The GCC retail industry is the second largest industry after oil production.

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22 Oct 2007

United Arab Emirates 22nd October 2007 - It was a seemingly endless reserve of oil and path-breaking trade routes that first put the GCC on the global economic map. But of late, the main chapter in the GCC success story has been the phenomenally successful retail industry. Worth approximately $100 billion, the retail sector is today a major driving force behind the economies of the six-nation strong GCC and has become the second largest industry after oil production.

The region’s reputation as a shopper’s paradise continues to grow with every passing year, and thousands of retail outlets are queuing up to add their neon names to the region’s glittering streets, malls and skylines. According to RetailME magazine, by 2009, retail spend in Dubai’s shopping malls alone is expected to exceed US$7.6 billion and Abu Dhabi’s by US$1.9 billion. Its neighbours are close on its heels, with Saudi Arabia crossing US$6 billion.

The Dubai Mall will cover 810,000 sqm and be the largest mall in the world.

Dubai alone will have 16 times more sales floor space in malls per capita than the average for the EU25. The IMP puts the 2006 growth rate of the UAE at 10.5%, which is one of the fastest rates worldwide, and the Dubai Strategic Plan announced by the ruler of Dubai in February 2007 projects an 11% annual growth up to 2015, thereby tripling the current level of GDP. Bahrain and Qatar, fuelled by internationally recognised events like the Bahrain Grand Prix and the Asian Games respectively, are also making massive inroads into the retail market. Even Oman, which is a relatively quiet retail market, has joined the fray. A study conducted by Global Investment House on Oman’s real estate sector show that hotels are at nearly 100% occupancy, indicating a large upswing in tourism.

Some of the most unique retail projects in the world have sprung out of the desert sand. Dubai Mall, for instance, will be the largest mall in the world. Again, Dubai’s neighbours are not to be outdone, and have responded with the USD$266 million Al Shobily Grand Mall in Saudi Arabia, the US$400 million City Centre in Bahrain and the US$52 million Dar Al Awadi Centre in Kuwait. A stable political environment, an extremely high per capita income and top-of-the-line infrastructure makes this region all the more attractive for retail investors. The retail market is tailor-made to suit every economic strata of society, ensuring that there is something for everyone.

The region is therefore the ideal location for path-breaking exhibitions like InRetail, which brings together players from all levels of the retail industry under one roof. “In its third year, InRetail will be held at the Dubai International Exhibition Centre from 8th to 10th June 2008, and will focus on attracting architects and designers, retailers, supermarket and shopping mall developers to meet with global exhibitors from the three key sectors of the retail industry – shopfitting and visual merchandising, retail design and consultancy, supply chain management and technology” said Paula Al Chami, the exhibition organizer. “This is an important forum for the retail industry as the exhibitors provide valuable knowledge, expertise and insight that will ensure the region continues to be at the forefront of the consumer shopping experience” she added.

If the last decade of retail growth in the GCC and the last two editions of InRetail are a parameter for judging the success of the retail industry in the region, then the future looks brighter than ever!