DOHA: Qatar has been ranked fourth in the world and as the top GCC country in the Global Retail Development Index (GRDI). Marking its debut into the index, Qatar’s retail market is expected to grow as a result of infrastructure projects and a growing population, according to a report released by A T Kearney. Overall, Qatar saw total retail sales reach as high as $12.4bn and 9.7 percent annual growth over the past four years.
Bolstering Qatar’s global position is its projected growth in retail space, which will reach one million square meters in the next three years. The proliferation of malls in the country, paired with the Doha Shopping Festival, will also enhance the retail landscape. It is likely a variety of retail outlets make their way to the country, ranging from hypermarkets to luxury goods.
Shamail Siddiqi, Principal of the Consumer and Retail Practice, A T Kearney Middle East, said: “Despite the record drop in oil prices, retail sales growth is expected to continue. Indeed, the retail space pipeline remains strong, with several major projects under way in Qatar as well as the UAE and Oman. Many retailers see Qatar as the natural next step for increasing their regional footprint. The country’s staggering GDP per capita, along with the ambitious infrastructure projects, has made it a market retailers cannot afford to ignore.”
The 2015 GRDI includes a special feature on the prospects for luxury goods in developing markets. Martin Fabel, Partner and Global Head of the Strategy Practice, commented: “Our work with consumer industries and retail clients shows retail sales growth is expected to continue. Luxury remains a relatively bright spot in emerging markets, as the wealthy have proven less vulnerable to economic woes than the general population.”
The feature includes an analysis of the 15 leading luxury brands and their presence in the GRDI’s top 30 countries. The analysis shows emerging markets fall into three tiers of luxury development, with different implications for brands looking to enter or expand in these markets. Qatar currently hosts 13 of the top 15 brands, indicating a strong local demand for luxury brands.
The Peninsula
