GCC retail sector overall will see 15.7% YoY growth in 2022 – Alpen Capital

GCC retail sector overall will see 15.7% YoY growth in 2022 – Alpen Capital

The GCC retail industry will surpass pre-pandemic levels in 2022 as it returns to steady growth after a period of disruption, with 36% year-on-year growth expected for FIFA World Cup 2022 host Qatar.

Mega events including the World Cup, the return of tourism and population growth are among factors cited in the return to growth, with Duty Free Sales at airports also expected to grow by 65.5% year-on-year to reach $2.2 billion in 2022 and further projected to reach $3.0 billion by 2026, implying a compound annual growth rate (CAGR) of 8.4%.

In its latest report, Alpen Capital projected that the GCC retail sector overall will see 15.7% year-on-year growth, reaching revenue of $297.8 billion in 2022, with a CAGR of 5.7% to reach $370 billion by 2026.

Qatar will see the highest growth in the region during 2022, with its sales expected to reach $18.5 billion, however, growth is expected to normalise at a CAGR of 3.5% after the World Cup, Alpen said.

Favourable demographics, improving macroeconomic factors and tourism revival will contribute to the growth, along with governments’ push for economic diversification and growing prominence of retailers who sell in both bricks and mortar and online settings, the report said.

“The industry was