Dubai Duty Free - sponsors of Irish Derby at the Curragh - still going strong after 40 years

Dubai Duty Free is one of the greatest travel retail success stories. Now about to mark its 40th year of retail success, Dubai Duty Free doesn’t rest on its laurels.

In 1983 a ten-man team arrived in Dubai from Aer Rianta, Colm McLoughlin the now Executive Vice Chairman and CEO of Dubai Duty Free was one of these men. Their mandate was to set up Dubai Duty Free on behalf of the Dubai government, but no one surely could have envisioned what lay ahead.

McLoughlin recalls a time when Dubai Duty Free started with 100 staff in December 1983, of which only he is still working for the company. Today, Dubai Duty Free has over 5,000 employees from 47 different countries, leading McLoughlin to assert, "We are very successful because of our team and staff. And I continue to praise them as much as I can. I remember the original so called “Irish Trinity” of myself, George Horan and John Sutcliffe, as we celebrate our 40th anniversary."

With an allotted time of six months to set up operations, Dubai Duty Free opened its doors on December 20, 1983, after which McLoughlin was asked to remain and head up the operation. He remains at the helm as the current Executive Vice Chairman and CEO. By 1984, the company had achieved over US$20 million in sales—impressive for just one year of business. By 2019, the figure had reached over US$2 billion.

His Highness Sheikh Ahmed bin Saeed Al Maktoum, President of the Dubai Department of Civil Aviation (DCA), one of the most influential figures in the global aviation industry, has played a pivotal role in the development of Dubai’s airport, airline and travel retail sectors. Stepping into public office in 1985, he is now President of Dubai Civil Aviation Authority, Chairman of the Emirates Group and Chairman of Dubai Duty Free among other major positions.

The shop floor at that time underwent its first significant development in 1989, when its floor space was increased. The 1998 debut of Terminal 2 represented yet another enormous advance. What is presently known as Concourse C (previously Sheikh Rashid Terminal) was first opened by Dubai Duty Free in 2000. Concourse A, which was reserved for A380 aircraft, opened in 2013 after Concourse B (Terminal 3) did so in 2008. The government decreed that Dubai Duty Free will operate its duty-free shop at Dubai World Central—Al Maktoum International Airport, which opened in the same year.

Running such an expanding operation means keeping abreast of the latest technologies. In 2008, Dubai Duty Free opened its automated warehouse distribution center, where the new Dubai Duty Free head office is also located. It has since doubled its capacity, and today it runs at around 90% automation.

In 2016, Dubai International Airport’s Concourse D opened, lifting the airport’s capacity to over 90 million passengers a year and adding 7,000 square metres to Dubai Duty Free’s retail footprint.

At the start of 2020, Dubai Duty Free opened a new Arrivals shop in Terminal 3, but the onset of the COVID-19 pandemic has had a big impact on the airport retailer, and it had to close its operation on March 25, before reopening in June 2020.

Yet despite the challenges of the pandemic, Dubai Duty Free achieved some great results, including returning to profitability in January 2021, expanding its retail operation by opening three luxury boutiques including a Dior boutique in Concourse A and B and a Louis Vuitton shop in Concourse B and winning the record tenth Frontier Airport Retailer of the Year award.

"Our industry has always been resilient; we’ve faced major challenges over the years, and I have to say that I was heartened by the way our staff and the wider industry have pulled together since the start of the pandemic," says McLoughlin.

Come 2022, Dubai Duty Free showcased a strong recovery post-pandemic as travel returned, during which the operation went from strength to strength by opening a Cartier boutique and exceeding its annual sales forecast when it reached a turnover of US$1.74 billion.

“We are expecting our business to touch just over $2 billion this year. So, I am delighted with our time and pleased with our progress. Dubai Duty Free has gone on to become the single largest Duty Free in a single airport in the world. Thanks to His Highness Sheikh Ahmed bin Saeed Al Maktoum for his ongoing support throughout these years," said Colm McLoughlin.

In addition to its retail division, Dubai Duty Free operates a Leisure Division. 1992 saw the opening of the Aviation Club. The Dubai Duty Free Tennis Stadium, the Irish Village followed in 1996, and the cosmopolitan Century Village promenade of restaurants a couple of years later. Through its continuing popularity, The Irish Village opened its second home at Studio One Hotel in Dubai Studio City in 2019.

In 2012, Dubai Duty Free opened the Jumeirah Creekside Hotel. Set in landscaped grounds overlooking Dubai Creek, the five-star property perfectly encompasses the modern luxury of the city.

During these 40 years, Dubai Duty Free also encapsulates the emergence of the emirate of Dubai on the world stage, not only as an economic powerhouse but also as a sports and leisure capital. From early on, Dubai Duty Free identified sports sponsorship as a good way of reaching a wide target audience and one that can generally be measured quite well. Sport sponsorships around the world includes the Dubai Duty Free Tennis Championships in Dubai, various golf tournaments and racing. International horse racing has provided an excellent medium for Dubai Duty Free to capture the global media attention with major racing fixtures run at Ascot and Newbury under the company’s name. The operation is also the title sponsor of one of the biggest races in Europe, the Dubai Duty Free Irish Derby, which is being held at the Curragh Racecourse this year on Sunday, the 2nd of July.

“By supporting so many events at the highest level and all around the globe, Dubai Duty Free is effectively promoting the city’s leisure and business facilities, which are second to none. And with more and more world-class sportspeople choosing Dubai to showcase their talent, there is set to be much more to come in the future,” says McLoughlin”.

Things were very different 40 years ago, and a large part of that can be attributed to the success of Dubai Duty Free.

From a ten-man team who arrived from Ireland to start the company to its world-class sports sponsorship and pioneering promotions as well as its community work, Dubai Duty Free’s growth shows no signs of slowing in the foreseeable future.

Aligning with Dubai’s own ambitious aviation expansion plans and through the guidance and support of the government of Dubai, it will continue to underpin the success of Dubai Duty Free for many years to come.