GCC retail outlook for 2017

Rupkatha Bhowmick

The year 2016 sprang two surprises globally. The first was Brexit. Even before the world could assess its fallout, Donald Trump scored an unanticipated win in the US presidential election. Uncertainty looms over Eurozone, raising multiple questions that may not have satisfying answers, while unpredictability is the American flavour that could impact the rest of the world…

Lawrence Pinto analyses the various forecasts

For 2017, analysts see retail and food services sales rising 3.7%, slightly lower than in 2016. Most sectors are expected to see as good or better sales growth during the year, though previously strong motor vehicle and restaurant sales may slow down. Trump’s potential tax cuts, combined with predicted wage growth, could see consumer spending getting a boost through 2017.

Closer home, the Gulf Cooperation Council (GCC) countries – Saudi Arabia, the UAE, Kuwait, Qatar, Bahrain and Oman – have been experiencing subdued growth as low oil prices reduce government spending and depress business confidence, the domino effect impacting consumer spending and retail sales across the region.

The full report is available in the January 2017 edition of RetailME