Dubai: The Dh3.1 billion Dubai Waterfront Centre opened its doors to shoppers yesterday, but developers Al Futtaim Group are already gearing up for the next phase of retail development.

Over the next 18 months, approximately 400,000 square feet of extra space will be added on to Dubai Festival City's "power centre" - a shopping zone in the overall the Dubai Festival City (DFC) area made up of big box stores including Ikea, HyperPanda, Plug In Electronix and Ace Hardware.

Al Futtaim will expand the area to one million square feet with the arrival of approximately 20 retailers -some new to the UAE, according to Phil McArthur, managing director, shopping centres and commercial real estate at Al Futtaim Group.

"We have a lot of interest but we can't reveal names because the deals haven't been signed. They will mainly be in three categories - home furnishings and accessories, sporting goods and family fashion," he said.

Progressive openings

In addition, the company will open the Canal Walk and The Pavilions (made up of restaurants and handicraft stores), a cinema entertainment level, a gold souk, as well as progressive openings of additional shops and food court restaurant in the Waterfront Centre - all scheduled to be up and running by the end of the year.

Currently approximately 90 per cent of the 1.4 million square foot Waterfront Centre (a no smoking area) is leased out to retailers -- 60 of which will be trading by the end of March. When fully operational, the centre will have 550 stores, 90 of which will be restaurants and cafes.

"The business used to believe that everything should be leased on the opening day, but now we realise that major retailers from around the world are coming to Dubai everyday to see us or the likes of Dubai Mall. If you don't have extra supply of prime location, you may miss the brand," said McArthur.

Yesterday's first trading day comes two months later than the expected opening during Dubai Shopping Festival.

"In December, the whole project just wasn't quite ready to open. We all tried our best and it was disappointing at the time, but I think the Al Futtaim family showed a lot of character by making sure they got it right before opening," said McArthur.

Malls under fire

Many analysts have criticised malls in Dubai for offering an almost identical range of brands. McArthur was confident that the Waterfront Centre could offer shoppers something different.

"We have close to 50 brands that are the first one in Dubai or are very early in the market (such as perfume and cosmetics brands Sephora) and we have 10 per cent of our space on hold. Now we have to decide how to finish the mix and optimise our offer," he said.