Magnet:

  • Dubai’s appeal as a global property hub continues to grow, attracting ultra-high-net-worth individuals and expats.

  • The surge in luxury property sales reflects Dubai’s position as a lifestyle and investment destination.

• Economic Implications:

  • Rising property prices contribute to Dubai’s economic diversification and underscore its position as a global financial and real estate powerhouse.

  • However, macroeconomic risks, such as oil price volatility and global economic slowdowns, could temper growth.

🔜 What’s next?

• Slower Price Growth in 2025:

  • Price growth is expected to moderate to 5% for prime residential properties, signaling stabilization after years of rapid increases.

• Massive Development Plans:

  • Developers plan to deliver 300,000 homes by 2029, but delays could limit actual completions to 35,000 homes annually, keeping supply tight.

  • Apartments will dominate supply (80.1%), but villas will remain in high demand due to limited availability.

• Global Competition:

  • Cities like Riyadh are emerging as regional competitors, pushing Dubai to innovate and maintain its edge in luxury living and real estate development.

• Opportunities for Buyers and Investors:

  • Buyers may benefit from more balanced growth rates, while investors can capitalize on the enduring demand for luxury and off-plan properties.

  • Refurbished older homes in secondary markets present value-growth opportunities.

🔍In other news…

1. French President Emmanuel Macron’s state visit to Saudi Arabia led to major investment deals, boosting renewable energy and recycling projects.

2. Google has been matching employees donations to pro-Israeli charities in the US: Middle East Eye claims.

3. Saudi Arabia is raising the stakes in aviation! A third national airline is set to launch from Dammam in 2025, alongside new logistics zones and expanded public transport.

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