The retail industry in the Middle East today is facing the threat of disruption due to a plethora of technological innovations. With the rise of e-commerce and omnichannels, the introduction of Aramex’s Shop&Ship, and the increased focus on personalised customer experiences that meet the changing consumer expectations and behaviour, retailers must now compete at every touchpoint.
Globally, the retail market in the GCC is in a unique position as it continues to grow as new state-of-the-art malls and destinations open. While the US has around 1,100 malls operating today, a quarter of them are at risk of closing over the next few years, according to analysis from Credit Suisse. In comparison, the UAE alone is expected to welcome around 1,184,000 sqm of new retail space by the end of 2018. Recent announcements have been made about Nakheel’s $1.2bn mall on the Palm Jumeriah being 85 percent complete, while the world’s first nature-inspired mall, Cityland Mall, has confirmed its launch date for next year. Consequently, the Dubai Chamber of Commerce has predicted that the UAE retail sector is projected to expand at a CAGR of 4.9 percent and reach $71bn by 2021.
