Retail sector set to see massive growth

Dubai: The retail explosion in the Middle East, especially Dubai, will lure more international and local brands into the region and help the franchise market grow by 25 per cent per annum.

According to industry experts, the Middle East's $30 billion franchise industry is witnessing "prolific" growth, as various brands here and abroad seek greater market penetration.

They also expect the industry to become the centre of attraction to Europe, Asia and the US markets.

"The Middle East franchise market will continue on its current growth pattern and, together with the development of the retail industry, we predict a bright future for the sector, which is growing at 20 to 25 per cent per annum," said Sary Hamway, chief executive of franchise consultants Franchise Excellence.

Dubai, which is leading the retail industry in the region, is expected to see an explosion in shopping space with the completion of mega complexes such as the Dubai Mall, Oasis Mall, Mirdiff City, Mall of Arabia and the five malls recently announced by Nakheel.

Experts said the opening of such mega structures will not only solidify Dubai's status as the shopping paradise, but will also provide opportunities to entrepreneurs who are looking to set up a business in the Middle East.

"The Middle East market has seen steady growth in the franchise sector. But now, with the number of new retail and entertainment developments opening up, the market is about to see tremendous growth," said Abdul Rehman Falaknaz, president of International Expo Consults, organisers of the Franchising Middle East Exhibition.

Dubai is home to about 6,000 franchise holders in the retail sector.