Business | Economy
Middle East retail boom to resist global slowdown
The retail phen-omenon sweeping through the Middle East - and Arabian Gulf states in particular - is robust enough to withstand a US-led global economic downturn, says an industry expert.
- Staff Report
- Published: 23:31 February 4, 2008
Dubai: The retail phen-omenon sweeping through the Middle East - and Arabian Gulf states in particular - is robust enough to withstand a US-led global economic downturn, says an industry expert.
"With the Middle East retail sector estimated to be worth in excess of $100 billion annually, second only to residential property in the non-oil economy, the issue is of critical importance, but one which the GCC economies can cope with," said Naomi Koningen, Project Manager of Retail City 2008, organised by IIR Middle East.
"Dubai, in particular, has one of the most saturated retail environments in the world and is the regional hub for retail therapy accounting for a quarter of the total retail space in the GCC. According to the Department of Tourism and Commerce Marketing (DTCM), Dubai's tourist arrivals grew to 5.1 million in the first nine months of 2007, almost five times the size of Dubai's population," Koningen added.
Retail City, which takes place from June 1 to 3 at the Dubai International Exhibition Centre, will bring together global retailers, investors, shopping centre developers, franchise networks, shopping centre managements, architects and regional authorities to focus on all aspects of the retail development cycle.
Contrast
"The current global credit crunch may have emanated in America but in most emerging markets, local sources of economic growth, including consumer spending, have firmly taken root," Koningen added.
One major difference is that the US and the UK economies in particular rely heavily on consumer spending. For example, retail sales in the US contribute up to 70 per cent of their GDP and according to Morgan Stanley, Americans spent an estimated $9.5 trillion last year.
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