Kuwait's retail sales will grow from $41.59 billion in 2009 to $59.27 billion by 2014, a new report on the country's retail industry said on Wednesday. The new market research report filed by companiesandmarkets.com said key factors behind the forecast growth in Kuwait's retail sales are a favorable long-term economic outlook, a sophisticated consumer base and high levels of disposable income. Kuwait's nominal GDP was $113.38 billion in 2009, with 2009's decline of 2.4 percent expected to translate into growth of 2.0 percent in 2010 as the economy slowly begins to recover. Average annual GDP growth of 2.0 percent is now predicted by BMI between 2009 and 2014. With the population rising from its 3.2 million in 2009 to reach 3.5 million by the end of the forecast period, GDP per capita is predicted to rise by more than 53 percent by 2014, reaching $53,950. Approximately 80 percent of the Kuwaiti population are expatriates, while foreign workers crossing the border from Iraq also stimulate the retail market. In 2005, 73.8 percent of the Kuwaiti population was described by the UN as economically active, with 37.9 percent in the 20-44 age range, important to retail sales. By 2010, 74.6 percent of the population is expected to be active, while the proportion of those in the 20-44 age band is forecast to reach 39.4 percent. A very high level of urbanization is also contributing to a vibrant retail sector. In 2005, more than 96 percent of the population was classified by the UN as urban, and this is forecast to increase to almost 99 percent by 2015. According to Arabianbusiness.com, by 2010 the gross leasable area (GLA) in Kuwait's retail sector is expected to total 1.15 million m2, compared with the 345,000m2 in use in 2006. Property consultant Colliers International expects Kuwait to have the third -largest supply of retail space in the Gulf by 2010. According to BMI data, retail sub-sectors that are predicted to show strong growth over the forecast period include consumer electronics, with sales increasing from $0.68 billion in 2009 to US$0.95 billion by the end of the forecast period, a rise of nearly 39 percent. Sales of over the counter (OTC) pharmaceutical products are predicted to increase by more than 36 percent, from $1.40 billion in 2009 to $1.90 billion by 2014. Automotive sales are forecast to rise by nearly 15 percent, from $3.31 billion in 2009 to $3.80 billion by 2014. Retail sales in Middle East and Africa (MEA) countries in 2009 amounted to an estimated $407.66 billion, based on the varying national definitions. Total consumer spending for the region based on BMI's macroeconomic database amounts to $704.94 billion. In 2009, the UAE, Saudi Arabia, Egypt and South Africa together accounted for an estimated 78.4 percent of regional retail sales, and their combined share is expected to rise to 81.3 percent by 2014. For Kuwait, the estimated 2009 regional market share of 10.2 percent is expected to ease to 9.3 percent by 2014.
