Mall operators throughout the Gulf region are now to delay new mega-projects due to the global pandemic and also low oil prices that upend a retail industry built around huge centres catering to tourists and wealthy locals.
Majid Al Futtaim (MAF), which is the Middle East’s biggest mall-operator, said it had delayed the launch of its fifth and largest centre in Oman, the 145,000sq m Mall of Oman, because retailers did not have the cash at hand to fit out stores.
“In malls under construction, timelines are being revisited. This is a fluid situation, we will see how it goes and adapt,” he added. “It will be the case for the coming 12 months.” – MAF’s chief executive Alain Bejjani said.
MAF, which operates twenty seven malls across the Middle East, said retailers in the Gulf region were not expecting a meaningful recovery for the sector in the next 18-24 months. Foot traffic at its malls in the UAE in May was less than half of what it was a year ago, it added.
