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Dubai: Saudi Arabia is set to account for the majority of retail space in the Gulf Cooperation Council (GCC) region by 2010, according to an industry report.
Ian Albert, regional director at Colliers International, a commercial real estate firm, said, "Saudi Arabia will account for the largest proportion of shopping mall GLA (Gross Leasable Area) by 2010, with almost 7 million square metres expected compared to 3.1 million square metres in Dubai."
He added, "Current unsatisfied demand, purchasing power on the part of the middle and high income segments and a young population exceeding 27 million consumers are the primary factors as far as Saudi Arabia is concerned."
However, Albert said that Dubai represents the highest proportion of retail space per person. "It is important to bear in mind that the dynamics of the two markets are different. Whereas Saudi Arabia's retail sector relies almost exclusively on internal dema-nd for its revenues, over 50 per cent of Dubai's retail revenues are driven by tourism inflows," said Albert. Colliers International said in their quarterly real estate report, that the average spending power in the UAE is $14,400 per household per annum.
Emirati households represent an average spending power of $23,000 per household per annum. 'Western' households have an average of $19,500 per household per annum. 'Other Arabs' represent an average spending power of $13,500 per household per annum and 'Asians' have an average spending power of $10,000 per household per annum.
Dubai is seen globally as a shopping resort, reflected in the acres of shopping space being constructed in the emirate. The report says that over 70 per cent of forthcoming shopping mall supply due to enter the market between now and 2010, is already pre-let.
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