Resilience in action: Ramesh Cidambi on Dubai Duty Free’s record year and growth outlook

Dubai Duty Free continues to outpace expectations in 2025. The retailer recorded AED 671.79 million (US$184 million) in September, its highest-ever figure for that month and a 12% percent increase over 2024.

The performance reflects both the resilience of air traffic across the Middle East and Africa, as well as Dubai Duty Free’s capacity to convert that recovery into consistent, profitable growth. “Air traffic in the region has been very resilient,” says Managing Director Ramesh Cidambi. “We had a minor blip in June, but otherwise, the months have been steady, and the traffic has come in higher than forecast.”

Sustained growth

Amid ongoing global volatility, Dubai Duty Free’s momentum highlights the stability of the Middle East travel market. The company expects around 95 million passengers to pass through Dubai International Airport (DXB) by the end of 2025.

Airline carriers, particularly Emirates’ premium cabins, continue to support growth. “Business and first-class travel have been especially resilient, and performance has been very strong,” says Cidambi. “Overall, the travel outlook is very positive.”

Passenger growth shows broad-based gains. The Middle East rose 4.3% in sales while Europe, Africa, the Indian subcontinent and the Americas posted double-digit growth, pushing sales ahead of traffic trends. Between January and September, sales grew 7.5%. “September was a very strong month for us, with growth of 11.5%,” Cidambi adds. “The upside in demand outweighs any risk of major interruptions.”

The company remains focused on consistency, agility and regional strength. “Right now, we do not see any major geopolitical or other risks to traffic,” says Cidambi.

Operational excellence

Dubai Duty Free drives resilience through an efficient operation built on years of investment in technology, logistics and relationship-building. “We had the first automated distribution center in the Middle East,” says Cidambi. The facility stores 20,000 pallets and 33,000 bins, moving 8,000 products daily to the shop floor.

“Over the years, we have built strong relationships with local markets and brands,” he explains. “We have the infrastructure to receive and store merchandise.” About 60-70% of Dubai Duty Free’s merchandise is sourced locally through agents and distributors.  

This network proved crucial during global supply challenges. “In 2021-22, some categories had issues – for example, alcohol from Scotland – but by 2023-24, most were resolved,” Cidambi says. “The bigger challenge has been keeping up with demand and ensuring our technology, logistics and supply chain keep pace with a very busy airport.”

Africa’s rise

Alongside strong Middle Eastern performance, Africa is emerging as a growth driver. From January to September 2025, sales linked to passengers flying to African destinations rose 12%. “Africa is becoming increasingly important in Dubai Duty Free’s passenger mix,” says Cidambi. “If Europe generates a billion dirhams, Africa will do half. It is a significant market.”

While the retailer tracks destinations rather than nationalities, the Africa-bound segment remains strong. “We only know the destination, but that part of the business is solid,” says Cidambi. “Consumption patterns in Africa are not much different than in the Far East or Europe,” he adds. “We are pleased the region is growing and that we can service it from Dubai.”

Growth is further supported by Dubai’s expanding network of routes into Africa, particularly through Emirates. Increased connectivity and rising purchasing power are turning the continent into an important area for travel retail.

A balanced regional footprint

Dubai Duty Free draws strength from a broad regional mix, keeping it steady through market cycles. “The Middle East is about 20% of the business, the Indian subcontinent 20%. Europe 20%, Africa half of that, and North and South America half of Africa. Russia is strong at 11-12%, and the Far East remains solid despite the drop in China,” says Cidambi.

The retailer serves a diverse customer base across multiple categories, with its top 10 – perfumes, cosmetics, confectionery, liquor, tobacco, fashion, watches, electronics and gold – generating roughly 80% of revenue.

Cidambi notes some regional differences, such as higher spending on fashion among Chinese passengers or alcohol purchases among Indian travelers, but the variations are subtle. “People travel from Dubai to destinations across five continents thanks to Emirates’ network,” he says. “There are some differences in behavior, but they are not significant.”

Diversity, resilient air traffic and strong operations keep Dubai Duty Free ahead in the evolving travel retail landscape. “The volatility has always been on the upside,” shares Cidambi. “Passenger numbers have been better than forecast.”