Dubai Duty Free

From Wikipedia, the free encyclopedia

For the horse race formerly known as Dubai Duty Free, see Dubai Turf.

Dubai Duty Free (DDF) is the company responsible for the duty-free operations at Dubai International Airport and Al Maktoum International Airport.

Founded in December 1983, DDF recorded first-year sales of US$20 million and has grown into one of the biggest travel retail operators in the world with sales turnover of US$2.029 billion in 2019.[1]

Sheikh Ahmed bin Saeed Al Maktoum is the president of Dubai Civil Aviation Authority and chairman of Dubai Duty Free.[citation needed] and Colm McLoughlin is the executive vice chairman and CEO.[citation needed] DDF is a subsidiary of the government-owned Investment Corporation of Dubai.[citation needed]

Foundation[]

Aer Rianta, the operating company behind the world's first duty free in Shannon Airport, was invited to present a proposal for the operations and management of a Duty Free operation at Dubai International Airport. Up until this point, the airport had been served by a number of retail concessions, basically stalls managed by traders from the city of Dubai. Presented to Sheikh Mohammed by director-general of Dubai Civil Aviation, Mohi-Din Binhendi, the proposal was accepted but with the caveat to make the duty free double the size of that proposed and to open it within six months.[2]

The duty-free, at the time planned to serve three million passengers a year, was funded with an $820,000 loan from the National Bank of Dubai. One of the first challenges faced by the ten-man Aer Rianta management team (which had signed a consultancy contract with Dubai Civil Aviation) was to negotiate the transfer of the existing concessions, which resulted in Dubai Duty Free acquiring their stocks at rates preferential to the shop owners.[3]

An advertising agency was appointed, coming up with the slogan, used to this day, 'Fly Buy Dubai'.[citation needed]

The duty free opened officially on 20 December 1983. At the end of the Aer Rianta consultancy contract, McLoughlin was 'made an offer I couldn't refuse' to stay and manage the new operation. Two of the original Aer Rianta team stayed with him.[3]

In 1985, Sheikh Ahmed bin Saeed Al Maktoum became chairman of Emirates Airline and the Department of Civil Aviation.[3]

Mohammad Bin Rashid Al Maktoum has been credited as the vision behind the Dubai Duty Free,[4] giving approval for the project doubling its size. [5] and approving major concepts. [6]

Operations[]

The ongoing expansion of Dubai International Airport was mirrored by expansion of the duty free operation and by 1988, 51 airlines used Dubai to service some 87 destinations, with a 4 million passenger throughput. Dubai Duty Free's takings rose from $44,000 on its first day's trading in December 1983 to $32 million annual sales in 1986. In 1987 it opened an arrivals duty-free shop and was taking some $200,000 a day. In 1989 Dubai Duty Free introduced its 'Finest Surprise' promotion, a 1,000 ticket raffle to win a luxury car. The promotion has run continuously since.[2] Passenger throughput at Dubai crossed 5 million in 1990, helping to drive turnover to $95 million but operations were badly affected by the invasion of Kuwait by Iraq. This was to ensure it took a further two years to cross the $100 million mark.[citation needed]

The opening of the Sheikh Rashid terminal at Dubai International Airport in 2000 was to see Dubai Duty Free's staff count rise to 900 and its floor space expand to 5,400 M2. Turnover in 2001 rose to $222 and in 2003, 20 years after it was established, turnover was $380 million.[3] The opening of Terminal 3 and Concourse 2 and 3 at Dubai International added some 17,000 M2 of retail space. It also drove the increase of warehousing and logistical space: from a small shed storing goods for sale in 1983, DDF now had a 27,000 M2 warehouse and 28,000 M2 trucking bays.[citation needed]

Dubai Duty Free has seen massive growth and development over the years and was named the single largest airport retailer in the world in terms of turnover, based on 2008–10[7] and 2013.[8] The retail operation covers 38,000 square metres of retail space at Dubai International Airport. Meanwhile, the Dubai Duty Free operation at Dubai World Central - Al Maktoum International Airport continues to do well and covers over 4,000 square metres.[citation needed] In the long term, the airport has capacity for over 160 million passengers and ultimately, the retail operation will cover some 80,000 square metres. Dubai Duty Free has won more 700 awards around the world.[citation needed]

Dubai Duty Free employs over 6,100 staff from 47 nationalities, including 25 of its original 100 staff recruited in 1983.[9] By 2025, it expects business to be in excess of US$3 billion a year, employing between 9,000 and 10,000 people.[10][11]

Dubai Duty Free has been named the largest airport retailer worldwide.[12] By 2008, it was making per day what it had in its entire first year. It pulled in over $2 billion in 2018,[13][14] and by 2019 was reportedly responsible for 11% of the country’s revenue. [15]

See also[]

References[]

  1. ^ "Dubai Duty Free sets record high as annual sales surge to US$2.029 billion". The Moodie Davitt Report. 2 January 2020.
  2. ^ Jump up to: a b Wilson, Graeme (2008). Fly Buy Dubai. UAE: Media Prima. p. 218. ISBN 9789948859437.
  3. ^ Jump up to: a b c d Wilson, Graeme (2008). Fly Buy Dubai. UAE: Media Prima. p. 511. ISBN 9789948859437.
  4. ^ Dobson, Alan (21 April 2017), "Open-skies and a fully globalized world market", A History of International Civil Aviation, Routledge, pp. 95–115, retrieved 31 August 2021
  5. ^ Dobson, Alan (21 April 2017), "Open-skies and a fully globalized world market", A History of International Civil Aviation, Routledge, pp. 95–115, retrieved 31 August 2021
  6. ^ Dobson, Alan (21 April 2017), "Open-skies and a fully globalized world market", A History of International Civil Aviation, Routledge, pp. 95–115, retrieved 31 August 2021
  7. ^ "Global DF&TR Sales 2011 year of data Generation" (PDF). vsnews.fr. Retrieved 4 September 2012.[permanent dead link]
  8. ^ "Dubai Duty Free Regains Travel Retail Top Spot". frontiermagazine.co.uk. Retrieved 17 December 2017.
  9. ^ "Dubai Duty Free Jobs". Dubai Overseas Filipino Workers. Retrieved December 2014. Check date values in: |accessdate= (help)
  10. ^ "Colm McLoughlin | Faces of Dubai".
  11. ^ "Dubai Duty Free Jobs". Dubai Overseas all Workers around the world. Retrieved April 2021. Check date values in: |accessdate= (help)
  12. ^ Sophia, Mary (16 October 2014). "Dubai Duty Free Named World's Largest Airport Retailer". Gulf Business. Retrieved 31 August 2021.
  13. ^ "Stellar sales: Dubai Duty Free revenues hit new high of US$2.015 billion in 2018". The Moodie Davitt Report. 2 January 2019. Retrieved 31 August 2021.
  14. ^ "Dubai Duty Free Named World's Largest Airport Retailer". Arabian Business.
  15. ^ "Dubai Duty Free sets record high as annual sales surge to US$2.029 billion". The Moodie Davitt Report. 2 January 2020. Retrieved 31 August 2021.

External links[]

Retrieved from ""