With the combination of Christmas, New Year and Eid this month, Dubai retailers are on the verge of a multi-billion dirham bumper retail season. And for the first time ever, the 45-day Dubai Shopping Festival (DSF) is coinciding with the festivities, raising expectations of a record sales.

In 2005, DSF drew in 3.3 million visitors over a 32-day period with sales reaching Dh6.67 billion - figures expected to be smashed during the current extended 45-day DSF. Event officials are expecting a 15 per cent increase in visitor numbers and a 20 per cent hike in spending.

Although many Dubai residents leave the country on annual holidays, the emirate experiences a massive influx of visitors from South Asia, Europe and other Middle East countries, all eager to take advantage of seasonal offers at Dubai's malls.

Many stores are expecting sales to jump by at least 20 per cent during the weeks ahead and have ordered in extra stocks ready for a frantic buying period. Products high on people's shopping lists include clothes, gift sets, toys, electronics items and jewellery. The Dubai Gold and Jewellery Group (DGJG) representing jewellery retailers is expecting sales to hit Dh800 million during DSF compared to the 2005 edition when spending totalled Dh550 million.

K.P. Baiju, the group's general manager, said the sales increment for DGJG members is expected to reach 25 per cent so long as gold prices remain stable. At least 70 per cent of sales will come from overseas visitors, he said. "The fact that for the first time DSF is coinciding with the festivals of Christmas, New Year and Eid makes this a very special year for us," he said. "When a tactical opportunity like this presents itself, we have to take full advantage by offering consumers a wide selection of products and attractive promotions."

Dubai's supermarkets are also putting in extra effort for the festive season. Kamal Vachani, director of Dubai-based retailers Al Maya Group, said the company has hiked stocks of gift sets and decorations for Christmas and Eid and has ordered in 5,000 Japan-ese products for sale at its stall in Global Village.

"This is a crucially important period of sales for us and all signs are pointing towards a record year. We are expecting sales to rise 20 30 per cent during this period," he said. A potential worry for Dubai's retailers could be the emirate's rising living costs and the knock-on effect on retail sales.