Gulf mall operators rein in expansion as retailers reel from COVID-19

Gulf mall operators rein in expansion as retailers reel from COVID-19

DUBAI (Reuters) - Mall operators in the Gulf region are delaying new mega-projects as the coronavirus pandemic and low oil prices upend a retail industry built around huge centers catering to tourists and wealthy locals.. Emaar Malls, owner and operator of the world's largest shopping center, Dubai Mall, did not respond to a request for comment.. MAF, which operates 27 malls across the Middle East, said retailers in the Gulf region were not expecting a meaningful recovery for the sector in the next 18-24 months.. Foot traffic at its malls in the United Arab Emirates in May was less than half of what it was a year ago, it added.. The slow move to online sales in the region has compounded retailers' problems.. A senior executive at a large fashion conglomerate, who declined to be named, said 96 percent of sales last year in the Gulf came from malls, versus four percent from e-commerce.. Online sales in Saudi Arabia accounted for about 0.8 percent of retail sales in 2018, and 1.5 percent in the UAE, according to a Boston Consulting Group report.. Many mall operators have offered a digital platform for shops to place products online to help cope with