Page 43 - December 2021 / January 2022

360 Mall, Kuwait
Developer: Tamdeen Group

The Avenues Mall owned by Mabanee Company remains the largest pure shopping mall in Kuwait with over 800 stores. Largely occupied
with Alshaya Brands, The Avenues Mall has fared well over the past year with solid sales performance.
Muscat in Oman has recently enjoyed the opening of the Majid Al Futtaim owned Mall of Oman. Mall of Muscat in the north of Muscat
continues to attract large footfall with the massive Oman Aquarium. Retail sales in Oman have not kept pace with their northern GCC
neighbours. The average individual GDP per person is only 20 per cent of their wealthier gulf neighbours.
Retail in the Kingdom of Saudi Arabia in 2021 has also fared well and the retail industry in Saudi is alive and well. Country-wide Covid
lockdown, restricted travel and the general wealth of the population has contributed to an overall strong retail industry in the Kingdom of
Saudi Arabia. The expansion of new retail shopping centres in the Kingdom of Saudi Arabia is underway and the new shopping centres will
focus on entertainment, services, F&B and more value priced retail will emerge in the coming years. With a rapidly growing population of
thirty five million people and the majority of the population under the age of thirty, Saudi’s are forming families and acquiring new homes with
all the associated retail spending which accompanies household formation.
The welcome addition of women to the workforce has created great opportunities in the retail industry in the Kingdom of Saudi Arabia.
Women have taken employment roles within the retail industry in 2021 which has provided independence and income for many. The ability
for women to drive legally now in the Kingdom of Saudi Arabia also has proven a great boon for the retail industry. Women now travel
independently to and from shopping centres to shop and dine with friends.
Covid related challenges to the retail industry in the Kingdom of Saudi Arabia have caused a positive shift in the relationship between
retailers and shopping centre owners. Turn over rent, percentage of sales rental amounts plus service charges and electrical charges now have
become a normal occurrence with many retailers.
Bahrain retail suffered a slowdown in early 2021. Travel restrictions between countries such as Saudi and Bahrain caused a dramatic drop
in retail sales. Spending time in Bahrain in May, the shopping centres are poised and ready for travel to commence again and tourism driven
retail sales in Bahrain account for up to 30 per cent of the annual sales. The new and best shopping centres in Bahrain are alive and thriving
with all the world’s best brands and retail sales rose dramatically when the Saudi travel restrictions were lifted in mid-2021.
The UAE retail industry was impacted when travel restrictions were in place in early 2021. Today, with tourism providing up to 40 per cent
of the retail sales, the retail industry today in the UAE is now running at full speed. Expo 2020, travel restriction removal, high vaccination
rates and effective government management of the Covid challenges now has Dubai and Abu Dhabi back at full capacity. The visitors to Dubai
and Abu Dhabi are now occupying the hotels at nearly full capacity and restaurants are now full again with bookings well into the future.
Pent up demand by tourists is being well accommodated with the massive infrastructure investments the government has made in the past
few years.
Residential sales volumes are up, prices of residential villas, apartments and townhouses are increasing. Many new people are moving
again to the UAE. Household formation is rising and the associated retail spend is rising. Emaar Malls and Emaar Properties which are good
economic bell-weather indicators have released the best financial results in nearly a decade. The UAE is now back in business, bigger and
better than ever!

Msheireb Downtown, Doha, Qatar
Developer: Msheireb Properties

DECEMBER 2021 / JANUARY 2022 RETAIL AND LEISURE INTERNATIONAL 3