Dubai retains second position for international retailer representation for fourth consecutive year
UAE. Dubai retained its position as the second most important international shopping destination globally for the fourth consecutive year, closely behind London, which also retained its number one position, according to the 2015 edition of “How Global is the Business of Retail?” by leading global property advisor CBRE.
Dubai has a presence of 55.7% of international retailers followed by Shanghai with 53.4 per cent.
Whilst New York and Singapore make up the rest of the top five international cities for retail representation with 46.3 and 46.0% respectively. During the course of 2014, Dubai attracted 45 new international brands, with high profile retailers including Hollister, Cavalli Caffe and McQ Alexander McQueen opening outlets in the emirate.
Commenting on the findings, Nick Maclean, Managing Director, CBRE Middle East, said, “Dubai’s global air connectivity and its growing stature as a hub for trade between the East and West has clearly given an added impetus to the retail sector. Dubai continues to remain the clear destination of choice for the majority of the brands looking to enter the region for the first time, frequently using the emirate as a stepping stone to wider regional expansion programs.”
Retailer globalisation remained a key theme with half of the 164 cities surveyed attracting at least five new retailers. Markedly, Abu Dhabi featured prominently on the list of target cities with 55 new brands, ranking the emirate in third place for new retail entrants during 2014. Tokyo took the coveted top spot with 63 new retailers entering the market followed by Singapore.
“Whilst Dubai has maintained its position for overall retail representation in 2014, the increased number of new retailer brands entering Abu Dhabi has been driven in part by a significant increase in supply in the capital amidst the opening of a number of new malls, most notably Yas Mall which opened in November 2014,” added Maclean.
H.E. Hamad Buamim, President & CEO, Dubai Chamber of Commerce & Industry, said: “Dubai Chamber welcomes news that the city has retained its position as the second most important international shopping destination globally for the fourth consecutive year. Dubai’s retail sector is vibrant and continues to be driven by strong economic growth, increased consumer spending and tourist arrivals which hit a record high of 13.2 million last year.
"Dubai provides a wide range of opportunities for foreign retailers and brands, whether that is individual stores or franchise options. The quality of available retail space is an added incentive for global retailers looking for expansion and key projects, such as Mall of the World promise a healthy future outlook. Dubai Chamber supports the retail sector through various initiatives and activities and as the voice of the business community we will continue to facilitate growth and developments in this important sector.”
Mid-Range fashion retailers remained the most active sector globally and focused on targeting the European market. Whilst Luxury and Business fashion retailers continue to target the Americas and Asia Pacific region with 26% of expansion into the Americas and 24% in Asia, coming from this sector. Luxury retailers contributed more than one fifth of new retail entrants to Asia Pacific last year.
Ahmed Galal Ismail, Majid Al Futtaim Ventures CEO said: “Dubai’s economic growth remains strong and it retains its position as a leading leisure and shopping destination in the world. The UAE retail sector will continue to see strong growth in 2015, driven by robust inbound tourist numbers and demand for new brands in the region, with almost all retailers using the UAE as a hub for their entry into the GCC. In addition, the UAE’s free-market economy, which makes it easy to do business in the country, will be a key driver of this growth.”
He added: “At Majid Al Futtaim, we have witnessed high growth last year, and with our regional expansion plans, we remain committed to growing this further. Majid Al Futtaim offers an experience that goes well beyond shopping – our malls are lifestyle destinations with shopping, dining and leisure activities that truly deliver great moments for our guests every day of the week. We are passionate about innovation, and we want to constantly surprise and delight our visitors by adding new and exciting experiences, whilst continuing to contribute to the success of the regional retail sector.”
The traditional retail triumvirate of London, Paris and New York continue to be challenged and in some cases overtaken by cities from Asia Pacific and the Middle East. This trend is likely to continue and there will be a day when we see a new number one atop the overall retail penetration rankings.
Photo Caption (L-R): Nick Maclean, Managing Director, CBRE Middle East, H.E. Hamad Buamim, President & CEO, Dubai Chamber of Commerce & Industry and Ms Fielder
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 2014 revenue). The Company has more than 52,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 370 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 atwww.cbre.ae
About Dubai Chamber of Commerce & Industry
Established in 1965, Dubai Chamber of Commerce & Industry is celebrating its milestone anniversary of 50 years empowering vision in Dubai’s business community. A non-profit public entity, Dubai Chamber supports Dubai’s vision as a global player by empowering businesses, providing innovative value added services and access to influential networks. Its 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.
For more information visit: www.dubaichamber.com
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 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 13 international markets, employing over 27,000 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. The shopping malls portfolio includes Mall of the Emirates, City Centre malls, and also four community malls which are in joint venture with the Government of Sharjah. It holds exclusive rights to the Carrefour franchise in 38 markets across Middle East, Africa and Central Asia, operating a portfolio of over 60 hypermarkets and over 70 supermarkets in 13 countries. Majid Al Futtaim operates 129 VOX Cinema screens and 18 Magic Planet family entertainment centres across the region, in addition to iconic leisure and entertainment facilities such as Ski Dubai and iFly Dubai, among others.
Majid Al Futtaim launched the first LEGO-certified store in the Middle East and 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 Veolia, a global leader in optimised environment resource management, and has expanded into food and beverage in partnership with Gourmet Gulf.
For more information, please visit www.majidalfuttaim.com
Disclaimer: All facts and figures in this release are accurate at the time of issuance.
