Booming Retail Sector in UAE - 2009 Edition

Booming Retail Sector in UAE - 2009 Edition

Retail is one of the fastest growing industries in the United Arab Emirates (UAE). In recent years, UAE has emerged as one of the leading countries in the world providing the most conducive retail environment. In fact, UAE is the fourth most attractive destination for retail after India, Russia and China, thanks to its rapid economic growth, rising purchasing power, favorable policy framework, and growing consumer spending.

Despite recession, the retail sector in the UAE continues to grow rapidly with an expected CAGR of over 12% to be achieved during 2009-2013. Factors like increasing household consumption and booming service industry (including tourism, banking and trading sectors) will drive the future growth of the retail sector. Also, the modern shopping malls anchoring state-of-the-art hypermarkets and various shopping events like Dubai Shopping Festival make the country a more lucrative destination for retail industry, says “Booming Retail Sector in UAE”, a market research report by RNCOS.

The per capita gross leasable area in UAE is growing at a blistering pace and surpassed 1 Sq Meter in 2008. This has resulted in significant surge in the country’s retail space and uplifted the retail spending in the country. The trend is forecasted to continue in future as well, helping UAE to emerge as one of the dense retail markets in the world.

Realizing its potential as a promising retail outfit, a number of large international retailers are heading to UAE. Sophisticated retail infrastructure base and oil-based wealth have further attracted the foreign retailers towards the country. This is not only boosting the retail environment in the country but also generating immense employment opportunities for the country’s population.

Our report “Booming Retail Sector in UAE” provides extensive research and rational analysis on various aspects of the UAE retail industry and underlines the key issues related to the industry. The conceptual treatment is provided for all relevant industry segments to facilitate the deep and informative understanding of the market. The research also studies the behavior of the UAE’s consumers with respect to their purchasing power, spending pattern, and inclination towards domestic and foreign brands. The future growth areas discussed in the report helps to analyze the emerging market segments for players.

1. Analyst View
2. Macroeconomic View of Arab World
3. UAE - Economic Analysis and Driving Forces
3.1 Real Estate
3.2 Travel, Tourism and Transport
3.3 Shopping Events
3.4 Dubai Duty Free (DDF)
3.5 Population
3.6 Household Consumption
3.7 Consumer Confidence
4. Market Performance
4.1 Retail Sector Analysis
4.1.1 Food and Beverages
4.1.2 Food Retail Industry
4.1.3 Apparel
4.1.4 Cosmetics and Personal Care
4.1.5 Computers
4.1.6 Air Conditioning Equipments
4.1.7 Consumer Electronics
4.2 Retail Formats
4.2.1 MGR (Mass Grocery Retail)
4.2.2 Malls
5. New Vistas
5.1 Direct Sales
5.2 Advertising Market
5.3 Online Retailing
5.4 RFID in Retail
5.5 CCTV in Retail
5.6 Credit Card Market
6. Industry Roadblocks
6.1 Inflation
6.2 Staffing
6.3 Counterfeit Products
6.4 Tourism-dependent Retail
7. Key Players
7.1 Carrefour
7.2 EMKE Group
7.3 Consumer Co-op UAE
7.4 Spinneys Dubai LLC
7.5 T Choithram & Sons LLC
7.6 Al Azizia Panda United Inc.

List of Figures:

