Retail sales in GCC will grow at a compound annual growth rate (CAGR) of 8.3 per cent between 2010 and 2015, reaching $240.3 billion by the end of the period, said a report.

Growing per capita GDP and disposable income, expanding population base and consistent inflow of tourists will push the sector forward, added the GCC Retail Industry report.

Retail sales of supermarkets and hypermarkets are estimated to expand at a CAGR of 10.7 per cent between 2010 and 2015, outpacing the broader retail industry.

The retail industry has been one of the fastest growing sectors in the Middle East for the last few years.

It is the second largest sector in the GCC, considered the most preferred means of promoting diversification and sustained economic development in the region.

The industry is dominated by a number of privately-held companies, whose drive and innovation has transformed the retail landscape of the region, according to a report by Alpen Capital.

These companies have shown resilience in the face of the economic crisis and now face a period of healthy growth.

While the financial crisis slowed the pace of growth, the retail sector continues its uptrend, supported by fundamental drivers, including growing affluence and disposable income, rise in tourism, a large expatriate population, favourable demographic factors and large-scale infrastructure development. – TradeArabia News Service