JEDDAH – Four Gulf countries entered the top 20 of A T Kearney Index for Retail Trade Growth in 2013. The UAE is ranked fifth in the latest classification of A T Kearney Index for Retail Trade Growth in 2013, while Kuwait was ranked ninth, and Saudi Arabia 16th and the Sultanate of Oman ranked 17th. A T Kearney's 2013 index of top ranked emerging markets for global retail investment indicate the continued strength of the GCC's retail sector. In the 13th edition of Global Retail Development Index (GRDI), four GCC countries retain their position in the top 20, the UAE fifth, Kuwait 9th, Saudi Arabia 16th and Sultanate of Oman 17th. Globally, Brazil continues to lead the table for the third year in a row and as Chile retains 2nd position, Uruguay moves upward to third, according to A T Kearney, a global management consultancy. “The GCC retail sector has witnessed exponential growth in 2012 fueled by increasing tourist flows and new retail projects. In 2012, Dubai saw the entry of US-based brands Victoria's Secret, Cheesecake Factory, and IHOP through franchise agreements.” said Dr. Martin Fabel, Partner and head of Consumer Industry and Retail Practice, A T Kearney Middle East. The UAE moved up index from 7th to 5th, as its high retail sales and per-capita consumer spending, rising consumer confidence, slight population increase and its position as a regional tourism hub make it an attractive destination for retailers. Demand continues to grow in Dubai, despite it being saturated with global brands. European concepts are fully represented now and no longer represent a way for malls to stand out. Demand is now shifting to American concepts and food and beverage. “Retailers are updating and repackaging their existing offerings. Chalhoub Group, a leading luxury retailer, opened the largest shoe store in the world in Dubai Mall, featuring leading brands such as Gucci and Louis Vuitton. Prada opened its biggest boutique in the Middle East in Dubai Mall at the end of 2012. In Abu Dhabi, major investments in infrastructure, universities, arts and cultural events are taking place and consumers are demonstrating an appetite for luxury concepts,” added Fabel. Continued infrastructure investment in the GCC is expected as retail sector set to surpass $220 billion by 2015. In a bid to diversify the regional and national economies and boost levels of non-oil GDP, the GCC nations continue investing in infrastructure, according to a recent QNB report. Growth in the MENA region is forecasted at 3.5 to 4 percent for 2013 and 4.5 to 5 percent next year, although global economic headwinds and uncertainty within the political climate of several GCC nations may affect those plans. Robust demand in the private sector and rising levels of public investment continue to trigger expansion in the GCC non-oil sector, while weaker gas and oil prices are expected to stifle growth in the region's hydrocarbon sector. – SG
