The UAE has been ranked eighth most attractive retail market globally according to the retail operations index released by the built asset consultancy Arcadis. The index ranked 50 international markets based on key factors that retailers look for when choosing to ‘make an entry into a market’. The UAE was ranked first in the Middle East, with retailers benefitting from the strong infrastructure and ease of operations.
In this article, we will see just why UAE has become the latest pin-up boy for retailers.
UAE’s Strong Infrastructure combined with a business-friendly environment has ensured it quickly climbs the ranks of the retail markets. It has consistently ranked high in combined global rankings released globally and region-wise. The region boasts some of the best malls both in terms of design, structure and the ‘wow’ factor. The investment policies are pro-investor and encourage more retail groups to enter the market. At the same time, with less red-tape and more incentives to invest, the companies and bigger groups are encouraged to invest in the region.
Innovative Policies of the Government has ensured that the companies that enter stay invested and interested in the region. Dubai and the Emirates are known for the interesting campaigns for the different ‘shopping fests’ is just a small case in point. This leads to global brands to enter the market and keep at it since there is a strong government support to ensure that they make profits on the huge investments they make.
Retail Success Depends to a large extent on the interconnected roads and the transit system. The region boasts of some of the best in the region. The quality of transportation, the smooth transition ensured by roadways that are good, the strategic location and physical presence of a store continues to entice and help successful retailers in the UAE. The transportation system, including the metros and roads contribute to a large extent for the region’s success in attracting the biggest names of retail in the world. The smart transportation which links the malls to the metros, and makes it both cheaper and convenient for the shoppers helps too.
The Population Is what makes it happen too! The young expat crowd who come to Dubai and the UAE in search for opportunities as well as the strategic location which makes it the favourite haunt for tourists helps in boosting the rankings up further. The local crowd and the roaming crowd ensure that the shopping never stops in Dubai and the UAE. This further ensures that the line of big names entering and wanting to enter the market keeps on increasing.
Combine that with the economic stability in the region, which also contributes in no small measure to UAE being the go-to retail destination. The current economic spending encourages higher spending and leads to even higher employment in the market, making it extremely attractive for most big names in retail.
This explains the popularity for the region as the favourite retail destination!