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Abu Dhabi ranks fourth amongst the top 20 hottest retail markets -
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Luxury brands account for a quarter of new market entrants globally -
Dubai,
28th
May 2014 – Dubai retained its
position as the second most important international retail
destination globally for the third consecutive year, closely behind
London, which also retained its number one position, according
to the 2014 edition of How
Global is the Business of Retail?
by leading global real estate consultancy firm CBRE. London
and Dubai are significantly ahead of New York, Moscow and Shanghai,
the other locations which make up the top five.
CBRE’s
annual survey - now in its seventh year - analyses the operational
networks of 334 leading international retailers across 189 cities and
61 countries covering the vast majority of the world’s economy. The
report’s findings were revealed in the Middle East with the Dubai
Chamber of Commerce and Industry at their headquarters in Dubai, and
in association with Majid Al Futtaim Properties.
Nick
Maclean, Managing Director, CBRE Middle East, stated, “Dubai’s
success in retaining its
position as the second most important city in terms of international
retailer presence underpins its status as a regional hub for business
and tourism. The retail sector remains one of the most vital streams
for economic activity in the Emirate and the industry is likely to
witness significant growth in the lead up to Expo 2020 in six years’
time.”
“Dubai
saw 19 new retail entrants during 2013, and with a number of major
malls under development and some of the existing ones undergoing a
face lift, the Emirate is anticipated to garner further interest from
international retailers looking to enter the region.”
H.E.
Hamad Buamim, President & CEO, Dubai Chamber, said, “The UAE
economy has been witnessing steady growth over the last few years.
Dubai has clearly benefitted from the economic competitiveness and
the emirate’s retail sector continues to be driven on the back of
strong growth exhibited by tourism, aviation and capital inflow.”
“Dubai
provides unparalleled level of opportunities for foreign businesses
and remains the focal point for tourism and trade in the region. The
quality of available retail space and future outlook is added
incentive for global retailers looking for expansion. Aligned with
its vision 2020, the Dubai Government is boosting its tourism sector,
through which it aims to attract 20 million visitors per year that
will eventually provide further impetus to the retail industry. In
addition, Expo 2020 and developments in the Islamic economy will
provide new opportunities for innovative retailers moving forward.”
This
year’s report also looked at the world’s “Hot Markets”
providing a comprehensive overview of the cities that retailers
targeted in 2013. According to the report, Abu Dhabi ranked fourth
amongst the hottest retail markets attracting 42 new brands in 2013.
Paris took the lead position, attracting significantly more new
retailers than any other city with a total of 50 new retailers.
“For
many global retailers, the Middle East is a prime location for new
representation and with a substantial shopping centre pipeline under
development, Abu Dhabi represents a significant opportunity for them.
The opening of The Galleria, in prime location on Al Maryah Island,
has provided a meaningful high-end retail destination, and as a
result, a large number of new luxury international brands were
attracted to the capital,” added Maclean.
According
to the report, retailers
focused on more mature markets in 2013 with 18 of the top target
cities considered mature markets compared with only 14 in the
previous year. 83% of the survey cities saw at least one new entrant
in 2013 (compared with 81% the year before); with the top target
markets seeing a 28% rise in new entrants.
George
Kostas, CEO, Majid Al Futtaim Properties, said: “The UAE’s
economic growth is back on track and retailers continue to be driven
by the prospects of rise in consumer purchasing power, a growing
young population and an ever increasing level of fashion
sophistication. The UAE’s growing appeal as a multi-cultural hub
and lifestyle destination provides ideal conditions for luxury retail
brands to flourish.”
“Our
Dubai-based shopping malls have seen an 8% growth in footfall to 81
million visitors, with a significant share for tourists who accounted
for 25% of visitors to Mall of the Emirates in 2013. We are certain
that demand will continue to rise and, as such, we are investing AED
3 billion to ensure that our facilities are enhanced and expanded in
order to meet future demand. This includes a multi-phase
redevelopment of Mall of the Emirates worth AED 1 billion, an AED22
million redevelopment project of City Centre, Deira and a new
shopping mall in the International Media Production Zone of Dubai. It
will also include major investments in our hospitality portfolio with
a 370-room hotel under the Hilton Garden Inn brand and two luxury
hotels in the planning phase,” Kostas added.
The
report found that the overall
footprint of global retailers at country level grew by 1.7%. Over
half of retailers (51%) are now present in all three major global
regions, The Americas, Europe Middle East and Africa (EMEA) and Asia
Pacific, a slight increase on the previous year.
The
number of new entrants at city level was up by 26% year-on-year, with
an increasing number of retailers crossing borders to grow their
businesses.
London is
the home of more international brands than any other city, yet it
still attracted 31 new market entrants last year. Other cities in the
top ten included Beijing, Moscow, Shanghai, Frankfurt, Taipei and
Singapore.
The
Luxury and Business Fashion sector accounted for the highest
proportion (24%) of new market entrants globally. One third (32%) of
all new entrants to the Americas were from this sector which is a
direct reflection of the improved outlook for US consumption.
