United Arab Emirates (UAE) Retail Sector Overview - August 2010
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Over the last few years the UAE’s retail sector seen remarkable growth and has positioned itself in the global retail map. The country’s burgeoning retail industry is anchoring the UAE government’s economic diversification efforts. 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, population growth, rapidly increasing economy, progressing service sector and promising travel and tourism sectors, stabilizing crude oil prices, rising purchasing power and strong consumer confidence are driving the retail industry. The modern shopping malls anchoring modern hypermarkets, highly developed free trade zones, shopping events like Dubai Shopping Festival and relaxed tax provision provide auxiliary growth thrust to the sector.
Even in the wake of economic slowdown, the retail revenue collections registered impressive growth and operating margins of players were on the higher side. The UAE's retail sales have grown over $107 billion in 2009 from $104 billion by 2008. It is expected that the retail sales in the country will climb over $120 billion by the end of 2011. A wave of new shopping centers and malls, which are at various stages of development, will further provide further UAE’s retail sector. The country have made massive investments into its retail real estate market and some of the world's most spectacular malls such as Dubai Mall, Mall of Emirates, Yas Mall etc. are expected to come online in the next 2-3 years, giving the nation increased international recognition.
The team at Ventures Middle East has brought a report on the Retail Industry in the United Arab Emirates 2010, which provides a comprehensive understanding of the entire market dynamics of the Retail sector to assist players interested in assessing the market opportunities in this robust and dynamic market. Besides providing an impact probability matrix on key drivers and restraints that influences the country’s retail infrastructure, the report also conducts a scrutiny of the various political, economic, social, technological, legislative and environmental trends impacting the sector. It also highlights the developments in the country’s real estate and hospitality markets, which boosts retail sector. It provides a complete retail map on how the UAE retail space has evolved over the years and what are the planned activities in the sector. The key highlight of the report is that it presents a complete and coherent competitive overview of the UAE retail industry. Further, the report also identifies all the key players in the Retailers Profile section of the report. The section talks about the business profile and strategic moves of the leading players operating in the sector. This study is a critical guide to understanding the forces that produce the changes in the Retail Market and in making informed decisions on the industry.
Over the last few years the UAE’s retail sector seen remarkable growth and has positioned itself in the global retail map. The country’s burgeoning retail industry is anchoring the UAE government’s economic diversification efforts. 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, population growth, rapidly increasing economy, progressing service sector and promising travel and tourism sectors, stabilizing crude oil prices, rising purchasing power and strong consumer confidence are driving the retail industry. The modern shopping malls anchoring modern hypermarkets, highly developed free trade zones, shopping events like Dubai Shopping Festival and relaxed tax provision provide auxiliary growth thrust to the sector.
Even in the wake of economic slowdown, the retail revenue collections registered impressive growth and operating margins of players were on the higher side. The UAE's retail sales have grown over $107 billion in 2009 from $104 billion by 2008. It is expected that the retail sales in the country will climb over $120 billion by the end of 2011. A wave of new shopping centers and malls, which are at various stages of development, will further provide further UAE’s retail sector. The country have made massive investments into its retail real estate market and some of the world's most spectacular malls such as Dubai Mall, Mall of Emirates, Yas Mall etc. are expected to come online in the next 2-3 years, giving the nation increased international recognition.
The team at Ventures Middle East has brought a report on the Retail Industry in the United Arab Emirates 2010, which provides a comprehensive understanding of the entire market dynamics of the Retail sector to assist players interested in assessing the market opportunities in this robust and dynamic market. Besides providing an impact probability matrix on key drivers and restraints that influences the country’s retail infrastructure, the report also conducts a scrutiny of the various political, economic, social, technological, legislative and environmental trends impacting the sector. It also highlights the developments in the country’s real estate and hospitality markets, which boosts retail sector. It provides a complete retail map on how the UAE retail space has evolved over the years and what are the planned activities in the sector. The key highlight of the report is that it presents a complete and coherent competitive overview of the UAE retail industry. Further, the report also identifies all the key players in the Retailers Profile section of the report. The section talks about the business profile and strategic moves of the leading players operating in the sector. This study is a critical guide to understanding the forces that produce the changes in the Retail Market and in making informed decisions on the industry.
