UAE. 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.”
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.
About the survey
CBRE’s annual survey, now in its seventh year, maps the global footprint of 334 of the world’s leading retailers across more than 189 cities, tracking cross-border retailer movements. It also looks at the markets retailers have targeted in 2013 and provides a definitive benchmark against which to measure future changes in the global retail environment through a global ranking of countries and cities which have been most successful in attracting leading international retailers.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2013 revenue). The Company has approximately 44,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through approximately 350 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting.
Please visit our website at www.cbre.ae
Dubai Chamber of Commerce & Industry
Established in 1965, the Dubai Chamber of Commerce & Industry is a non-profit public entity, whose mission is to represent, support and protect the interests of the business community in Dubai by creating a favourable business environment, supporting the development of business, and by promoting Dubai as an international business hub.
About Majid Al Futtaim
Founded in 1992, Majid Al Futtaim is the leading shopping mall, retail and leisure pioneer across the Middle East and North Africa (MENA).
A remarkable business success story, Majid Al Futtaim started from one man’s vision to transform the face of shopping, entertainment and leisure, and to create great moments for everyone, every day. It has since grown into one of the United Arab Emirates’ most respected and successful businesses spanning 12 international markets, employing over 26,000 people, and achieving the highest credit rating (BBB) among privately-held corporates in the Middle East.
Majid Al Futtaim owns and operates 17 shopping malls, 11 hotels and three mixed-use communities in MENA, with further developments underway in the region. This includes Mall of the Emirates, City Centre malls, and also 4 community malls which are in joint venture with the Government of Sharjah. It holds exclusive rights to the Carrefour franchise in 19 markets across MENA and Central Asia, operating a portfolio of over 50 hypermarkets and over 50 supermarkets in 12 countries.
Majid Al Futtaim operates 92 VOX Cinemas screens and 17 Magic Planets across the region in addition to iconic leisure and entertainment facilities such as Ski Dubai and iFly Dubai among others. Majid Al Futtaim is parent to the consumer finance company issuing 'Najm' credit cards, a fashion retail business representing international brands such as Abercrombie & Fitch, Juicy Couture and Halston Heritage and a healthcare business. In addition, it also has a joint venture operation with Dalkia and has recently expanded into food & beverage in partnership with Gourmet Gulf.