Retail sales in 4 Gulf states to grow $24bn by 2023

Dubai / Emirates Business

Retail sales across four Gulf countries are projected to increase by more than $24 billion over the next five years, with the UAE expected to lead this trend with an estimated growth rate of 16%, according to new research from Euromonitor International.
Euromonitor’s report reveals that Kuwait, Oman, Saudi Arabia and the UAE are all set to capitalise on the rise of consumerism thanks to favourable demographics, a rise in population and a strong growth trajectory in tourism and per capita income.
The figures have been released ahead of The Retail Summit, set to take place from February 13 to 14, 2019 at Dubai’s Atlantis Hotel, gathering 800 of the world’s most prominent retail leaders, industry stakeholders and experts.
The two-day summit, held under the patronage of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, has received endorsement with support of Meydan One, which joins Dubai Chamber of Commerce & Industry as an event partner.
The research indicates that the retail industry in the UAE is currently worth $55 billion and is forecast to steadily rise to $63.8 billion by 2023. Store-based retailing will continue to dominate, accounting for $52.7 billion of overall market in the UAE, however, non-store retailing, which includes online shopping, direct selling, mobile internet, social media and home shopping, will grow by 78% from 2018 to 2023.
The value of non-store retailing is also forecast to increase across all four Gulf markets between 2018 and 2023, with Saudi Arabia expected to account for the biggest growth of 93.5%, followed by Oman (68%) and Kuwait (48%).
Fahad Kazim, Vice President, Meydan Malls said: “As the Euromonitor report suggests, the retail sector is bound to grow in the coming years. The long-term outlook of the sector remains strong and is expected to welcome a steady growth through to 2023.
“A strong contributor to the growth of the sector is proactive initiatives taken by the government in streamlining the retail infrastructure and strengthening the investments and tourism landscape of the region.”
Kazim added: “The traditional retail environment in the region is evolving and as it continues to grow, it is gradually moving towards a phygital experience. The e-commerce market, which is gaining momentum, will be a huge contributor to the growth of the retail sector in the coming years.
“Keeping up with this trend, the brick-and-mortar retailers are expected to gradually adopt omni-channel business model to estab- lish an intuitive and smart comm-unication with consumers across online and offline platforms.”