Encouraged by a strong consumer confidence, the thriving retail sector in the Emirates is expected to welcome new players along with huge investments.
As said by Dubai Chamber of Commerce and Industry, the retail sales in UAE this year are expected to see a 4% jump. Then, in 2011, the sales will witness a substantial revival with a growth of 8.2%m according to the news published by
Khaleej Times.
Consumer electronics, automotives and pharmaceuticals are the retail sectors which are projected to register strong growth.
The soaring consumer demand encouraged by a buoyant market sentiment is the main reason driving growth in UAE’s retail sector. With 29.6 points in H2 2009, the consumer sentiment directly climbed up to 86.1 points in H2 2010. As against adjoining countries, this increase was the biggest. The confidence of consumers in the Emirates is third highest worldwide, following Vietnam and Qatar. The growing market confidence in the months to come will result in increasing levels of private consumption.
A wave of new shopping centers that opened up in 2009 and the malls opening up this year will also drive the resilience of the UAE’s retail sector. Three major shopping malls opened up in H1 2009 in Dubai. These were the Arabian Centre, Dubai Mall, and Dubai Marina Mall. Around six shopping malls are planned to open up by this year. This contributes to the optimism and retail sector’s robust growth because it will add to the gross leasable area for this sector. In this context, “
Booming Retail Sector in UAE”, a RNCOS market research report says that by 2010, the gross leasable area is estimated to 7.4 Million Sq Meter. This will eventually uplift the growth of the retail sector in UAE.
Moreover, the industry will also be helped by high levels of wealth and growing urbanization. Then yet another factor that will help the retail industry to grow is Dubai Metro’s success, which commenced some services in September last year. Retails are most likely to enjoy a significant rise in sales as some of the metro stations are situated adjacent to or inside major shopping malls.
According to a Research Analyst at
RNCOS, “The thriving retail UAE retail sector will pull in many new players. For a growing market, this is definitely a positive sign. The retail sector is experiencing enormous investments, and the trend will continue afterwards also.”
Related Market Research Reports:
