News DeskDubai, UAE – The retail industry in the Gulf Cooperation Council (GCC) is projected to reach a staggering USD 396.9 billion by 2028, growing at a compound annual growth rate (CAGR) of 4.6%, according to the Alpen Capital GCC Retail Industry report, unveiled at the 13th edition of the Middle East Retail Forum (MRF) 2024 in Dubai. Held at the JW Marriott Hotel Marina, the forum drew over 500 attendees, including key players from 300+ brands and 100+ thought leaders.
The event provided a platform for in-depth discussions on the trends and factors driving investment in the region’s retail sector. With sessions covering insights on retail intelligence, technology integration, and evolving consumer behaviors, the conference highlighted the market’s promising future. Amitabh Taneja, Chairman of the IMAGES Group, emphasized the significance of the forum, saying, “This year’s forum highlighted the future of retail, and we predict notable advancements enabled by the integration of the latest technologies.”
Alpen Capital’s report emphasized the dominance of Saudi Arabia and the UAE, which together accounted for 75.3% of the GCC retail market in 2023. The report pointed to key growth drivers, including increased digitalization, e-commerce expansion, and shifting consumer preferences towards experience-led commerce.
Joerg Meiser, Partner and ME Consumer & Retail Strategy Lead at Deloitte, shared insights from Deloitte’s consumer industry analysis, which showed that inflation had impacted consumer behavior in the region. While global inflation rose to 73% in 2024, the UAE and Saudi Arabia saw increases of 66% and 62%, respectively, leading to more cautious consumer spending focused on value.
A panel featuring leaders from brands like Mumzworld and Jumbo Electronics addressed the Middle East’s fertile investment landscape, the rise of omnichannel strategies, and the role of social media in driving sales. Emin Imer, General Manager of Hepsiglobal, noted that “micro-influencers have proven more effective than high-end personalities” in engaging niche markets, especially in sectors like electronics.
Technological innovation was at the forefront, with Zebra Technologies presenting an AI-powered check-out solution designed to enhance consumer experiences in retail stores. Additionally, Alshaya Group COO Steve Vickerstaff outlined the company’s expansion in Saudi Arabia, aligning with the Kingdom’s Vision 2030, which includes a commitment to local workforce growth and gender equality.
The forum also introduced the MENA Retail Compass, an annual research compilation offering retailers insights into emerging trends and growth opportunities in the region. The coffee table book, developed in collaboration with consulting giants like Deloitte and KPMG, is poised to become a vital resource for industry players.
The UAE FMCG Startup Innovation Summit 2024, held alongside MRF, showcased promising startups, with SHAKE YOUR PLANTS, NARH, and THE NATURE’S OWN FACTORY emerging as winners in a pitching competition. These startups are expected to contribute significantly to the evolving retail landscape.
The forum concluded with reflections on the future of retail spaces, with a focus on the potential of malls versus standalone stores, as well as omnichannel strategies designed to leverage consumer data for seamless shopping experiences. As the retail industry in the GCC continues to evolve, innovation and flexibility, particularly post-pandemic, are expected to drive the sector forward, with personalized consumer experiences becoming a priority.
The MRF 2024 successfully set the stage for the region’s retail future, which is expected to serve as a significant driver of economic growth in the GCC, positioning the region as a hub of retail innovation and investment.
