The UAE's retail sector will grow by more than a tenth annually until 2013, driven by higher spending and a boom in services, a report said on Thursday, despite continued concerns over when the global economic recession will ebb. Research firm RNCOS predicted the UAE's retail sector will grow 12 percent a year. In June, RNCOS had said it expects the Middle East's retail sector to grow 14 percent a year. The report's claims are in stark contrast to plummeting sales figures experienced by many retailers and worries about the impact of an oversupply of retail space, especially in once booming Dubai. The UAE's economy grew 7.4 percent in 2008. Economists suggest 2009 could be flat with growth returning slowly next year. The RNCOS report said the Gulf state ranked fourth in the most attractive destinations for retail after India, Russia and China. It said the UAE's popularity stemmed from a number of contributing factors, including its rapid economic growth, rising purchasing power and growing consumer spending. In recent years, UAE has emerged as one of the leading countries in the world providing the most conducive retail environment. In fact, UAE is the fourth most attractive destination for retail after India, Russia and China, thanks to its rapid economic growth, rising purchasing power, favorable policy framework, and growing consumer spending. Despite recession, the retail sector in the UAE continues to grow rapidly with an expected CAGR of over 12 percent to be achieved during 2009-2013. Factors like increasing household consumption and booming service industry (including tourism, banking and trading sectors) will drive the future growth of the retail sector. Also, the modern shopping malls anchoring state-of-the-art hypermarkets and various shopping events like Dubai Shopping Festival make the country a more lucrative destination for retail industry, said “Booming Retail Sector in UAE”, a market research report by RNCOS. The per capita gross leasable area in UAE is growing at a blistering pace and surpassed 1 sq meter in 2008. This has resulted in significant surge in the country's retail space and uplifted the retail spending in the country.
