GCC retail sector ‘to grow 15.7%’

GCC retail sector ‘to grow 15.7%’

The GCC retail industry will surpass pre-pandemic levels in 2022, register a 15.7 per cent year-on-year growth and reach a revenue of $296.8 billion. The industry is expected to further grow at a compounded annual growth rate (CAGR) of 5.7pc by 2026, says Alpen Capital’s latest retail sector report.

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 65.5pc year-on-year to reach $2.2bn in 2022 and further projected to reach $3.0bn by 2026, implying a compound annual growth rate (CAGR) of 8.4pc.

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

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 Alpen report said.

Sameena Ahmad, MD, corporate affairs, Alpen Capital said: “The industry was severely hit by the restrictions imposed during the pandemic; however, retailers were responsive to the