JEDDAH – The Middle East has emerged as a key market for retailers across the world, RNCOS said in its “Middle East Retail Sector Forecast to 2013”.
It forecast that the region’s retail industry will grow at a CAGR of around 10 percent during 2011-2014 to reach over $ 1,000 billion by 2014.
Retail has been one of the fastest growing industries in the region for the past few years. Favorable government policy frameworks and active participation by the private sector have facilitated the region and its retail industry to become one of the world’s most desirable retail environments, in terms of investments and revenue generation. Moreover, changing market dynamics, rapid economic development, balancing crude oil prices, rising purchasing power, and strong consumer confidence are strengthening the region’s retail industry.
The retail culture has evolved from traditional outlets to large shopping malls, hypermarkets, supermarkets, and organized chains.
Changing consumer demographics in countries, like Saudi Arabia and the UAE, presence of large expatriate population, improving purchasing power, and high liquidity have attracted premium and luxury brands to the region.
The survey found that the Gulf region has undergone the biggest transformation in floor space in the retail history.
Massive capital investments will bring transcendental changes in the physical setting of the shopping experience. The expansion of retail space in the Middle East, and the construction of new malls will provide opportunities to both national and international retailers (including brands) to increase their presence and penetration in the region. – SG/QJM