Figure 3-1: GDP by Sector (%), 2008
Figure 3-2: Forecast for Real GDP Growth (%), 2009-2013
Figure 3-3: Total Consumption (Billion AED), 2003-2008
Figure 3-4: Forecast for Total Consumption (Billion AED), 2009-2013
Figure 3-5: Spending on Existing Construction Projects (Billion US$), 2007 & 2008
Figure 3-6: Tourist Arrivals (Million), 2008 & 2016
Figure 3-7: Retail Sales during DDF in Dubai (Million US$), 2006-2008
Figure 3-8: Forecast for Population (Million), 2009-2013
Figure 3-9: Per Head Household Consumption (‘000 US$), 2006-2008
Figure 3-10: Forecast for Per Head Household Consumption (‘000 US$), 2009-2013
Figure 4-1: Retail Sales (Billion US$), 2006-2008
Figure 4-2: Forecast for Retail Sales (Billion US$), 2009-2013
Figure 4-3: Share of Dubai in GCC Organized Retail Market (2008)
Figure 4-4: Share of Gross Leasable Area in GCC (2008 & 2012)
Figure 4-5: Shopping Mall Cumulative Supply in Dubai (Gross Leasable Area - Million Sq Meter), 2006-2008
Figure 4-6: Forecast for Shopping Mall Cumulative Supply in Dubai (Gross Leasable Area - Million Sq Meter), 2009-2013
Figure 4-7: Shopping Mall Cumulative Supply in Abu Dhabi (Gross Leasable Area - ‘000 Sq Meter), 2006-2008
Figure 4-8: Forecast for Shopping Mall Cumulative Supply in Abu Dhabi (Gross Leasable Area - ‘000 Sq Meter), 2009-2013
Figure 4-9: Retail Market by Upcoming Retail Locations in Abu Dhabi (%)
Figure 4-10: Foodstuffs, Beverages, Spirits and Tobacco Imports (Billion US$), 2002-2008
Figure 4-11: Food Service Market (Billion US$), 2008-2013
Figure 4-12: Forecast for Food Retail Sales (Billion US$), 2009-2013
Figure 4-13: Textile and Textile Article Imports (Billion US$), 2002-2008
Figure 4-14: Cosmetics and Personal Care Market (Million US$), 2006-2008
Figure 4-15: Forecast for Cosmetics and Personal Care Market (Million US$), 2009-2013
Figure 4-16: PC Installation Base (Million Units), 2002-2008
Figure 4-17: PC Shipment (‘000 Units), Q3 2006 to Q3 2008
Figure 4-18: Forecast for PC Installation Base (Million Units), 2009-2013
Figure 4-19: Air Conditioning Equipments Demand by Product
Figure 4-20: Forecast for Air Conditioning Market (Billion AED), 2009-2013
Figure 4-21: Retail Sales by Format (Billion US$), 2001-2012
Figure 4-22: Malls in Dubai (Number), 2005 & 2008
Figure 5-1: Advertising Expenditure (Billion US$), 2006-2008
Figure 5-2: Internet Penetration (%), 2002-2008
Figure 5-3: Forecast for Internet Penetration (%), 2009 & 2013
Figure 5-4: Safety and Security Market (Million US$), 2006-2008
Figure 5-5: Forecast for Safety and Security Market (Million US$), 2009-2013
Figure 6-1: Inflation in Food Prices (%), 2007 & 2008
Figure 7-1: Retail Sales of Top Ten Retailers (Million US$), 2007
Figure 7-2: Number of Stores and Sales Area of Carrefour (‘000 Sq Meter), 2004-2007
Figure 7-3: Number of Stores and Sales Area of EMKE Group (‘000 Sq Meter), 2004-2007
Figure 7-4: Number of Stores and Sales Area of Spinneys (‘000 Sq Meter), 2004-2007

List of Tables:

Table 2-1: Per Capita Nominal GDP in GCC Countries (‘000 US$), 2002-2008
Table 2-2: Population in GCC Countries (Million), 2001-2008
Table 3-1: Nominal GDP (Billion AED), 2002-2008
Table 3-2: Per Capita GDP by Emirate (AED), 2002-2007
Table 3-3: Population by Emirate (‘000), 2002-2008
Table 4-1: Top 15 Countries by Proportion of International Retailers Trading (2007 & 2008)
Table 4-2: Top 15 Cities by Proportion of International Retailers Trading (2008)
Table 4-3: Air Conditioning Market (Million AED), 2002-2008
Table 4-4: Electronic Goods Sales by Category in Dubai (Million AED), 2004-2006
Table 4-5: Retail Format by Store Count (2003 & 2006)
Table 4-6: Share of Top Five Retailers (2007)
Table 4-7: Major Mall Supply in Dubai
Table 4-8: Major Mall Supply in Abu Dhabi