Dubai ranks number three in terms of new market entrants, having welcomed 59 new brands in 2016, according to the tenth edition of “How Global is the Business of Retail?” report by global property advisor CBRE. Doha, on the other hand, rose six places in the new entrants’ ranking, with 58 new brands establishing themselves in 2016 compared with 29 in 2015.
Among Dubai’s new entrants 32% were specialist retailers, many of which were athletic-leisure brands such as Under Armour, Jordan, New Balance and GapFit. These fashion-infused sportswear retailers are targeting the young working population of the emirate.
Doha has transformed its retail market in the past few years with the development of many large-scale malls offering more extensive retail and leisure facilities. This has led to widespread demand from retailers for these centres that provide a unique experience and embrace place-making principles.
Globally, the report revealed that Hong Kong retained its position as the top target market for new entrants in 2016 with 87 new entrants, followed by London in second place with 65 new entrants.
Dubai also retained second position for international retailer representation for the sixth consecutive year, closely behind London which retained the number one position. With high occupancy levels in major retail hubs and many malls approaching full capacity, Dubai’s overall retail sector remained resilient in 2016.
The UAE’s F&B sector has shown an upward trajectory as consumer spending on socialising and eating out continues to grow with UAE nationals and expatriates alike. The food truck industry – a rising new phenomenon – is one of the best performing segments in the F&B sector in the UAE and is.
“Dubai’s global air connectivity and its stature as a hub for trade between the east and west have clearly given an added impetus to the retail sector. Dubai continues to remain the clear destination of choice for the majority of the brands looking to enter the region, frequently using the emirate as a stepping stone to wider regional expansion programmes,” says Nick Maclean, managing director, CBRE Middle East.
Spurt in e-commerce activities
The report also predicts a major push for e-commerce in the Middle East with rapidly evolving online shopping over the last decade. With a dynamic, young population and one of the highest global per capita internet penetration levels, the online spending potential is quickly emerging as one of the highest in the world. This growth is underpinned by the entry of global retail giant, Amazon into the region with the acquisition of SOUQ.com, along with the creation of Noon.com.
“With a rapidly expanding internet audience and strong logistics infrastructure from the ground up offered by companies such as Fetchr, the Middle East has become a fertile soil for e-commerce. Currently the e-commerce market is dominated by a handful of players; however, rapid growth in the sector and the upward trajectory of local companies has attracted an influx of investment in recent years. The evolution in consumer behaviour, mobile technology and retail shopping will continue to revolutionise the e-commerce sector in the region in the years to come,” adds Maclean.
“Despite regional economic challenges, Dubai remains a preferred market for leading international and regional retailers that can provide plenty of incentives and growth opportunities. Dubai’s fast-growing population, cosmopolitan nature and thriving tourism market are key factors that support the performance of retailers in the emirate. Dubai Chamber is committed to promoting Dubai’s retail sector on a global level, while launching initiatives that support its growth and development,” states Hamad Buamim, president & CEO, Dubai Chamber of Commerce & Industry.
“We are delighted that our home base Dubai continues to perform very strongly,” observes Ahmed Galal Ismail, CEO, Majid Al Futtaim – Ventures. “Moreover, CBRE’s findings are in line with what we’ve noticed across our retail, specifically athleisure and speciality retail, F&B and leisure destinations; growth lies in brands that offer experiential concepts and a superior customer experience. We are also pleased to see that the brands we introduced to Doha have contributed to its position as a new retail destination. We foresee the same happening in Cairo, Abu Dhabi, Muscat and Riyadh as we expand our presence in these markets.”
Zebra Technologies Corporation, an innovator at the front line of business withNovember 17, 2021 | By RetailME Bureau
Dubai Festivals and Retail Establishment (DFRE) has put together a round-up ofNovember 11, 2021 | By RetailME Bureau
UAE-based Etisalat Group has signed an agreement with elGrocer, a leading online
Amazon.ae announced that the 11.11 sale is back once again this year
Abu Dhabi Cooperative Society’s COOP City store is now open in Lake
Union Coop, a consumer cooperative in the UAE, revealed that 78% of
Union Coop has opened its 23rd branch within the UAE in Jumeirah
Nando’s has revealed their revamped Sheikh Zayed Road outlet where newcomers and
UAE-based Al Maya Group announced that it will be boosting import of
UAE-based grocery retail chain, Grandiose has opened its first hypermarket in Abu
UAE-based Carrefour announced its theme and plans for Ramadan 2021. The brand
Locally owned supermarket Spinneys celebrates 60 years of doing business in the
UAE-based Carrefour will become the first retailer in the region to offer new levels
The festive shopping season represents a significant portion of retailers’ annual revenue,
Zebra Technologies Corporation, an innovator at the front line of business with
There is a large trust gap between shoppers and retailers, according to
Noon.com announced its biggest ever Yellow Friday Sale running from the 22nd until 28th November. The
Market research and data analytics firm, YouGov has revealed the top-ranked retail
After returning from World War 2, a man decided to go into
More than a third (37%) of UAE consumers would rather switch retailers
A global survey conducted by Foresight Factory, released in partnership with Snap,
The Ministry of Human Resources and Social Development in Saudi Arabia has
China’s retail economy saw a slump in July as a result of
New data from Majid Al Futtaim shows that the UAE retail market’s recovery is continuing.
Masks and make-up don’t really go hand-in-hand right? Despite that, the Middle