Executive Summary
United Arab Emirates –Retail Snapshot, 2010
Demographic Profile
Economic Indicators
Report Segmentation
CHAPTER 2: MARKET OVERVIEW OF UAE RETAIL MARKET
Types of Retail
Drivers and Restraints to the Growth of the UAE Retail Industry
Key Drivers
Integrated Mixed Use Developments are attracting investments to the Retail sector
Population Growth and Higher Standards of Living
Demography-High proportion of youth
Increased Government Emphasis on Diversification
Political stability and a robust business friendly environment
Augmenting Real Estate, Travel, Tourism & Transport Sectors
Shopping Events Has Emerged as the backbone for retail
Per capita consumption of cosmetics and fragrances in the UAE is one of the highest in the world
Key Restraints
Global Financial Crisis Had Dampened the Consumer Confidence & Credit growth
Introduction of 3% Value Added Tax (VAT)
Increasing presence of international players to incite competition
PESTLE on UAE Retail Market
Retail Sector – Facts and figures
Number of Shopping Malls in UAE
Abu Dhabi
Dubai
Northern Emirates
Retail Sales
CHAPTER 3: MARKET OVERVIEW OF UAE HOSPITALITY SECTOR
UAE Tourist Sector
Growth in Tourist sector
Tourism contribution to UAE Retail market
UAE Hotels Overview
Hospitality sector’s contribution to Retail Market
Dubai
Abu Dhabi
UAE Upcoming Hotel Projects
CHAPTER 4: MARKET OVERVIEW OF UAE REAL ESTATE SECTOR
Residential real estate growth
Increasing GDP Per capita
Growing Urbanization
Increasing Retail spending by residents
Upcoming Residential Projects
Commercial Real Estate Growth
Mixed development projects
Competitive Overview of the UAE Retail market
Entry Barriers
Entry barrier is very low
Might impose VAT
Substitutes
Alternative Retailing Formats Gaining Foothold
Buyer Power
Higher disposable incomes Strengthens Buyer Power
Weakness in Consumer Confidence Post Economic Downturn
Wide-ranging customer base defines UAE retail
Growing preference of international brands illustrates the power of buyer
Competitive Rivalry
Malls eating up stores
Increasing foreign retailers to stimulate competition
Supplier Power
Retailers improvise offerings
Weakened supplier power
Profiles of Key Retail Giants across Retail Segments in UAE
Future of Retailing in UAE
Procedures for Starting a business in UAE
Ventures MENA Projects Database
United Arab Emirates –Retail Snapshot, 2010
Demographic Profile
Economic Indicators
Report Segmentation
CHAPTER 2: MARKET OVERVIEW OF UAE RETAIL MARKET
Types of Retail
Drivers and Restraints to the Growth of the UAE Retail Industry
Key Drivers
Integrated Mixed Use Developments are attracting investments to the Retail sector
Population Growth and Higher Standards of Living
Demography-High proportion of youth
Increased Government Emphasis on Diversification
Political stability and a robust business friendly environment
Augmenting Real Estate, Travel, Tourism & Transport Sectors
Shopping Events Has Emerged as the backbone for retail
Per capita consumption of cosmetics and fragrances in the UAE is one of the highest in the world
Key Restraints
Global Financial Crisis Had Dampened the Consumer Confidence & Credit growth
Introduction of 3% Value Added Tax (VAT)
Increasing presence of international players to incite competition
PESTLE on UAE Retail Market
Retail Sector – Facts and figures
Number of Shopping Malls in UAE
Abu Dhabi
Dubai
Northern Emirates
Retail Sales
CHAPTER 3: MARKET OVERVIEW OF UAE HOSPITALITY SECTOR
UAE Tourist Sector
Growth in Tourist sector
Tourism contribution to UAE Retail market
UAE Hotels Overview
Hospitality sector’s contribution to Retail Market
Dubai
Abu Dhabi
UAE Upcoming Hotel Projects
CHAPTER 4: MARKET OVERVIEW OF UAE REAL ESTATE SECTOR
Residential real estate growth
Increasing GDP Per capita
Growing Urbanization
Increasing Retail spending by residents
Upcoming Residential Projects
Commercial Real Estate Growth
Mixed development projects
Competitive Overview of the UAE Retail market
Entry Barriers
Entry barrier is very low
Might impose VAT
Substitutes
Alternative Retailing Formats Gaining Foothold
Buyer Power
Higher disposable incomes Strengthens Buyer Power
Weakness in Consumer Confidence Post Economic Downturn
Wide-ranging customer base defines UAE retail
Growing preference of international brands illustrates the power of buyer
