JEDDAH: The Middle East retail industry will grow at a CAGR of around 13 percent during 2009-2013 to reach over $682 billion by 2013, Companies & Markets said Monday in its Middle East Retail Sector Forecast to 2013. The report identified Saudi Arabia and the UAE as the most potential and dynamic retail markets in the region. These two markets have been sustaining their dominance at the retail landscape for more than a decade and will continue to do so in coming years. Presence of large expatriate population and majority of region's retail investment in these countries have helped to maintain the growth momentum. The Middle East has emerged as a key market for retailers across the world. Retail has been one of the fastest growing industries in the region for the past few years. Favorable government policy frameworks and active participation of private sector have facilitated the region's retail industry to become one of the world's most desirable retail environments in terms of investments and revenue generation. Further, changing market dynamics, rapid economic development, balancing crude oil prices, rising purchasing power, and strong consumer confidence are strengthening the region's retail industry. The retail culture has evolved from traditional outlets to large shopping malls, hypermarkets, supermarkets, and organized chains. Changing consumer demographics in countries like, Saudi Arabia and the UAE, presence of large expatriate population, improving purchasing power, and abundance of petro-dollar have attracted premium and luxury brands to the region. In 2009, the Middle East retail industry was valued at over $425 billion. However, all the countries did not react in the same way to economic downturn. While some economies like Kuwait slumped; others, such as Qatar thrived due to high demand for its gas. Retail has been one of the fastest growing industries in the region for the past few years. Favorable government policy frameworks and active participation of private sector have facilitated the region's retail industry to become one of the world's most desirable retail environments in terms of investments and revenue generation. Further, changing market dynamics, rapid economic development, balancing crude oil prices, rising purchasing power, and strong consumer confidence are strengthening the region's retail industry.
