UAE, Ranked 5th At World’s Most Attractive Retail Destination

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A.T. Kearney recently released the result of 2013 Global Retail Development Index (GRDI)UAE, Ranked 5th At World’s Most Attractive Retail Destination whereas 30 developing countries ranked according to its retail development.

The United Arab Emirates ranked 5 as World’s Most Attractive Retail Destination on this study.

According to AT Kearney’s website, the UAE (5th) accelerated two spots, as its high retail sales and per-capita consumer spending; rising consumer confidence, slight population increase, and position as a regional tourism hub make it an attractive destination for retailers.

Malls are investing heavily in increasing their area and improving their mix of tenants. Dubai’s gross leasable area (GLA) will increase 14 percent by 2015, and in Abu Dhabi, where mall space is scarce (the vacancy rate is 2 percent), GLA will rise 48 percent.

Demand continues to grow in the tourism capital of UAE, even as it is fully saturated with global brands. European concepts are fully represented now and no longer represent a way for malls to stand out. Demand is now shifting to American concepts and food and beverage.

Abu Dhabi on the other hand, famous cultural names such as the Louvre, Guggenheim, and Sorbonne are planning to open branches, tourists and foreign residents are driving retail growth. Major investments in infrastructure, universities, arts, and cultural events are taking place, and consumers are demonstrating an appetite for luxury concepts.

GRDI study scores were based on the following criteria’s:

  • Country and business risk (25 percent)
  • Country risk (80 percent)
  • Business risk (20 percent)
  • Market attractiveness (25 percent)
  • Retail sales per capita (40 percent)
  • Population (20 percent)
  • Urban population (20 percent)
  • Business efficiency (20 percent)
  • Market saturation (25 percent)
  • Share of modern retailing (30 percent)
  • Number of international retailers (30 percent)
  • Modern retail sales area per urban inhabitant (20 percent)
  • Market share of leading retailers (20 percent)
  • Time pressure (25 percent)

Here are the 30 countries under 2013 GRDI study, written according to their ranks:

  1. Brazil                                                 16. Saudi Arabia
  2. Chile                                                  17. Oman
  3. Uruguay                                             18. Colombia
  4. China                                                 19. Indonesia
  5. United Arab Emirates                          20. Jordan
  6. Turkey                                               21. Mexico
  7. Mongolia                                            22. Panama
  8. Georgia                                              23. Russia
  9. Kuwait                                               24. Lebanon
  10. Armenia                                             25. Botswana
  11. Kazakhstan                                        26. Namibia
  12. Peru                                                   27. Morocco
  13. Malaysia                                             28. Macedonia
  14. India                                                  29. Azerbaijan
  15. Sri Lanka                                            30. Albania