UAE, Kuwait and Saudi Arabia featured among the top five most attractive apparel retail hotspots, in addition to China and Russia, said a report.

China ranked as the most attractive emerging market for apparel retailers, driven by the country’s large population and the growing disposable income of the middle class, added the latest Retail Apparel Index, a study by global management consulting firm A T Kearney.

China was followed in the ranking by two Middle East countries, UAE and Kuwait, then by Russia and Saudi Arabia.

“The high ranking of GCC countries highlights continuing opportunities for regional and international fashion retailers to further grow in these markets,” said Dan Starta, partner and managing director, A T Kearney Middle East.

“It is important to understand the current concentration and maturity of fashion retail at a granular level, to best take advantage of the growing demand.”

“The apparel market in the region continues to evolve as we see a growth trend in new luxury retailers entering the market and an expanding base of more mainstream international and regional players,” he added.

The UAE holds the second position in the 2011 Apparel Index, driven by a population with a high disposable income and immense fashion consciousness.

The expatriate populace and tourism in particular are driving forces of consumption in this market. Additionally, the UAE is a regional commerce center in the Middle East and is a preferred market for entering the region as well as testing new products and retail formats, the report said.

Key factors driving retail growth in the number three ranked Kuwait are a favourable long-term economic outlook, a sophisticated consumer base with high levels of disposable income and fashion awareness, more women entering the workforce, and a significant expansion in retail real estate.

The gross leasable retail space in Kuwait has expanded from 345,000 sq m in 2006 to 1.15 million sq m in 2010.

Saudi Arabia, ranked fifth, has a population of 29.2 million, and is clearly a retail hot spot worth watching, the report said.

Consumer confidence in Saudi Arabia is high and consumer spending is increasing rapidly, with most disposable income spent on food, apparel, health and beauty. Saudi Arabia’s young population (two-thirds under the age of 29), with its high discretionary income are considered key targets by the fashion industry.

“The three GCC countries also feature in the Global Retail Development Index amongst the top 10 retail destinations,” Strata said.

“The findings of both surveys are therefore extremely interesting for retailers and mall developers, to ensure they extend the best offerings internationally, across the GCC and definitely in the three very attractive Middle Eastern markets of UAE, KSA and Kuwait,” he concluded.

Apparel retail in China, with its compound annual growth rate of more than 20 per cent in recent years, has grown at a rapid pace, and this trend is expected to continue for the next five years, according to the report.

The remaining five markets in the top ten include India, Brazil, Turkey, Vietnam and Chile. – TradeArabia News Service