News

Arab cities are among top retail hubs

06 de junho de 2016

São Paulo – Five Arab cities are among the world’s 15 biggest retail hubs, according to the Destination Retail report from multinational real estate consulting firm Jones Lang LaSalle (JLL). The information was released last Sunday (5) by Emirates News Agency (WAM).

Dubai, in the United Arab Emirates, ranks fourth on the global ranking and first in the Middle East and North Africa. Kuwait City is in the 9th position; Abu Dhabi, also in the UAE, ranks 11th; and Jeddah and Riyadh, both in Saudi Arabia, are tied in 12th place.

WAM said the industry is strengthening across the Middle East with the arrival of more and more international retail chains. Dubai stands out as a traditional shopping destination.

“Retail will continue to be a key pillar of the Dubai economy, and this report shows its strategy of attracting leading international retailers is working,” WAM quoted JLL’s head of retail for the Middle East and North Africa, Andrew Williamson, as saying.

The report also says the Gulf Cooperation Council (GCC) member countries have a vast supply of affordable commercial space and that the activity of international retailers is franchise-based, thereby reducing the risks of entering the market. The GCC is composed of Saudi Arabia, the UAE, Bahrain, Qatar, Kuwait and Oman.

WAM adds that the Middle East retail market is not as mature as others, and therefore international brands do not face strong competition from domestic counterparts. According to the report, pent-up shopping demand across the region has spurred some of the highest sales volumes for retailers.

JLL’s ranking is topped by London, trailed by Hong Kong and Paris. New York ranks fifth, after Dubai. Shanghai is 6th, Singapore is 7th, and Beijing is 8th. Numbers 9 and 10 are Kuwait City and Tokyo.

*Translated by Gabriel Pomerancblum