Retail Space Developments In UAE Fuel Industry Growth

The growth of UAE’s retail industry continues to pick up the pace, drawing momentum from the impressive expansion of the local retail real estate landscape.  Based on the latest A.T. Kearney Global Retail Development Index, an annual study that ranks the top-30 developing countries for expansion worldwide, UAE’s ranking improved by two notches in 2017 to land in fifth place behind India, China, Malaysia and Turkey, further strengthening the UAE’s position as the most attractive market in the Middle East.

Improvements have been driven mainly by innovation through the development of unique retail concepts and strip malls designed for specific communities. Experts said that these, complemented by retailers’ efforts to redefine shopping experience by introducing new digital technologies and improving operational efficiencies, help significantly in sustaining local consumer interest and generating wider tourist appeal.

Another real estate services firm, CBRE, revealed similar positive findings.  In their 2017 report, CBRE found that the UAE has just under 2 million square metres of retail space under construction with Dubai accounting for more than three quarters of developments in the country.  This puts UAE closely behind Turkey as the second most active country in terms of shopping centre development in Europe, the Middle East and Africa (EMEA).

Meanwhile, global property consultant Knight Frank, in its ‘UAE Market Review and Forecast 2018’, revealed that demand from international brands to open outlets in the country remains strong with the UAE ranking as the 7th most popular destination of choice for expansion amongst international retailers, further boosting the optimistic outlook for the industry.