Consumer-led Growth Witnessed in UAE Retail Industry: Ken Research
Ken Research announced its latest publication on “The Future of Retailing in the UAE to 2020; Comprehensive data overview of the market, with retail sales value and forecasts to 2020” which elucidates details of market and consumer trends of UAE’s retail industry. The report provides snapshot of major retail sales and distribution channels which are gaining popularity in recent years. It provides comprehensive overview of qualitative and quantitative acumens which generated remarkable development in UAE’s retail industry. It also gives detailed information about major products and segments in which growth is anticipated in forecast period. Further, details about latest market players is also highlighted in the report.
Overview of UAE’s retail industry
Considering Arabian economies, UAE economy has witnessed spectacular growth in past few decades. This growth is majorly attributed to oil sector of the economy which not only contributes to national income but is also an important source of foreign direct investment (FDI). Construction and tourism sector has also contributed to significant improvements in economy. And in last three decades, retail sector has observed spectacular growth and development.
The report provides information about twenty six groups and nine segment of the industry. Food and grocery sector received maximum share of the industry. E-commerce has also boosted sales of the sector. Further, many economic policies of government to promote non-oil sector is facilitating growth in the sector.
Key driving factors
This amazing growth in the sector is due to many key macroeconomic factors which are listed below:
- Massive economic growth
Outstanding economic growth of the economies of UAE after 1980’s has led to significant rise of incomes and standard of living of people which is rising consumer demand for retail products.
- Population boom
Population of UAE is rising significantly which is rising consumption demand in the economy. This is leading to expansion in production to fulfill massive consumer demand.
UAE’s economies like Dubai and Abu Dhabi are major tourist destinations and this tourism is providing major boost to the industry. Further, Dubai is hosting world trade expo in 2020 which is expected to uplift tourism industry laden to expansion of retail industry.
- Economic diversification
Countries of UAE are heavily dependent upon oil producing sector. Now government is designing policies to promote growth in non-oil producing sectors like retail industry. This is not only increasing public investment in the industry but is also increasing FDI in the industry.
Future of the industry
Looking at the current consumer and market trends, enormous growth is expected in the retail industry of UAE. New channels of sales and distribution are introduced like hypermarkets, supermarkets, specialized retailers, etc. which will further improve sales in the sector. E-commerce is contributing in a spectacular manner to heighten sales further in the industry. But however few challenges like falling oil prices, excessive regulations in the economy, dearth of adequate investment in the industry may act as a constraint to growth of the industry.
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Ankur Gupta, Head Marketing & Communications