Steadily making its place in the global retail industry, Dubai is ranked fourth among the top cities worldwide. A recent JLL’s Destination Retail report shows how 50 major global cities have risen to the top of the list for mainstream, premium and luxury retailers’ expansions. While the report shows domination from Asia Pacific markets, the rise of Middle East cities is a positive sign for the region. Besides Dubai, other Middle east cities making in the top 15 were Kuwait finishing at nine, Abu Dhabi at 11 and Jeddah and Riyadh tied at 12.
Dubai’s inclusion in the top five on this list comes as no surprise given its history of ‘shopping tourism’, with the widely-recognized Dubai Shopping Festival leading the way of Dubai’s involvement on the international arena. Dubai also has one of the highest levels of retail floor space per capita globally.
“Retail will continue to be a key pillar of the Dubai economy, and this report shows its strategy of attracting leading international retailers is working,” said Andrew Williamson, Head of Retail, JLL MENA.
“As Dubai looks to welcome 20 million visitors by 2020, retail will play a crucial role in drawing in visitors from all over the globe. The city has an impressive history, which is unmatched in the region when it comes to retail. And its position globally can only be enhanced given the high quality retail space on offer to the world’s best-known and most loved brands,” added Mr Williamson.
The report is an indication of how the Middle East cities are becoming eyed destinations for global retailer brands. The large available retail space and the supporting infrastructures signal reduced entry risks for these brands. These factors combined with limited domestic competition are proving to be an encouragement for the international retailing brands.
“Structural change is sweeping the retail industry as technology and e-commerce platforms become more sophisticated; however, demand for the right physical space, in the right location, is stronger than ever. Borders are becoming less of an issue for retailers pursuing opportunities overseas and we’re seeing the global retail landscape shifting fast to accommodate the change,” said James Brown, Director of Global Retail Research, JLL.