UAE ranks 7th global retail hotspot

The UAE ranks 7th leading global retail market and remains an attractive and relatively low-risk market for retailers, with highest sales per capita in the region, a new study has revealed.
The Global Retail Development Index (GRDI), which ranked China, India and Malaysia as the top three global retail hotspots, placed Saudi Arabia as eighth retail destination.
"Mall activity remains strong in the UAE: 2015 saw Mall of the Emirates open its 36,000-square-meter extension and Majid Al Futtaim's latest shopping mall City Centre Me'aisem was completed, alongside phase two of City Walk," said A.T. Kearney's 2016 report entitled "Global Retail Expansion at a Crossroads."
Expansion plans for the second half remain equally ambitious with numerous additions to the retail landscape expected, such as My City Centre Al Barsha and The Pointe Mall at Palm Jumeirah. Notable investments from international retailers include the opening of the first Apple store in the Middle East in Dubai - and the largest Apple store in the world at an estimated 10,000 square feet, said the report.
 Shamail Siddiqi, principal at A.T. Kearney Middle East, said despite a challenging year for the region with falling oil prices, and a tourism slowdown, several countries in the Middle East have remained strong retail destinations for retailers and consumers alike, with absolute sales continuing to grow. "The UAE and Saudi Arabia are leading the way across the region and it's promising to see both countries ranked top 10 among leading global players such as China and India who topped this year's index."
Dubai has retained its position as the second most important international shopping destination globally for the fourth consecutive year, closely behind London, according to a new report by real estate consultancy firm CBRE.
The 2015 edition of How Global is the Business of Retail? showed that Dubai has a presence of 55.7 percent of international retailers followed by Shanghai with 5 3.4 percent.
Dubai's retail market is forecast to surpass $52 billion in sales by 2020 with average annual growth of more than 8 percent, according to a new report.
Retail sales reached $35.4 billion in 2015 and are poised to see a 7.7 per cent growth this year, according to an analysis by the Dubai Chamber of Commerce and Industry based on data from Euromonitor International.
The A.T. Kearney's report noted that while Saudi Arabia's GDP fell 15 per cent in 2015, retail sales continued to grow. Saudi Arabia is already a popular destination for multinationals and tourists from the region. H&M has the most regional stores in Saudi Arabia, and Majid Al Futtaim will quadruple its store count in Saudi Arabia to 300 in the next five years. Arabian Centers, the kingdom's largest owner and operator of malls opened the Yasmin Mall in Jeddah and plans to develop 12 additional malls including Mall of Arabia in Riyadh. Recent policy changes which allow single-brand retailers 100% foreign ownership in retail and wholesale look set to push Saudi's position as an international hub for distributing, selling and re-exporting products. 
 According to the report, during the past 15 years, developing markets have seen tremendous growth both in terms of population, which has grown 21 per cent to 6.2 billion, and in terms of retail sales, which have increased 350 per cent in developing countries and now represent more than half of total global retail sales. - issacjohn@khaleejtimes.com