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UAE named ME's most attractive market for retailers

DUBAI, July 15, 2015

Retailers in the UAE experience some of the best conditions in the world in which to operate in, benefitting from a strong quality of infrastructure and a robust economic environment, according to Aracadis, a leading global natural and built asset design and consultancy firm.

In its ‘Retail Operation Index,’ UAE was ranked eighth place in the overall rankings and first place in the Middle East, while quality of transportation and ease of getting-up-and-running is holding many other countries in the region back.

The index ranked 50 international markets according to the five key factors that retailers look to when choosing where to locate their stores.

It included infrastructure quality, consumer demand and ease of establishing a business in the first instance.

Based on the findings, much of the UAE retail is driven by the tourist industry that further boomed last year and a high calibre infrastructure in the country.

Christopher Seymour, head of Middle East markets at Arcadis, said: “The strategic location and physical presence of a store will continue to help successful retailers in the UAE make the greatest use of their store portfolios and brand marketing to attract customers.

“The quality of transportation such as roads and metros is a key factor contributing to a retailer’s success as the growing young population and increased number of expats and tourists make the decision to shop based on their accessibility from direct metro links to shopping malls.”

In the UAE, a healthy performance has been forecast and consumer confidence will be boosted as a result of economic stability, which will in turn lead to more spending, higher employment and increased numbers of expats and tourists, according to the index.

Furthermore, in environments such as these, retailers are seeing enhancements in prevalence of foreign ownership, trade freedom and logistics performance across the UAE market, creating a more stable base for operations, it said.

“For retailers with international aspirations, weighing up where, how and when to expand into a new region, country or city is critical if they are to stay ahead of the competition and meet their business objectives. Retailers entering or optimising portfolios in the UAE need to be aware of the demographics and market demands and tailor their portfolios accordingly,” said Seymour.

“If a business is going to operate effectively and potentially flourish, it is vital that retailers do their homework. They need to consider data and insight on their prospective markets and consider the varying factors that can impact portfolio success. For instance, a market that is expected to see strong economic growth and is ramping up on infrastructure investment has potential to improve its overall rankings in the upcoming years,” he said.

Meanwhile, Qatar and Saudi Arabia were ranked in the second quartile, reflective of the lower ease of doing business rating and comparably less developed infrastructure.

This is largely due to challenges associated with the current infrastructure programmes taking place throughout the cities, as well as restrictions in regulations impacting those operating within the country. -TradeArabia News Service




Tags: UAE | Middle East | top | retailer | arcadis |

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