OREANDA-NEWS. RnR Market Research Offers Report by Research on United Arab Emirates Retail Report Q3 2016

BMI View: Lower oil prices and economic slowdown in Russia and China inevitably had a negative effect on tourism-dependent retail market in the UAE. With uncertainty persisting in the global markets, the country's retail growth will plateau to remain low by its own standards. However, with an anticipated 7.7% expansion in 2016, household spending will buoy UAE's retail sector helping it to stand out in the global context. Construction of shopping centres and residential and entertainment projects will persist beyond this year until Dubai Expo 2020 ensuring at least five years of robust economic growth.

Key Views & Developments

- Growth in luxury retail sector has slowed down in Q1 2016, as, according to Albawaba, some retailers registered declines in sales exceeding 10% signifying some of the worst months since the financial crisis prompted by worsened Chinese and Russian consumer sentiment.

- Household goods retail is getting a boost as MMS Gulf is starting construction of Art Centre, the first mall dedicated to homeware. The USD81mn shopping centre will house over 100 stores and will tentatively open in April 2017.