Retail News Update

As per Retail City 2007, the sheikdom of eastern UAE, Dubai, has turned into the most attractive destination for retailers due to vast availability of real estate and now retail sector has become vital for the city’s growth.
From June 3 to June 5, 2007, Dubai organized the Retail City 2007 and registered the participation of over 3500 professionals from retail industry. It was an industry platform for investment and development of retail realty, closed at the Dubai International Exhibition Centre.A major development at the event was the number of international trade visitors from developing Eastern Europe and Asian markets. Inaugurating the show, HE Sultan Ahmed bin Sulayem, Head, Dubai Ports World, stated, “The retail sector is vital to the growth of Dubai and we will continue to support events such as Retail City”, in a statement reported by Albawaba on June 18, 2007.

Middle East is undergoing a retail revolution and the current value of retail sector is estimated at US$ 100 Billion. But in recent times, dealers of luxurious properties have particularly been very successful because of the emergence of Dubai as a unanimous choice for retailers. And shopping being among the favorite leisure activities in the city, developers are constructing holistic shopping cum entertainment destinations to cater to the rapidly changing needs of locals and tourists.

The RNCOS report “Middle East Retail Sector Analysis (2007-2010)” identifies huge availability of real estate for retail sector as the reason for this. Dubai has emerged as a retail hub in the entire Middle East (ME). The city accounted for nearly 1000 Square Meter of retail space for every 1000 people, or over 50% of the total retail space across UAE.Colliers International, a top property service consultants globally, said, Dubai is poised to see the biggest actual increment in Gross Leasable Area (GLA) by the decade end, from around 1.35 Million Square Meter in 2006 to over 4 Million Square Meter. As against some other states in Gulf Cooperation Council, Dubai’s retail realty will not stagnate in foreseeable future.

According to “Middle East Retail Sector Analysis (2007-2010)”, a report by RNCOS, the ME retail market is principally concentrated in GCC and it will grow triple-fold by 2016. It is because the thriving tourism industry and growing regional population incite the long-term prospects for the retail industry of the region. Dubai will account for 30% of the total retail space in GCC during 2006 to 2010.