Page 43 - October 2020

A Catalyst for For better or worse, the pandemic is forcing change. More than two-thirds of consumers

in the Middle East and North Africa (69 per cent) believe the way they live their lives will
significantly change in the long term as a result of the Covid-19 virus. Here, RLI takes a
Change look at the market across the Middle East and North Africa and highlights some of the

key projects in the region as developers and their schemes gradually adapt to changing
customer needs and expectations.

he EY Future Consumer Index said that 84 per what the world might be like once the crisis is behind Prior to the effects of the pandemic, the retail sector in highlighted the key elements of success in the retail industry
cent of consumers declared that they have also us. While companies can’t forecast with certainty what the GCC showed strong growth, with fashion and beauty that will keep retailers relevant and competitive in the future.
changed the products they buy with a greater consumers will be doing 18 months from now, they in the region projected to add USD6bn between 2020 and Today, Covid-19 has exacerbated the effects of already
T focus on value for money, and an increased will need to anticipate the consumer requirements and 2023, reaching a market size of USD16bn in 2023. However, existing disruptions from technology and changing consumer
commitment to consume locally made products. values they will be trying to serve.” even before these unprecedented events, retailers have behaviour, which is expected to widely alter the retail market
Many consumer segments in the MENA region are According to the ‘Trends in the GCC Retail Market: The been faced with challenges to their businesses. The shift to landscape and retailers’ strategic positioning. We are also
adopting such values for the first time, with 68 per cent State of Retail Today and Predictions for a Post-Covid-19 e-commerce has impacted the nature of retail dramatically – seeing rapidly growing retail supply starting to impact the retail
saying that their values have changed, and they look at life World’ by CBRE and Roland Berger, the current outbreak which likely will be further exacerbated by Covid-19. market and causing leasing rates to drop. The combination of
differently. This will have implications for what and how they of Covid-19 has had an unprecedented impact on the Retail is a dynamic and growing industry and e-commerce the global pandemic, technology-driven advancements and
consume in the future. global economy, resulting in a widespread spending freeze penetration is also seeing a surge, with more GCC retailers supply-driven challenges can leave GCC retailers and mall
Ahmed Reda, MENA Consumer Industry Leader and dramatic changes in consumer behaviour. Due to its moving online to keep their businesses afloat throughout operators with great uncertainty in respect of their future
at EY, said: “One of the many things that both interconnected nature, the retail industry is particularly the crisis. The shift to online is not only witnessed among positioning. Moving forward, retailers and mall operators will
organisations and individuals have learned from the vulnerable to the effects of this pandemic and has left retailers but also in the case of landlords, such as Dubai Mall, have to reimagine their current strategies not only to keep
shared experience of the pandemic is how resourceful retailers uncertain on both their immediate response and on to allow these destinations to remain relevant and accessible them relevant in today’s market, but also to anticipate the
and adaptable they can be. Now attention is turning to their future in a post-Covid-19 world. during these times of crisis. This unstable time has further future of the industry and ensure long-term success.

AL QANA
Abu Dhabi, UAE
Developer: Al Barakah International Investment

MENA