Page 41 - #202 October 2025

The GCC Retail Reset: But the boom is not evenly distributed. Secondary assets are show- high-frequency grocery and service spend.

ing signs of oversupply. JLL’s ‘KSA Retail Market Dynamics Q2 2025’ Tourism is the backbone of retail. Dubai’s international visitor
From Destination Malls highlights that occupier demand is healthy but selective. Brands prefer surge and Saudi Arabia’s mega-events pipeline demonstrate how hos-
pitality and retail are intertwined.
prime, well-managed centres, while older properties need reposition-
Repositioning beats greenfield projects. Developers are remixing
to Daily-Needs Powerhouses ing - subdivision of large units, repurposing for non-retail uses, or tenants, adding clinics and education and carving large units into
digital upgrades - to remain viable.
multiple high-yield spaces. This offers faster returns than building
Ahead of our MENA feature over the Qatar, Oman, Bahrain, Kuwait: Stabilisation, Selectivity and new malls from scratch.
coming pages, David Macadam, Service-Led Formats Data-led strategies win. Retailers are optimising portfolios
CEO of MECSR offers an Beyond the UAE and Saudi Arabia, the smaller GCC markets are with one or two high-profile flagships per city, supported by mul-
overview on the region and showing signs of stabilisation and selective growth. tiple community outlets mapped against catchment demand and
discusses with us how scarce delivery radii.
supply, booming tourism and ƽ Qatar recorded a 29.8 per cent increase in total real estate transac-
rising retailtainment are the key tion value to approximately $2.4bn in Q2 2025, reflecting renewed What this means for Global Retailers and Investors
themes reshaping the GCC’s investor confidence, according to ValuStrat’s ‘Qatar Real Estate Q2 For UK and European brands, the GCC is no longer only a prestige
retail future. 2025 Market Report’. Doha’s dominant malls continue to attract play. Success comes from a dual strategy: flagship visibility in prime
spend, refreshing tenant mixes with F&B and family entertainment. malls that builds awareness and captures tourism spend and com-
For readers in the UK, the Gulf Cooperation Council (GCC) ƽ Oman is entering a positive stabilisation phase. Savills’ ‘Oman Q2 2025 munity integration through smaller, daily-needs locations embedded
often conjures images of mega-malls - Dubai’s Mall of the Market Report’ notes that modern malls are focusing on service-led ten- in neighbourhoods.
Emirates, Riyadh’s Boulevard and Doha Festival City, each a ants such as healthcare, fitness and education alongside retail to balance Landlords, meanwhile, are evolving into curators of mixed-use
spectacle in scale and design. That image remains true, but it discretionary categories. experiences. The most competitive assets are integrating leisure,
is only part of the story. As of 2025, the region’s retail markets ƽ Bahrain is emerging as a luxury retail niche. Global brands like healthcare, fitness and even education alongside traditional retail.
are in the middle of a reset. Chanel have recently opened in Manama, with Marassi Galleria Investors should prioritise repositioning and refurbishment oppor-
Two forces - tourism-led demand and structurally tight spearheading a new upscale positioning, highlights Vogue Busi- tunities, which often deliver stronger returns in today’s environment
supply - are pushing prime assets to outperform, while growth ness – Bahrain Luxury Retail. than greenfield projects.
is accelerating in community-based retail formats that meet ƽ Kuwait maintains a constructive outlook, with resilient household
daily needs. For international retailers, investors and landlords, consumption and expected reforms in 2025. Analysts anticipate Final Thought
this means the playbook is changing: success depends on bal- that retail demand will grow, particularly in affluent neighbour- The GCC retail market is evolving from spectacle to substance.
ancing global-scale flagships with everyday convenience. hoods and mixed-use hubs, says Savills’ Kuwait 2025 Outlook. Mega-malls will continue to symbolise the region’s ambition. Tour-
ism spend in the largest most established retail environments tops
UAE: A Landlord’s Market Powered by Tourism and Five Truths Shaping GCC Retail 40 per cent of annual sales revenue.
-
Community Retail Supply is tight where demand is strongest. Global cost pressures have The real growth story lies in weaving retail into daily life - balanc
CBRE’s ‘UAE Real Estate Market Review Q2 2025’ highlights that muted new construction, making prime GCC retail space scarce. Brands ing experience with convenience and value. For CEOs, the challenge
the United Arab Emirates is leading the region’s retail momen- that move quickly can secure units; others face long waiting lists. is to adjust strategies to this new reality.
tum. Real GDP is projected to grow 5.1 per cent in 2025 (up from Experience and essentials are twin engines. Saudi malls thrive on The GCC remains one of the most dynamic retail frontiers in the
3.8 per cent in 2024), underpinned by diversified growth and leisure and entertainment; while UAE neighbourhood hubs capture world, a truly multi-dimensional retail arena.
strong visitor numbers. Dubai alone welcomed a seven per cent
year-on-year rise in international tourists between January and
May 2025, feeding directly into retail performance. The Dubai Mall, Dubai, UAE
Prime mall space remains scarce and landlords are in control as
rents edge higher. New supply is limited, suggesting the landlord’s
market will persist in the near term. But growth is not confined to
malls. According to JLL’s ‘UAE Retail Market Dynamics Q2 2025’
report, demand is expanding into convenience-centred commu-
nity retail: supermarkets, gyms, clinics and F&B operators serving
daily needs in fast-growing residential districts.
This signals a shift in strategy for brands. Instead of relying
solely on flagship stores, they are adopting hub-and-spoke net-
works - a few showpiece locations complemented by smaller,
high-frequency neighbourhood presences.

Saudi Arabia: Retailtainment Scales up while Secondary
Oversupply Looms
Saudi Arabia’s retail landscape is undergoing a transformation
of scale and style. Under Vision 2030, the Kingdom is embrac-
ing retailtainment - integrating leisure, dining and shopping to
extend dwell time and diversify revenue. According to CBRE’s
‘Saudi Arabia Real Estate Market Review Q2 2025’, this is sup-
porting stable rents and high occupancy in Riyadh and Jeddah’s
super-regional malls.
Entertainment-anchored projects, including SEVEN’s
portfolio of new destinations, are redefining how malls
compete. Cinemas, gaming zones and immersive F&B expe-
riences are now expected anchors.

40 RETAIL & LEISURE INTERNATIONAL OCTOBER 2025