UAE’s Gen Z Reveals Why Malls No Longer Attract Them 2025

REAL ESTATE10 hours ago

In 2025, a surprising trend is reshaping the retail landscape of the UAE: Gen Z is turning its back on massive malls and embracing the charm and authenticity of small shops. This shift signals more than just a change in shopping habits it represents a deeper cultural and economic transformation led by the most digital and socially aware generation in history.

From Dubai to Abu Dhabi, Gen Z shoppers those born between 1997 and 2012 are opting to support independent businesses, local creators, and boutique experiences rather than browsing through the endless corridors of shopping malls. The UAE, known for its luxurious retail hubs like The Dubai Mall and Yas Mall, is now witnessing an evolution that could redefine the future of retail in the Gulf region.

Let’s dive into the key reasons behind this shift, the impact on the retail ecosystem, and what this means for businesses aiming to connect with the next generation of consumers.

A Generation that Values Authenticity

Gen Z is not easily impressed by flashy advertisements or mass-market brands. What they truly value is authenticity, transparency, and uniqueness qualities often found in small shops and local boutiques.

These young shoppers are more likely to support a store that tells a story, showcases handmade products, or highlights sustainability. In places like Alserkal Avenue or Ripe Market in Dubai, many small business owners openly share how their products are made, where the materials come from, and how purchases support local artisans or global causes.

Unlike the mall experience, which can feel corporate and repetitive, small shops offer a sense of personal connection. UAE’s Gen Z prefers buying from people they can relate to rather than faceless international chains.

Platforms like Instagram, TikTok, and Snapchat have fueled a new wave of young entrepreneurs in the UAE. Gen Z doesn’t just shop they also create, market, and sell. Many of them run their own fashion, accessories, or art businesses online and participate in local pop-up events or markets.

According to a 2024 survey by the Dubai SME Authority, over 60% of Gen Z consumers prefer buying from social media-based brands or pop-up stores than traditional retail outlets. The digital world has made small business discovery more accessible and exciting.

Malls have tried to catch up with this trend by adding social media-friendly zones and influencer collaborations, but small shops remain one step ahead in creating an organic, relatable vibe.

Support for Local and Sustainable Products

Sustainability is another major driving force behind this trend. UAE’s Gen Z is more environmentally conscious than previous generations. They are aware of the harmful effects of fast fashion and overconsumption.

Small shops often offer eco-friendly, cruelty-free, or recycled products. These values align well with Gen Z’s lifestyle choices. From refillable skincare to upcycled fashion, young shoppers are putting their money where their values are.

In contrast, malls and big brands are still criticized for mass production and lack of transparency in supply chains. This ethical awareness is making Gen Z rethink where they shop and what kind of businesses they support.

Personal Experience Over Generic Offers

A key part of Gen Z’s shopping behavior is their preference for experience-driven retail. They want to feel a connection, engage in real-time, and enjoy something unique. Malls may offer convenience, but they lack the personal touch.

Small shops, especially in local markets, offer customized shopping, interactions with store owners, and sometimes even the chance to see how products are made. These experiences are not just memorable they are shareable. Gen Z loves to document and share their lifestyle, and a quirky, aesthetic shop in a cultural district often makes for better social media content than a mall corridor filled with identical storefronts.

The Decline of Mall Culture?

This trend doesn’t mean malls are dying, but their dominance is definitely fading. Many UAE malls are evolving to remain relevant. They are offering more entertainment, integrating tech-based experiences, and providing leasing space to small and local businesses.

However, footfall in major malls has slightly declined among younger demographics, as per a 2025 report by UAE Retail Insights. The report noted that 35% of Gen Z shoppers visit malls less frequently than they did three years ago, and nearly 50% prefer online shopping or local store experiences over traditional mall visits.

The Role of Cultural Identity

UAE’s multicultural environment has given Gen Z access to a blend of global and local influences. Small shops often cater to niche interests whether it’s South Asian streetwear, Arabic calligraphy art, or African handmade jewelry. These businesses speak to cultural pride and individuality.

Malls, while diverse in offerings, often present a more standardized shopping environment. For a generation that values identity, representation, and freedom of expression, small stores offer a better match.

What Retailers Must Do to Keep Up

To attract Gen Z in the UAE, retailers both big and small need to rethink their approach:

Go Local Stock local brands and culturally relevant products.
Be Transparent Share how products are made and who benefits.
Offer Personalization Let customers create or customize their purchases.
Engage Online Use social platforms creatively to connect with Gen Z.
Prioritize Sustainability Reduce packaging, carbon footprint, and waste.

By combining convenience with values that matter to young people, retailers can create stronger, more lasting connections with this future-first generation.

Conclusion

The UAE’s Gen Z is reshaping retail with its powerful influence and clear preferences. They are choosing small shops over malls not out of rebellion, but out of purpose. They seek authenticity, local connection, creative expression, and sustainability all of which are more likely found in independent stores than in large shopping complexes.

For brands and mall developers, this is both a challenge and an opportunity. Those who listen to what Gen Z wants and adapt will thrive in this evolving market. And for small shop owners across the Emirates, this cultural shift could mark the beginning of a very bright future.