UAE ranks as second global retail hot spot, says survey

The annual survey — How Global is the Business of Retail? — mapped the global footprint of 294 of the world’s top retailers across 69 countries.

Despite a bumpy year for retail markets across the world, the UK maintained the number one position in the top 20 most international retail markets ranking for the third year running, with 58 per cent of brands in the survey present in the country. In second place is the UAE, with 54 per cent.

The USA came as the third most targeted retail destination with the presence of 51 per cent of the bands. The US was followed by France (50 per cent) and China (47 per cent) in the top five retail destinations.

RNCOS, a US market research firm, said in one of its surveys that the UAE retailing trade, with a projected average annual growth of 12 per cent over the next few years, continues to lure a crowd of established international retailers to set up shop here.

Rising household consumption and a booming service industry have driven the retail sector’s growth and enticed large foreign companies to invest in the UAE, it said in a report.

According to CBRE survey, the UAE moves up to second from third in terms of year on year growth, highlighting its significance among the global retailers. Other countries that make up the top 10 include Saudi Arabia (43 per cent) in 9^th, having moved up a place in the rankings.

“We are delighted that the UAE, and for that matter, the rest of the Middle East, has been acknowledged as a power-house in retail. It is clear that various factors have continued to attract retailers to the emerging markets, with Dubai the clear winner,” said Michael Leighton, Senior Retail Consultant at CB Richard Ellis Middle East.

“Looking beyond the UAE, we are pleased that Saudi Arabia has featured strongly amongst the international retailers’ expansion plans during 2009. It has the largest population in the GCC and has a large amount of affluent consumers, making it a prime target for retailers looking to build brand presence. Furthermore, countries like Qatar and Kuwait — who both have one of the highest per capita income in the world — are expected to grow in significance as the current development pipeline comes on stream in the next couple of years.”

Attracting 56 per cent of all international retail brands surveyed, London retained its number one city ranking in the latest report. However its position is increasingly being challenged by Dubai, with the second highest presence of international retailers (55 per cent), the survey said.

Dubai’s number two position globally reinforces the significance of emerging markets to the new global retail landscape, it said.

Rounding out the top five, London and Dubai were followed by the established markets of Paris (46 per cent of international retailers), New York City (44 per cent) and Hong Kong (43 per cent) respectively, which clearly still hold global retail pulling power. The composition of the rest of the top 20 — in its mix of traditional and emerging markets — gives an indication of just how global the international retail business really is.

Despite the much-publicised economic challenges in the Middle East, the region is fast becoming a prime spot on the global retail map, said Peter Gold, Head of EMEA Cross Border Retail, CB Richard Ellis.

“The inherent medium-term growth potential of many emerging markets remains a key strategic magnet, helped by the fact that in some cases these markets have as yet only been targeted by relatively few international brands,” he said.

The annual report has seen significant shifts in its ranking of global retail cities in the past year, with emerging markets including Beijing, Shanghai and Moscow improving their positions within with top 10, and with Riyadh, Jeddah and Kuwait City moving into the top 20 list of the most penetrated international retail markets for the first time.

issacjohn@khaleejtimes.com