Dubai: The retail trade in Dubai is becoming "elite," the Dubai Chamber of Commerce and Industry (DCCI) said.

The DCCI said both wholesalers and retailers are heavily involved in selling branded products and non-branded goods were losing in the city's changing retail landscape.

The DCCI said its findings were based on a survey of 259 companies that are involved in wholesale and retail activities in the emirate.

About 40 per cent of the companies were wholesalers and the rest were retailers.

"Survey results indicate that Dubai trade activities are gradually heading towards creating an elitist market. The generic products market is suffering from fierce competition from branded products," it said, calling on manufacturers of generic products to "improve quality and create awareness through advertising and promotion."

Glitzy shopping malls form a key part of Dubai's ongoing construction boom and millions of square feet of retail space is being created as part of major new real estate developments.

Fifteen per cent of Dubai's retailers are engaged in selling household articles, appliances and furniture, while those trading textiles, clothing and footwear represent 13 per cent of the companies, the DCCI said.

Lack of clarity

Among wholesalers, 20 per cent were involved in the textiles, clothing and footwear businesses, followed by 16 per cent trading in household articles, appliances and furniture.

Eleven per cent were involved in trading motor vehicles, bikes, spare parts and accessories, while 10 per cent accounted for construction material.

Forty-seven per cent wholesalers reported their annual sales to be in excess of Dh5 million against 30 per cent for the retail category.

Wholesalers received 61 per cent of their annual sales through exports and re-exporters.

"A lack of clarity in trade licensing in Dubai has resulted in both wholesalers and retailers performing some amounts of import and re-export activities," the DCCI pointed out.

Thirty-one per cent of the companies that reported annual sales between Dh1 million and Dh5 million were in the wholesale business, while 32 per cent were in retail.