With UAE’s retail space supply set to grow by approximately six million square feet of Gross Leasable Area (GLA) by 2013, and demand for retail space making a healthy comeback at three to five per cent annual increase, the focus is once again on this industry to become a key growth sector in the region, according to David Macadam, Head of Retail MENA, Jones Long LaSalle. During his address, he referred to the study which determines the key factors behind the forecast as strong underlying economic growth despite the recent downturn, increasing household consumption, growing acceptance of modern retailing concepts and expatriate wealth. Macadam’s observations, based on Jones Lang LaSalle’s UAE Retail Market Overview (November 2010 UAE), came during a seminar titled ‘Turning Footfalls into Purchases: Improving Retail in the UAE’ held at the Dubai School of Government (DSG). The event that was co-hosted by Armada, the Dubai-based premium FMCG distribution company, focused on the short-and medium-term retail environment in the country. Macadam’s presentation was followed by a panel discussion featuring Shahram Shamsaee, Senior Vice-President - Shopping Malls, MAF Group, who spoke about issues related to customer service, while Robert Keay, Managing Director, Ethos Consultancy, addressed the marketing challenges in the UAE. Other panelists included Elio Pacheco, Director General, Evian Volvic Exports, who spoke on visual merchandising, and Susan Crotty, Assistant Professor at the Dubai School of Government, who explored the academic research on multicultural management and teamwork. Ruchdi Abou Haka, Regional Vice-President - Food and Beverage, Azadea Group, offered insights into consumer behaviour. Dr. Tarik Yousef, Dean of the Dubai School of Government (DSG), said: “The retail sector is one of the pillars of the UAE’s economy, and its competitiveness has boosted the country as a global tourism destination. However, challenges posed by the global financial downturn, as well as increasing international competition, mean that the industry must continue to reinvent itself through innovative approaches in order to sustain growth. This lecture has offered retailers the opportunity to learn directly from industry analysts and experts about specific trends, as well as possible avenues for improving competitiveness.” Michel Fattal, Vice-President of Fattal Holding and Chairman of Armada, said: “The UAE retail market is one of the most competitive and developed landscapes in the GCC and in the World; major international retailers have decided to establish footprint in that market. It is also a fantastic window for regional companies, who, through their presence in the UAE can anticipate upcoming changes in more traditional markets in the region.” Established in 2005 in cooperation with the Harvard Kennedy School, the Dubai School of Government is committed to the creation of knowledge, the dissemination of global best practices, and the training of policy makers in the Arab World. The School is focused on capacity building and conducts various programmes to promote good governance through enhancing the region’s capacity for effective public policy.
