Retail space in the Gulf will triple to more than 15 million square metres by 2016, adding more fuel to the $100 billion (Dh367bn) regional market.
"We have experienced 350 per cent year-on-year growth, mirroring the pace of regional retail real estate development," said Naomi Koningen, project manager at IIR Middle East, which is organising Retail City exhibition.
"International industry professionals are eager to participate in what is now clearly recognised as a rapidly expanding market." A recent survey by Retail International noted that 5.3 million sq m of retail floor space is already available and the retail sector is estimated to be worth $100bn (Dh367bn) annually.
Currently the four main drivers behind this retail phenomenon are the cities of Dubai, Abu Dhabi, Riyadh and Jeddah. Dubai remains at the core of this development with 1.3 million sq m of space, with Abu Dhabi, Riyadh and Jeddah each having between 750,000 and 800,000sq m.
This is set to double in a few years with a further 4.6 million sq m of gross leasable area (GLA) currently under construction. Dubai Festival City, Dubai Mall and Mall of Arabia will add some 1.2 million sq m alone.
Elsewhere in the region, another 750,000sq m will be added through developments in Doha at Le Villaggio and The Pearl-Qatar, in Kuwait with the Mall of Kuwait, Al Shobily Grand Mall in Khobar, Saudi Arabia and the new Bahrain City Centre project in Manama.
The justification behind this extraordinary acceleration in retail development is two-fold. Firstly, the numbers of tourists visiting the region is estimated by the World Tourism Organisation to reach 68 million by 2020.
Again Dubai has taken the lead with five million visitors in 2005, which will climb to 15 million tourists by 2010.
Secondly, the population throughout the GCC countries is currently estimated to be 36 million and with the average annual projected population growth set at three per cent (World Development Indicators 2005).
Therefore the region's population should increase to more than 50 million (up 40 per cent) by 2015; Riyadh's population alone will treble to over 15 million inhabitants.
By Emirates Today Staff
© Emirates Today 2007
