(MENAFNEditorial)
Despite the fall in oil prices which damaged the oil dependent economy of the UAE there are strong forecasts for growth in the region. With GDP expected to see growth of 4.0% in 2015 household spending is also expected to see strong gro wth during our forecast period. Most of this spending goes on housing and utilities illustrating the high costs of living in the country ; but there still exists a number of opportunities for retailers in the country .
The UAE is highly reliant on oil revenue; as a result the fall in oil prices during the end of 2014 and beginning of 2015 resulted in a damage to the UAE economy. However the prices have stabilised to around USD60 a barrel which looks to be the new normal and the UAE economy continues to grow overall. Real GDP increased by 3.9% in 2014 a marked improvement from growth of just 1.6% in 2010. We expect to see real GDP growth reach 4.0% in 2015 and this will bode well for growth in the UAE's retail market. Household spending is expected to increase as GDP increases due to higher levels of income. The increase in household spending is driven by the increase in total households as well as the increase in households in the high-income bracket. However the increase in household spending is offset by the fact that 40% of it is consistently taken up on expenditure on housing and utilities due to the extremely high rates of rent in the UAE. Outside of spending on housing and utilities spending on food and drink represents the largest area of spending whilst spending on clothing and footwear represents the fastest growing sub-sector during our forecast period.
Full Report Details at
-
The UAE offers a wide range of modern organised formal retail formats which residents are already comfortable and familiar with. Shopping mall complexes which are very common and extremely popular with local residents and tourists alike are found in the big cities of Dubai and Abu Dhabi in particular. The biggest and most visited malls are located...
The United Arab Emirates Retail Report has been researched at source and features BMI Research's independent assessment and forecasts for the retail sector. The report examines key drivers of retail sales growth and future prospects including consumer spending and private sector investment.
BMI's United Arab Emirates Retail Report also examines the level of development and potential for growth of the retail sector the commercial initiatives of major players changing consumer demographics that influence demand and the regulatory environment. Key sub-sectors include mass grocery retail autos over-the-counter pharmaceuticals computers and consumer electronics.
Key Benefits
* Benchmark BMI's independent retail industry forecasts for United Arab Emirates to test other views - a key input for successful budgeting and strategic business planning in the Emirati retail market.
* Target business opportunities and risks in United Arab Emirates through our reviews of latest industry trends regulatory changes and major deals projects and investments.
Coverage
BMI Industry View
Summary of BMI’s key forecasts and industry analysis plus a discussion of major industry developments and a snapshot of key short-term demand-driving macroeconomic movements.
Industry SWOT Analysis
Analysis of the major Strengths Weaknesses Opportunities and Threats within the retail sector and within the broader political economic and business environment.
BMI Industry Forecasts
There are four separate 5-year forecast modules in the retail reports. These are:
* Headline Retail Forecast: Total household spending (local currency and USDbn % growth % GDP per capita per household) spending by retail sector (food & non-alcoholic drink alcoholic drink clothing & footwear housing & utilities furnishings & home health transport recreation education restaurants & hotels personal care & insurance (local currency and USDbn % growth % GDP % of total spending)
* Retail Sector Forecast: Breakdown of Food Non Alcoholic Drink Alcohol Tobacco Clothing Footwear Household Goods Furnishings Appliances Glass and Tablewear Household Textiles Consumer Electronics Garden Toys and Pets Home and Garden tools Personal Care Personal Effects Spending (USDbn % Growth)
* Household Income and Numbers Forecast: Number of Households (‘000 % growth); gross income per household and per capita; net income per household and per capita; tax and social contributions per capita; breakdown of household incomes – USD5000+ USD10000+ USD50000+ (‘000 % of total); labour force employment and unemployment (‘000 % change)
* Demographic Forecast: Total population; Babies 0-12 months; Young Children 0-4yrs; Children 5-9yrs; Young Teens and Older Children 10-14yrs; Older Teens 15-19yrs; Adults 21yrs +; Young Adults 21-29yrs; Middle Aged 40-64yrs (‘000 % growth male female); Urban Population (‘000 % population); Rural Population (‘000 % population).
BMI’s Retail Risk Reward Index
BMI’s Risk Reward Indices provide investors looking for opportunities in the region with a clear country comparative assessment of a market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry economic and demographic data points to provide indices of highest to lowest appeal to investors with each position explained.
Market Overview
Provides a detailed country-specific analysis of the key trends and developments in the retail sector as a whole as well as an assessment of the main drivers affecting the major retail segments including mass grocery retail fashion pharmacies consumer electronics home improvement and personal care. The market overview also considers the most effective store formats in a given country and the impact of these factors on the main international and domestic players’ development strategies.
Competitive Landscape
This provides a brief overview of the key players in each subsection of the retail sector including MGR Fashion Home Improvement Consumer Electronics Pharmacies and Department Store chains.
Sources
About Fast Market Research
Fast Market Research is a leading distributor of market research and business information. Representing the world's top research publishers and analysts we provide quick and easy access to the best competitive intelligence available. Our unbiased expert staff is always available to help you find the right research to fit your requirements and your budget.
For more information about these or related research reports please visit our website at or call us at 1.800.844.8156 (1.413.485.7001 Int'l)
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.