The UAE leads the Middle East and North Africa (MENA) in regard to the business of retail and with plenty of valid reasons. The 2016 version of “Global Retail Development Index” (GRDI) confirms the UAE’s pivotal role in emerging economies in this space.

Issued for the first time in 2002, the Index focuses on the top 30 developing economies deemed as most attractive for retail investments. Reflecting its economic might, population and size, China leads the list with India following.

And for the same reasons, the Index has removed three Gulf countries from the 2016 listings, namely Qatar, Oman and Kuwait on the back of a requirement increasing the minimum level of population to be included in the survey.

Much to its credit, Qatar achieved the fourth place in the 2015 version behind China, Uruguay and Chile. Clearly, it is not fair to remove Qatar from the study given its accomplishment in earlier versions of the report.

The Index assigns country’s scores on the basis of four variables, namely market attractiveness, country risk, market saturation and time pressure. A market’s attractiveness variable primarily focuses on retail per capita and includes population plus business efficiency.

Moreover, the country risk element essentially looks into issues like economic performance, debt, ratings and access to bank financing. Still, the market saturation variable caters to modern retailing, availability of international brands, and market share of leading retailers. The time pressure takes into account sales in the context of general economic development and forward-looking trends.

Only two GCC countries are included in the study, namely the UAE and Saudi Arabia, achieving the 7th and 8th rankings. China, India, Malaysia, Kazakhstan, Indonesia and Turkey are ranked ahead.

The 2016 report ranks Turkey as the sixth best retail market. However, the UAE could overtake Turkey’s position in the light of sociopolitical turmoil engulfing Turkey followed the failed coup. Visiting Turkey following the coup, it was easy to note the complaints about the fall in the number of number of tourists and hence spending due to ongoing political confusion.

Dubai for one is regarded as the most dynamic retail hub within the GCC, the Arab League and MENA at large. It is not unfair to claim that Dubai has the ability of reinventing its market potential on a regular basis. The Expo 2020 should further strengthen the emirate’s position as a premier business centre in the GCC and beyond.

The aviation industry is a major contributor to the UAE’s retail power. Collectively, Emirates, Etihad, Air Arabia and Flydubai are credited for bringing in millions of visitors to the country. In fact, Emirates is considered the most international of carriers in the world, carrying some 51.9 million passengers in 2015.

Concerning Saudi Arabia, Vision 2030 should solidify the kingdom’s economic position. Among other things, the vision calls for tripling the number of people performing Umrah, which takes place anytime except during the annual Haj; currently, some 8 million perform Umrah annually.

This should be made possible following the completion of expansion works in and around the Grand Mosque in Makkah. Pilgrims contribute to Saudi Arabia’s retail market through their spending on foodstuff, telecommunications and transportation.

Clearly, the GCC markets have untold potential in retail.

The writer is a Member of Parliament in Bahrain.