The Middle East is currently in the midst of the biggest increase in floor space ever witnessed in retail history. The commitment of massive capital investment throughout the region is transforming the shopping experience by completely redefining the actual retail environment.
Glimpses of the future of Middle East retailing can be seen in the innovative form of the Mall of the Emirates, the elegant Bur Juman Centre and the fresh approach of the Ibn Battuta Mall in Dubai, all of these highly creative developments taking retailing to entirely new heights. Over the next five years, at least three more huge shopping destinations will be launched in Dubai alone, a pattern that is being repeated across the Emirates and every economy in the Gulf.
“The growth of the sector, linked to the influx of international big names retailers, means that the Middle East retail sector is faced with incredibly high expectations,” said Paula Al Chami, Project Manager, dmg world media Dubai Ltd., organisers of the recently announced In Retail Exhibition. “We already had a successful retail element within our long-established Index exhibition, but following discussions with exhibitors and key members of the Middle East retail sector, decided that the industry needed a dedicated show that was specifically designed to enhance the region’s retailing capabilities.”
Making its debut from 4-6 June 2006 at Dubai’s International Exhibition Centre, In Retail will be a total one-stop retail solutions event, featuring a comprehensive range of products, services and technologies that will shape the future of retailing in the Gulf, Middle East and North Africa.
The GDP of the GCC countries is $491 billion, with over 9% accounted for by the retail trade. With many retailers experiencing slow growth in their traditional markets, the Middle East represents a highly attractive opportunity. For example, by 2008 retail spending in Saudi Arabia is expected to increase by as much as 28%.
There are many factors that will determine the success of retailers entering the GCC region. Not only are there diverse cultural differences, but also a completely different population dynamic compared to most of the world’s more established countries. The average age in the GCC is the mid-twenties (39 in the UK), and the average family has 3.5 children compared to 1.6 in the UK.
“Clearly, global retailers have huge opportunities in the Middle East, but to really maximise these opportunities will take more than just skill – it’s essential to build an understanding of the local market and the preferences of shoppers,” said Al Chami. “That’s why, in addition to an all-encompassing product profile that will highlight the very best retailing products and techniques available anywhere in the world, the core of In Retail will be a series of industry expert led seminars – our objective is to create a platform that will make a meaningful contribution to the overall quality of the Middle East’s retailing landscape.”
This determination to create sustainable quality growth within the sector has also been echoed by Phil McArthur, Director of Leasing & Marketing, Dubai Festival City, and the first Middle East based trustee to the International Council of Shopping Centres (ICSC), who delivered the keynote address at the recent 11th annual Middle East Council of Shopping Centres (MECSC) Conference in Dubai, saying that as the industry matures, managers and developers will have to continually raise the bar to stay on top.
By the end of the decade, the amount of gross leasable area in the region is set to double to over 118 million square feet – clearly, this will lead to a sharp increase in competition and developers and managers must be prepared or will be left behind. Therefore, a change in development strategies is needed to keep up with the rapid consumer evolution currently being experienced.
“In Retail has been created to support and enhance the regional retail industry, equipping developers and managers for long term retail success,” concluded Al Chami. “Interest, both from local and international companies that are eager to participate and visitors that are seeking the distinguishing factors that can make their developments stand out from the crowd, has been incredible.”
dmg world media Dubai Ltd, part of the dmg world media group of companies, has a wealth of experience in organising exhibitions to the very highest international standards. Index, The Big 5, The Office Exhibition and The Hotel Show are all leaders in their respective market sectors.
One of the largest exhibition and publishing companies in the world, the dmg world media group of companies produces more than 300 market-leading trade exhibitions, consumer shows and fairs each year. It also publishes 45 related magazines (including “Gulf Interiors”), newspapers, directories and market reports. The company employs over 800 people in its worldwide network of 38 offices in the USA, UK, Canada, Brazil, France, China, Australia, New Zealand and the Middle East. dmg world media is a wholly owned subsidiary of the Daily Mail and General Trust plc (DMGT), one of the largest and most successful media companies in the world.
