São Paulo – Retail in the Gulf Cooperation Council (GCC) member countries could be up 25% by 2021; by then, turnover should reach USD 313.2 billion. The information is from a study by Alpen Capital and was made public on the website of Dubai’s Arabian Business magazine. GCC comprises Saudi Arabia, the United Arab Emirates, Bahrain, Kuwait, Oman and Qatar.
Sector growth will be driven by economic and population growth, as well as tourism. According to the study, expansion will be slower this year and then pick up steam in 2018.
“The sector is expected to recover in 2018 and grow steadily through 2021 driven by the anticipated rise in population, international tourist arrivals and per capita income,” the study reads.
The consulting firm expects total retail area in GCC countries to widen by over 6.2 million square meters in the next five years, to 18.6 million sqm of gross leasable area.
Online sales across the region are seen reaching USD 41.5 billion by 2020, according to the study by Alpen Capital. The UAE will lead online retail in the Gulf at 53%, trailed by Saudi Arabia at 14%, Oman at 12% and Qatar at 10%.
Tourist arrivals will keep increasing in the Gulf, on the back of tourism infrastructure growth and the hosting of major events such as Expo 2020 in Dubai and the 2022 FIFA World Cup in Qatar.
*Translated by Gabriel Pomerancblum