Dubai Duty Free's (DDF) retail operation had annual 2006 sales of over US$712 million, a 20 per cent jump over 2005, and in fact ahead of your own projection of US$700 million made at the beginning of the year.

What performance highlights can we expect for 2007?
We are optimistic that the upward sales growth will continue for 2007, and we will continue to monitor and improve the retail offer wherever we can to ensure this. The major development this year will be the opening of Concourse 2 and Terminal 3, and although this will not happen until the end of 2007, we are still expecting our sales to be close to US$800 million in 2007. We will continue to try and increase penetration level, which is currently at around 42 per cent – i.e., 42 per cent of all travellers purchase at Dubai Duty Free, which is much higher than the industry average of 15-20 per cent. We will also try to increase the average passenger spend from the current US$44 to US$46… that will make a big difference to our overall sales.

Your competition, as far as a Middle East tourist is concerned, is also the stunning shopping centres that dot the region's landscape. Looking at yourself purely as a retail operator, what does DDF offer over and away from the malls and markets of Dubai ?
You are right, the shopping malls in the UAE and throughout the region are spectacular and Dubai itself has some stunning malls, with new malls on the horizon. We think that our retail offer of providing a bright, spacious and elegant shopping environment, combined with a well-trained workforce, great products and good value, are a winning combination. As such, I think that we will always compare favourably with the competition.

I believe two new concourses are being added in Dubai, which will add another 15,000 square metres of retail space to the existing 7,000 square metres.
Concourse 2 and Terminal 3 will add a further 8,000 square metres of retail space. The new facilities will open at the end of 2007, although from a planning point of view, we are advanced with our design and layout plans, and looking forward to running a total retail area of 15,000 square metres. The retail offer will not differ greatly from that available in Sheikh Rashid Terminal, in that Dubai Duty Free will continue to operate all retail areas – there will be no concessionaires. We are also looking at well-spaced retail areas, some of which will be duplicated for the ease of departing passengers. The retail area will be longer and slightly narrower than Sheikh Rashid Terminal, and interspersed with some seating area and F&B outlets. The overall look will be bright, airy, elegant and shopper-friendly. I think it will be fantastic!

In your view, what are the most important things an airport retail operator must have or do to be as successful as DDF as been?
There is no one thing, but more a combination of things. We have been extremely lucky to have the support of the Government of Dubai, and in particular the support of HH Sheikh Ahmed bin Saeed Al Maktoum, president of the Department of Civil Aviation, Dubai, who has provided the operation with encouragement over the past two decades. We also have a great team of staff, over 1,750 in total, who are committed to providing travellers with a first-class service. Our objective has always been to provide excellent service, value for money, quality and a wide range of merchandise, all within a shopper-friendly environment. I think that we have delivered on all of these aspects and these combined have led to our success.

You mentioned something about DDF doing it differently from others. What are these differentials? How do you achieve them, and keep enhancing them year after year?
I believe in keeping things simple, as a business philosophy – we buy things, we mark them up a bit, and we sell them on. However, we also try to be innovative and that probably makes the difference. From our product offer, to our marketing, which incorporates marketing programmes in the retail operation such as Finest Surprise and Millennium Millionaire, to owning and organising major sporting events such as the Dubai Tennis Championships, we are happy to always think of the next big thing.

There is a strong connect between tourism and airport retail – how do you think emerging airports should differentiate (local flavours, design, ‘destination merchandise,' etc.) to the world-weary traveller and keep him engaged? Does the ‘Gifts from Dubai' shop also emphasise local merchandise?
There has been a major move towards ‘destination merchandise' in recent years, and overall, I think it is important to highlight the local destination throughout the airport. This is the case with Dubai International Airport – although modern in architecture, it has a series of Arabian themes running throughout, including the rows of palm trees lining the walkways, the Arabian themed-artworks, and the touches of gold and colour in central areas. At Dubai Duty Free, that modern architecture, with a touch of Arabia, continues, and the ‘Gifts from Dubai' shop is at the centre of this. We renovated this area completely a couple of years ago, and the sales increase underlines the growing demand for good-quality merchandise that reflect a country's heritage and are affordable keepsakes.

You have spent the last 24 years of your life in the Middle East. What's kept you here – could you see the Dubai of 2007 looking the way it does, even back in 1983?
Certainly, I could not have envisaged Dubai being as it is now when I arrived in the summer of 1983. At that time, hardly any of the taxis had air conditioning and the Dubai Trade Centre marked the end of the city line. The changes have been staggering and wonderful at the same time. I remember when you would check the newspaper to see what was going on and if it was the dog show, there was great excitement and everyone went to it. Now, the dog show (which has also grown to be a major event) still takes place, but so does the world-class golf, the tennis, the powerboat race, the Dubai World Cup racing, and so on.

Dubai always felt like a special place to me, even back in 1983. You could see then that there were plans in place to make this a great centre for business and leisure. Certainly, the vision and drive of the ruling family is commendable and I am looking forward to seeing some of the new developments come to fruition, including the opening of the new expansion at Dubai International Airport (Concourse 2 and Terminal 3, and later Concourse 3) and the opening of Dubai World Central Airport in Jebel Ali. Someday, that will serve 120 million passengers… now that will really be something to see!