02 June 2015
Luxury brands are adapting their strategies to succeed in diverse and evolving emerging markets

The Global Retail Development Index (GRDI) released today by A.T. Kearneyhas placed six Middle Eastern countries in the top 30 most-attractive markets for development opportunities in retail. Following a year that saw oil prices drop, the region has remained an attractive destination for retailers. According to the report, the key focus for the region will be on the long-term prospects for growth in the retail sector. The six Middle Eastern countries in the 2015 GRDI are Qatar, UAE, KSA, Jordan, Oman, and Kuwait.

Martin Fabel, Partner and Global Head of the Strategy Practice, A.T. Kearney Middle East, commented:"Despite the record drop in oil prices, our work with consumer industries and retail clients show that retail sales growth is expected to continue. Indeed, the retail space pipeline remains strong, with several major projects under way in Qatar, the UAE, and Oman." 

Qatar makes an impressive GRDI debut, in 4th place, highest in the Middle East behind a stable economy, high GDP per capita, high levels of retail spending, and increased retail space. With population growth and an increasing number of expats, Qatar is no longer a market to ignore. The country's economic strength also lies in infrastructure projects that will benefit the economy in the long term, such as the airport expansion and the construction of Doha Metro.

Shamail Siddiqi, Principal of the Consumer and Retail Practice, A.T. Kearney Middle East,stated: "The Middle East has once again demonstrated its strength as a region of opportunity for the retail sector. It's clear that strategies implemented by each country has allowed it to flourish. The demographics and mega-projects make this is a very exciting time for retailers in the region to develop long-term success in the Middle East."

The 2015 GRDI includes a special feature on the prospects for luxury goods in developing markets. "Luxury remains a relatively bright spot in emerging markets, as the wealthy have proven less vulnerable to economic woes than the general population," asserted Fabel.

Thefeature includes an analysis of the 15 leading luxury brands and their presence in the GRDI's top 30 countries. The analysis shows that emerging markets fall into three tiers of luxury development, with different implications for brands looking to enter or expand in these markets. Overall, the region represents an established luxury market, with four out of the six countries hosting 13 or more top 15 brands. There are opportunities for luxury retailers in the region to ensure they fully serve the regional luxury demand.

To read the full 2015 GRDI report, please go to www.grdi.atkearney.com.

2015 Global Retail Development Index Ranking 



-Ends-

About A.T. Kearney
A.T. Kearney (www.atkearney.com) is a global team of forward-thinking partners that delivers immediate impact and growing advantage for its clients. We are passionate problem solvers who excel in collaborating across borders to co-create and realize elegantly simple, practical, and sustainable results. Since 1926, we have been trusted advisors on the most mission-critical issues to the world's leading organizations across all major industries and service sectors. A.T. Kearney has 58 offices located in major business centers across 40 countries. From our Middle East offices in Abu Dhabi, Dubai, Manama, Doha and Riyadh, A.T. Kearney supports both private and public sector clients as well as nations to excel and prosper by combining our regional expertise and global business insights to achieve results. For more information, visit www.middle-east.atkearney.com

About the A.T. Kearney Global Consumer Institute
The A.T. Kearney Global Consumer Institute is a worldwide network of professionals and executives. The Institute combines proprietary and public data resources with local knowledge to deliver strategic and operational insights to executives in consumer-facing industries seeking long-term growth and competitive advantage. For more information, please contact gci@atkearney.com.

© Press Release 2015