Middle East has emerged as a key market for retailers across the world. The region is witnessing rapid transformation in retail industry, driven by changing market dynamics and rapid economic transformation. Over a period of time, the retail culture across the Middle East has evolved from traditional outlets to large shopping malls, hypermarkets, supermarkets and organized chains. The changing consumer demographics in countries like Saudi Arabia and UAE, presence of large expatriate population, rising purchasing power and abundance of petro dollar has attracted various premium and luxury brands to the region.

In 2003, the Middle East retail industry was valued at around US$ 200 Billion and by the end of 2008, this value swelled more than US$ 400 Billion. We anticipate that there will be a marginal effect of the 2008 financial crisis on the retail market in the Middle East, and it will see a growth of around 14% during 2009-2013. Strong economic fundamentals and well protected banking system will shield the region from the aftermath of the financial crisis. Although the declining oil prices may be a cause for concern for most of the oil exporting countries, it will be short-lived as improving economic conditions and increasing fuel consumption will drive the oil prices upwards.

Our report “Middle East Retail Sector Forecast to 2013” identifies Saudi Arabia and UAE as the most potential and dynamic retail market across the region. These two markets have continued dominating the retail industry landscape for more than a decade and will continue to do the same in the coming years. The presence of large expatriate population and majority of the region’s retail investment in these countries have helped to maintain the growth momentum.

The report is an outcome of an extensive research and rational analysis on the retail sector of the Middle East. Middle Eastern countries examined in this report include the GCC nations such as United Arab Emirates (UAE), Saudi Arabia, Kuwait, and Oman besides Turkey, Egypt, Jordan, Israel, and Iran.

The report will help vendors, customers, consultants and industry analysts to get in depth understanding of the past and current scenario of the retail industry of the region. The report also identifies future growth areas and has been derived by interacting with various industry veterans and developers. The information analyzed in the report is based on data available in research papers, journals and industry associations. The forecasts made in the report are based on the information available and our proprietary statistical models.

1. Analyst View

2. Research Methodology

3. Industry Snapshot

4. Market Attractions
4.1 Economic Landscape
4.2 Dubai Duty Free
4.3 Expatriate Population
4.4 Tourist Arrivals
4.5 Retail Real Estate
4.6 Franchising
4.7 Luxury Goods Retailing

5. Middle East Retail Market Outlook to 2013
5.1 Market Overview
5.1.1 Saudi Arabia
5.1.2 Turkey
5.1.3 Egypt
5.1.4 Iran
5.1.5 Israel
5.1.6 UAE
5.1.7 Jordan
5.1.8 Oman
5.1.9 Kuwait

6. Growth Hurdles
6.1 Regional, Ethical and Religious Issues
6.2 Cultural Differences
6.3 Sustaining Competitive Edge

7. Key Players
7.1 Carrefour
7.2 EMKE Group
7.3 Savola Group Company
7.4 Blue Square Israel Ltd.
7.5 Shufersal Ltd.
7.6 Sultan Center

List of Figures:

Figure 4-1: Dubai Duty Free Retail Sales (Million US$), 2006-2008
Figure 4-2: GCC - Share of National and Foreign Population by Country (2006)
Figure 4-3: Middle East - Tourist Arrivals (Million), 2008 & 2020
Figure 4-4: GCC - Gross Leasable Area (Million m2), 2008 & 2011
Figure 4-5: Middle East - Forecast for Franchising Industry (Billion US$), 2009-2013
Figure 4-6: Middle East - Forecast for Luxury Goods Market (Billion US$), 2009-2013
Figure 5-1: Middle East - Retail Market (Billion US$), 2008-2013
Figure 5-2: Saudi Arabia - Retail Market (Billion US$), 2004-2008
Figure 5-3: Saudi Arabia - Share in Gross Leasable Area of GCC (2008)
Figure 5-4: Saudi Arabia - Forecast for Retail Market (Billion US$), 2009-2013
Figure 5-5: Turkey - Retail Market (Billion US$), 2004-2008
Figure 5-6: Turkey - Forecast for Retail Market (Billion US$), 2009-2013
Figure 5-7: Egypt - Retail Market (Billion US$), 2004-2008
Figure 5-8: Egypt - Forecast for Retail Market (Billion US$), 2009-2013
Figure 5-9: Iran - Retail Market (Billion US$), 2004-2008
Figure 5-10: Iran - Forecast for Retail Market (Billion US$), 2009-2013
Figure 5-11: Israel - Retail Market (Billion US$), 2004-2008
Figure 5-12: Israel - Forecast for Retail Market (Billion US$), 2009-2013
Figure 5-13: UAE - Retail Market (Billion US$), 2008-2011
Figure 5-14: Dubai - Share of Organized Retail in GCC Retail Market (2006)
Figure 5-15: Dubai - Gross Leasable Area (Million m2), 2008 & 2010
Figure 5-16: Dubai - Number of Malls (2005 & 2008)
Figure 5-17: Dubai - Share of Tourism Industry in Retail Sales (2006 & 2010)
Figure 5-18: Jordan - Retail Market (Million Dinar), 2004-2008
Figure 5-19: Jordan - Forecast for Retail Market (Million Dinar), 2009-2013
Figure 5-20: Oman - Retail Market (Million Rial), 2004-2008
Figure 5-21: Oman - Forecast for Retail Market (Million Rial), 2009-2013
Figure 5-22: Kuwait - Share of Retail Market by Format (2006)
Figure 5-23: Kuwait - Gross Leasable Area (Million m2), 2006 & 2010

List of Tables:

Table 4-1: Middle East - Real GDP Growth by Country (%), 2006-2008
Table 4-2: GCC - Future Mall Supply
Table 5-1: Middle East - Retail Outlets by Format and Location
Table 5-2: Saudi Arabia - Overview of Retail Chains
Table 5-3: Saudi Arabia - Opportunities and Challenges for Retail Market
Table 5-4: Saudi Arabia - Key Consumer Product Sales (Million US$), 2007-2013
Table 5-5: Turkey - Number of Retail Outlets by Format (2004-2008)
Table 5-6: Turkey - Key Consumer Product Sales (Million US$), 2007-2013
Table 5-7: Egypt - Number of Food Outlets by Format (2005-2008)
Table 5-8: Egypt - Key Consumer Product Sales (Million US$), 2007-2013
Table 5-9: Iran - Forecast for Key Consumer Product Sales (Million US$), 2009-2013
Table 5-10: Israel - Key Consumer Product Sales (Million US$), 2007-2013
Table 5-11: UAE - Number of Retail Outlets by Format (2003 & 2006)
Table 5-12: UAE - Overview of Supermarket Groups
Table 5-13: UAE - Opportunities and Challenges for Retail Market