Emaar’s mall footfall down 10 per cent due to Iran war, says Alabbar

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Footfall and retail sales at Emaar’s malls have fallen by about 10 per cent and hotel occupancy has dropped sharply as the Iran war weighs on tourism and consumer spending in…

Footfall and retail sales at Emaar’s malls have fallen by about 10 per cent and hotel occupancy has dropped sharply as the Iran war weighs on tourism and consumer spending in Dubai, Emaar founder Mohamed Alabbar said on Thursday.

“In our mall business, we are 10 per cent less in traffic. We were growing 10 per cent per year for the last five years,” Mr Alabbar told the Bloomberg Invest event in Dubai. He did not specify which malls were affected or over what period.

He also said retail was down about 10 per cent after growing by a similar percentage annually in recent years. The hospitality business was affected too, with occupancy levels falling to about 65 per cent from 80 per cent, he added.

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The war, which started in late February with attacks by the US and Israel on Iran, has affected sectors in the UAE including property, tourism and aviation.

The countries have yet to reach an agreement to end the war, now in its ninth month. However, US President Donald Trump has hinted that he is not planning to resume the bombing campaign as he faces calls to wind down the conflict after his party's defeat in last week's midterm elections.

Mr Alabbar said the company was not slowing down its development activity, with construction continuing and projects being delivered ahead of time.

“Development contractors are moving on time … material coming in … cost increasing about 5 per cent, which is OK,” he said.

However, the company is “holding back” on tendering a big tower until the regional situation cools down. He did not provide further details on the new project.

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