Oman’s retail sector expected to expand 9.3% in five years

Muscat: Retail sales across four Gulf countries are projected to increase by more than US$24 billion over the next five years, with Oman’s retail industry expected to rise 9.3 per cent during that period, according to global research firm Euromonitor International.

Research from the company indicates that Oman's retail industry is worth $10.3 billion and is forecast to steadily rise to $11.3 billion by 2023. While store-based retail is expected to continue to dominate, with it currently accounting for $10 billion of the overall market in Oman, non-store retail, including online shopping, is expected to grow by 68 per cent from 2018 to 2023.

Euromonitor’s latest report reveals that Kuwait, Oman, Saudi Arabia and the United Arab Emirates (UAE) are all set to capitalise on the rise in consumerism thanks to favourable demographics, a rise in population and a strong growth trajectory in tourism and per capita income.

The value of non-store retailing is also forecast to increase across the other three Gulf markets surveyed between 2018 and 2023, with Saudi Arabia expected to account for the biggest growth of 93.5 per cent, followed by the UAE (78 per cent) and Kuwait (48 per cent).


Commenting on the forecasts, Fahad Kazim, Vice President of Meydan Malls, said, “As the Euromonitor report suggests, the retail sector is bound to grow in the coming years despite the recent slowdown. The long-term outlook of the sector remains strong and is expected to welcome a steady growth through to 2023."

“A strong contributor to the growth of the sector is proactive initiatives taken by the government in streamlining the retail infrastructure and strengthening the investments and tourism landscape of the region,” he added.

“Keeping up with this trend, the brick-and-mortar retailers are expected to gradually adopt the omni-channel business model to establish an intuitive and smart communication with consumers across online and offline platforms," Kazim said.

“The needs of consumers have changed and today’s shoppers desire an engaging, personalised and streamlined experience. This is what we bring to the market, delivered through careful learning to tailor-make what consumers, the international retail community and all the stakeholders involved want,” he said.

A two-day Retail Summit will be held in February 2019 under the patronage of Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai.

More than 800 attendees are anticipated to attend the event. Headline speakers will include billionaire entrepreneur and Virgin Group Founder Sir Richard Branson; Hamad Buamim, President and CEO, Dubai Chamber of Commerce and Industry; and beauty powerhouse Huda Kattan, founder and CEO of Huda Beauty.

Times of Oman Contribution Time: 11-Dec-2018 03:24 (GMT)
Times of Oman Last Update Time: 11-Dec-2018 03:24 (GMT)