97% of GCC retailers increasing investment in AI – report

Doha Festival City has unveiled The Festival Edits: Qatar’s Retail Trends Report 2025, which shows that 97 per cent of retailers across the GCC are increasing their investment in artificial intelligence as the technology becomes central to transforming customer experience, operations, and marketing.

AI in regional retail is forecast to grow from US$5 billion in 2023 to US$31 billion by 2028, underscoring a major shift toward data-driven innovation.

The report, developed with Ipsos and industry experts, also captures how Qatar’s retail landscape is evolving into a blend of shopping, social, and cultural experiences.

Shopping remains the leading reason for visiting Doha Festival City (46 per cent), followed by dining (40 per cent) and leisure activities such as cinema, fitness, and events (30 per cent). Millennials and Gen Z are key drivers of these trends, visiting the mall regularly and spending an average of 2.7 hours per visit.

Beauty and fashion remain top spending priorities. Among Gen Z Qatari women, 40 per cent prioritise makeup, 25 per cent fragrance, and 20 per cent skincare, with modest-meets-contemporary styles appealing to 22 per cent. Across all shoppers, streetwear leads at 34 per cent, followed by premium perfumery (32 per cent) and modest fashion (28 per cent). Among men, 32 per cent prefer premium perfumery.

Half of shoppers rank ambience, personalisation, and events above convenience when choosing a mall, highlighting a growing emphasis on experience-driven retail. Average monthly spending on fashion and beauty ranges between QAR500 and QAR2,500.

“Malls have become venues for connection and curation as much as commerce. Festival Edits captures the spirit of this transformation, offering a credible, data-backed perspective on what defines style, innovation, and community in Qatar today – from perfume and makeup lovers to streetwear enthusiasts and esports audiences,” said Mohamed ElSharkawy, Associate Director – Malls Leasing, Doha Festival City.