Competitive Rivalry
Malls eating up stores
Increasing foreign retailers to stimulate competition
Supplier Power
Retailers improvise offerings
Weakened supplier power
Profiles of Key Retail Giants across Retail Segments in UAE
Future of Retailing in UAE
Procedures for Starting a business in UAE
Ventures MENA Projects Database
LIST OF TABLES
Table 1: Impact Probability Matrix on Drivers
Table 2: UAE Retail PESTLE Analysis
Table 3: Major Shopping Centres Planned in Abu Dhabi
Table 4: Major Shopping Centers Planned in Dubai
Table 5: Major Shopping Centres Planned in Northern Emirates
Table 6: Middle East hotel performance in US$, Q1 2010
Table 7: Dubai Hotel Market Indicators
Table 8: Abu Dhabi Hotel Market Indicators
Table 9: UAE Hotel Projects
Table 10: Dubai Residential Sector Indicators
Table 11: UAE Residential Projects
Table 12: UAE Mixed Development projects
Table 1: Impact Probability Matrix on Drivers
Table 2: UAE Retail PESTLE Analysis
Table 3: Major Shopping Centres Planned in Abu Dhabi
Table 4: Major Shopping Centers Planned in Dubai
Table 5: Major Shopping Centres Planned in Northern Emirates
Table 6: Middle East hotel performance in US$, Q1 2010
Table 7: Dubai Hotel Market Indicators
Table 8: Abu Dhabi Hotel Market Indicators
Table 9: UAE Hotel Projects
Table 10: Dubai Residential Sector Indicators
Table 11: UAE Residential Projects
Table 12: UAE Mixed Development projects
LIST OF FIGURES
Figure 1: UAE Population (Growth Rate in %)
Figure 2: Age-Sex Distribution of the Population of UAE, 2009
Figure 3: UAE GDP Contribution by Economic Activities
Figure 4: UAE Per Capita in '000 US$ (Purchasing Power Parity 2009)
Figure 5: UAE Inflation
Figure 6: UAE Net Foreign Assets
Figure 7: UAE Foreign Assets Holdings (AED Mn)
Figure 8: UAE Exports
Figure 9: UAE Imports
Figure 10: UAE Retail Formats
Figure 11: Impact Probability Matrix on Restraints
Figure 12: UAE Retail Map
Figure 13: UAE Shopping Centres Completed (Beginning of 2010)
Figure 14: UAE Shopping Centres under Development/ Planning
Figure 15: Shopping Mall Supply Growth in Abu Dhabi (m2 GLA)
Figure 16: Abu Dhabi Cumulative Shopping Mall Supply (m2 GLA)
Figure 17: Dubai Retail Supply (m2 GLA)
Figure 18: Dubai - Breakdown of Existing GLA by Type
Figure 19: Northern Emirates Existing vs. Planned Retail GLA m2
Figure 20: UAE Retail Indicators
Figure 21: UAE Tourist Arrivals
Figure 22: % Share of UAE Travel & Tourism to GDP
Figure 23: Dubai Cumulative Hotel Room Supply (Number of Rooms)
Figure 24: Dubai Cumulative Hotel Room Supply (Number of Rooms)
Figure 25: Abu Dhabi Cumulative Residential Supply (Number of Housing Units)
Figure 26: Dubai Cumulative Residential Supply (No of Housing Units)
Figure 27: UAE Retail Sales Per Capita
Figure 28: UAE GLA Completed - 2010
Figure 29: GLA under Development/Planning in UAE
Figure 30: Competitive Overview of UAE Retail Industry
Figure 1: UAE Population (Growth Rate in %)
Figure 2: Age-Sex Distribution of the Population of UAE, 2009
Figure 3: UAE GDP Contribution by Economic Activities
Figure 4: UAE Per Capita in '000 US$ (Purchasing Power Parity 2009)
Figure 5: UAE Inflation
Figure 6: UAE Net Foreign Assets
Figure 7: UAE Foreign Assets Holdings (AED Mn)
Figure 8: UAE Exports
Figure 9: UAE Imports
Figure 10: UAE Retail Formats
Figure 11: Impact Probability Matrix on Restraints
Figure 12: UAE Retail Map
Figure 13: UAE Shopping Centres Completed (Beginning of 2010)
Figure 14: UAE Shopping Centres under Development/ Planning
Figure 15: Shopping Mall Supply Growth in Abu Dhabi (m2 GLA)
Figure 16: Abu Dhabi Cumulative Shopping Mall Supply (m2 GLA)
Figure 17: Dubai Retail Supply (m2 GLA)
Figure 18: Dubai - Breakdown of Existing GLA by Type
Figure 19: Northern Emirates Existing vs. Planned Retail GLA m2
Figure 20: UAE Retail Indicators
Figure 21: UAE Tourist Arrivals
Figure 22: % Share of UAE Travel & Tourism to GDP
Figure 23: Dubai Cumulative Hotel Room Supply (Number of Rooms)
Figure 24: Dubai Cumulative Hotel Room Supply (Number of Rooms)
Figure 25: Abu Dhabi Cumulative Residential Supply (Number of Housing Units)
Figure 26: Dubai Cumulative Residential Supply (No of Housing Units)
Figure 27: UAE Retail Sales Per Capita
Figure 28: UAE GLA Completed - 2010
Figure 29: GLA under Development/Planning in UAE
Figure 30: Competitive Overview of UAE Retail Industry
