Retail has been one of the fastest growing industries in the UAE for the past few years. Favorable government policy frameworks and active participation of private sector have facilitated one of the world’s most desirable retail environments in terms of investments and revenue generation. Further, burgeoning economy, balancing crude oil prices, rising purchasing power and strong consumer confidence are strengthening the retail industry.
According to our new research report “Booming Retail Sector in UAE”, the economic slowdown signs were almost nonexistent in UAE retail industry and its growth rate remained intact in 2009. Surging public and private sector consumption along with the contribution of strong industry verticals (tourism, trade, banking, etc) are expected to help the retail industry experience an impressive CAGR of around 13% during 2010-2013.
In addition, the country’s population is highly dominated by expats. Of the total population, UAE nationalists only account for 20% share and rest is from South Asia and European countries. A large proportion of expatriates are mainly employed in commerce, aviation, tourism and constriction sectors, and enjoy comparatively high net worth. The consumer segment is fueling retail sales and encouraging new market players for more developments.
The rapid development of modern retail infrastructure is luring consumers for convenient shopping experience and transforming into high retail spending. Per capita gross leasable area (GLA) surpassed 1 Sq Meter mark in 2008, which is one of the highest in the world. We anticipate that this trend will prevail in coming years and gradually boost the retail sales growth.
The report is an outcome of extensive research and thorough analysis of retail industry in the UAE. It facilitates statistics and analysis of all prominent market segments to provide deep and informative understanding of the market. The report also examines consumer behavior scenario with respect to purchasing decisions, spending pattern, and inclination towards domestic and foreign brands. The future growth areas discussed in the report helps to analyze the emerging market segments for players.