GCC retail industry to hit $63.8bn by 2023

Retail sales across four Gulf countries are projected to increase by more than $24 billion over the next five years, with the UAE expected to lead this trend with an estimated growth rate of 16 percent, according to Euromonitor International.

Euromonitor’s research reveals that Kuwait, Oman, Saudi Arabia and the UAE are all set to capitalise on the rise of consumerism thanks to favourable demographics, a rise in population and a strong growth trajectory in tourism and per capita income.

The figures have been released ahead of The Retail Summit, set to take place in February at Dubai’s Atlantis Hotel, gathering 800 of the world’s most prominent retail leaders, industry stakeholders and experts.

The research indicates that the retail industry in the UAE is currently worth $55 billion and is forecast to steadily rise to $63.8 billion by 2023.

Store-based retailing will continue to dominate, accounting for $52.7 billion of the overall market in the UAE, however, non-store retailing, which includes online shopping, direct selling, mobile internet, social media and home shopping, will grow by 78 percent from 2018 to 2023.

The value of non-store retailing is also forecast to increase across all four Gulf markets between 2018 and 2023, with Saudi Arabia expected to account for the biggest growth of 93.5 percent, followed by Oman (68 percent) and Kuwait (48 percent).

Fahad Kazim, vice president, Meydan Malls said: “As the Euromonitor report suggests, the retail sector is bound to grow in the coming years, despite the recent slowdown. The long-term outlook of the sector remains strong and is expected to welcome a steady growth through to 2023.

“A strong contributor to the growth of the sector is proactive initiatives taken by the government in streamlining the retail infrastructure and strengthening the investments and tourism landscape of the region.”

The Retail Summit 2019 will bring headline speakers including billionaire entrepreneur and Virgin Group Founder Sir Richard Branson, Hamad Buamim, president & CEO, Dubai Chamber of Commerce & Industry, and beauty powerhouse Huda Kattan, founder and CEO of Huda Beauty.