Monday, Jul 02, 2012
Dubai: The retail sector in the UAE is headed north literally. Mall developers and leading local and regional retail brands are now focusing a great deal of attention on Ras Al Khaimah, one of the northern emirates.
And as focal points for all of the incoming attention, there are the newly opened RAK Mall and Manar Mall, which is going through a major expansion. So, what is the premise behind the uptick in retail activity?
Ras Al Khaimahs residents until recently had to be content with only one major retail offering which had been existent for the past 10 years, said Raja Abdul Khader, Director at Line Investment & Properties and promoter of RAK Mall. Its only a natural process of market dynamics that alternative options become available.
Considering Ras Al Khaimah has a higher weekend traffic due to the working population returning over the weekend, malls have to focus more on the entertainment and leisure options as the floating population might be more exposed to other retail offerings [fashion and other ancillary mix] in their places of work in Abu Dhabi or Dubai.
Retail demand in the emirate is principally led by domestic shoppers, though it did pull in 830,000 tourists last year and expected to grow by nearly 20 per cent this year. But logic suggests that these tourists would have enjoyed the rest and recreation that Ras Al Khaimahs hotels offer while for their shopping they would have gravitated to the mega malls in Dubai.
This is what Ras Al Khaimahs mall owners want to stanch by upgrading the shopping, leisure and entertainment options. This is crucial as the emirate is starting to pull in more high-spending tourists. The number of luxury hotels has doubled over the past four years and next year will see the opening of the Waldorf Astoria Hotel in Al Hamra Village, said Benoy Kurien, general manager of Al Hamra Group and owner of Manar Mall.
The emirate is set to open more properties and hotels and that will further generate greater potential for retail and food and beverage venues. Ras Al Khaimah did not feel the impact of the financial crisis as acutely as some of the other emirates and therefore rentals held steady. Sales in Manar Mall and Al Hamra Mall have shown signs of growth in the past six months and consequently we have seen keen competition between retailers for space.
By Manoj Nair, Associate Editor
Gulf News 2012. All rights reserved.
