Toys and games market in UAE worth $1 billion

The UAE's retail value for toys and games, which was worth $686 million in 2014, is projected to grow 11 per cent in 2015.

A growing population, coupled with a continuous increase in tourism, has steered the UAE's toys and games market into a $1 billion industry, a recent report by Euromonitor International has found.
According to the Euromonitor report, titled 'Toys and Games in the UAE', approximately $355 million of the $686 million in retail value in 2014 was for traditional toys and games, with video game hardware and software accounting for $331 million. Hypermarkets and other brick and mortar-based specialist toy stores conveniently located at malls across the country are the major distribution channels for traditional toys and games, while retailers are increasingly investing in internet retail to cater to the ongoing trend of consumers researching and comparing options online.
The report found that the UAE's retail value for toys and games, which was worth $686 million in 2014, is projected to grow 11 per cent in 2015 to be worth $762 million. By 2019 the retail value, which includes traditional children's toys and games along with video games, will be worth $1.06 billion, growing at a compound annual growth rate of nine per cent.
The UAE's rising birth rate and high number of young working adults is having a positive impact on the market according to the August 2015 report, while the influx of retail space added to the country's network of malls and community centres is also ramping up demand.
With an $80 per capita spend on toys and games - more than Japan, Spain and Italy - the UAE is developing into a prime market for international toy manufacturers eager to expand their presence in the country and further afield into surrounding Gulf markets.
Plush toy manufacturer, Wild Planet, is among the brands that will line-up their latest range of children's toys and games at the upcoming Playworld and Paperworld Middle East 2016 trade show in Dubai. The Portuguese company will be one of many global manufacturers at the annual three-day event, which takes place from March 1-3, 2016 at the Dubai International Convention and Exhibition Centre. Pedro Kleinsteuber, export manager at Wild Planet, said the company is planning to launch in the Middle East market 70 new items across four collections, as it looks to triple its sales revenue over the next two years. "In 2014, our business volume in the Middle East was worth $250,000, and we're looking to increase this to $750,000 by 2016. Plush toys are very popular in the region, particularly in the UAE, where tourists can buy soft toys that are easy to carry back home."
"Retail space for children's toys and games will increase, and we anticipate meeting a wide range of traders, wholesalers, distributors, and retailers at Paperworld Middle East 2016 as we build on our presence in the market," added Kleinsteuber.
- rohma@khaleejtimes.com