'Qatar retail market growth to top Gulf'

(MENAFN - Gulf Times) Qatari retail market is expected to grow at a compound annual growth rate (CAGR) of 9.8% in five years up to 2018, the fastest in the GCC region, a new study has shown.

According to Alpen Capital, the GCC (Gulf Cooperation Council) retail sales are expected to grow at a 7.3% CAGR between 2013 and 2018 to reach 284.5bn.

"While retails sales growth across all the GCC countries is expected to remain positive between 2013 and 2018, the outlook for Qatar is the most optimistic during the period," Alpen Capital said in its 'GCC retail industry report'.

"While Qatar's retail market is expected to register a CAGR of 9.8%, the other five GCC countries are seen registering an annual average growth rate of 6%-7% during the period," Alpen said.

Based on the moderate growth scenario for Alpen's supply-side estimates, occupied modern retail sales area in the GCC is projected to reach 6.6mn sq m in 2018, while expected growth in the supply of modern retail sales area over the forecast period is partially lower than the demand-side CAGR estimate for retail sales. The supply of new modern retail sales area is expected to adequately meet the increasing demand for retail space over the next five years.

The population base of the GCC region is one of the fastest growing, with 41% of its population in the age group between 15 and 34, having a strong preference towards international brands. The region also has one of the most attractive corporate tax regimes, which works as an "attraction" to retailers.

Over the years, the region has emerged as an international tourist hub, enjoying popularity among leisure travellers, international shoppers and pilgrims. A high influx of tourists presents an environment conducive for the growth of the retail industry.

The region's economy has emerged as one of the richest and fastest growing in the world, largely on the back of its proven crude oil reserves. The region is comparable to some of the strongest developed economies of the world, supported by its cash-rich governments, healthy credit ratings and strong currency reserves.

Dubai's successful bid to host the World Expo 2020 paves the way for further growth of its non-oil sector, lending momentum to the construction, tourism and hospitality sectors.

Qatar's non-oil sector increased by more than 10% in 2014, stimulated by its major infrastructure projects such as the Doha Metro and the Hamad International Airport. Some countries in the region are, however, yet to reduce their dependence on the hydrocarbon sector to a meaningful degree.

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'Qatar retail market growth to top Gulf'