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Malls around the eMirates a shopping Centre inventory 2011

A CUSHMAN & WAKEFIELD RESEARCH PUBLICATION 2011

a CushMan & WaKeField researCh puBliCation

000 700. Ibn Battuta Mall Al Wahda Mall The Dubai Mall Mirdiff City Centre Mushrif Mall. The Al Ghurair Centre.000. Shopping centre development research was carried out on the basis of the retail provision detailed in official press releases and our internal database.000 300. New York and Paris on the luxury brand ‘high street’ as yet more designers scramble to open outlets at the ‘Fashion Dome’ and ‘Fashion Avenue.000 400. Dubai can now compete with London. The Dubai Mall.000 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Source: Cushman & Wakefield Research 2010 1 2 Oxford Economics Forecasts 2010 MENA FM. is now considered to be a top global retail location and has positioned itself on the global retail map. Dalma Mall Deerfields Town Square. Abu Dhabi Mall Sahara Centre.000 GLA (SQ M) 5. Our projected GLA figures account for population growth based on published forecasts.000. purpose-built retail facility. 8 November 2010 1 .A CUSHMAN & WAKEFIELD RESEARCH PUBLICATION 2011 MALLS ACROSS THE EMIRATES A SHOPPING CENTRE INVENTORY 2011 OVERVIEW The United Arab Emirates. opened in Dubai to an expectant public in 1981.000. ‘Nielson: UAE maintains its ranking amongst top 10 most optimistic nations’.000 200. Souqs and Hypermarkets are excluded. with a Gross Lettable Area of over 5. This Cushman & Wakefield Report examines the current supply of Shopping Malls across all seven Emirates of the UAE.000.000.000 2. This significant growth in all areas of commercial and residential real estate development has been a fundamental element of the outside world’s perception of Dubai – none more so than its grand temples to consumerism – the mega-malls.000 6. Dubai has become world famous for its glitzy designer boutiques.000 1.000. For the purposes of this report Cushman & Wakefield has defined a shopping centre as a centrally managed. Paragon Bay CuMulative uae retail supply(sQ M) 7. Since then. and Dubai in particular. All tables are based on information from Cushman & Wakefield’s in-house GCC Shopping Centre Database. the retail sector has seen phenomenal growth in supply especially over the last few years. Deira City Centre and new additions like Mirdiff City Centre have led the way and now form the template for retail expansion across the UAE and beyond.000 500. the first purpose built shopping centre in the UAE.’ The growth of the mega centres such as Mall of the Emirates. its electronic and gold bargains and its Annual Dubai Shopping Festival.000 600.000 4.000 sq m and comprising 10+ retail units.000 3. Safeer Mall Mall of the Emirates. charts how this development has occurred and forecasts for future supply to 2015.000 100. GLA (SQ M) total annual retail supply(sQ M) 800.000 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2014 2015 2015 Source: Cushman & Wakefield Research 2010 1 2 3 4 5 6 6 7 Marina Mall.000.

The UAE is expected to experience annual GDP growth of 4.411 3. the number of tourists in the first half of 2010 increased nearly 11 per cent y-o-y to over 745. The total number of foreign guest arrivals (excluding UAE tourists) fell 4 per cent y-o-y.14 1.7 2. In Sharjah.117 4.24 0.2 tOuRIsm Visitors have traditionally formed a core target market for retailers in the UAE and the tourism sector as a whole is performing well 5 in 2010. CPI Prices of goods are still increasing but at a lower rate to that witnessed in previous years. Source: Oxford Economics.089 14.9 7. Based on a study by Business Monitor International.900 2013 611.000.6 3. USD (bn) Real GDP growth.100 2015 675. uae Cpi Emirates CPI Abu Dhabi Dubai Sharjah Ras Al Khaimah Fujairah Ajman Umm Al Quwain Source: UAE National Bureau of Statistics % Change YoY 0. With its strong wealth and high consumer spending the UAE outperforms its regional peers. 3 Gulf News.408 4.6 million >20 million 4 14.060 4. tourist numbers were up 16 per cent y-o-y to just over 1 million in the period January-July 2010. % GDP per capita.548 5.13 1. after negative growth in foreign arrivals in 2009.4 million 10. They project that between 2010 and 2020. COnsumER COnfIDEnCE The latest consumer confidence survey by the researchcompany Nielsen shows that of those polled in the UAE. consumer spending will grow at a compound annual growth rate (CAGR) of nearly 5 per cent.2601. although growth is forecast to moderate slightly in 2011.800 2012 579.7 1.8 million REtaIl REVEnuE UAE retail revenue continues to register growth despite the economic slowdown across the globe. The report states that the UAE's retail sales have grown to over $107 billion in 2009 from $104 billion by 2008 and are expected to climb to over $120 billion by the end of 2011.Malls around the eMirates: a shopping Centre inventory 2011 RETAIL MARKET INDICATORS GDP Current GDP in the UAE stands at AED 527. USD Retail sales.59 1.6 per cent respectively. increasing to an average of 4.4 53. figures for H1 2010 show that the total number of hotel guests was up 9 per cent year-on-year (y-o-y).654 5.580 22. Only 28 per cent expected the country would be out of the recession in the next 12 months. the UAE ranks first in the retail business environment league table for the Middle East and Africa (MEA) region in 2010. Annual growth rate% 2008 251.60% over the next 5 years to 2015.423 23. 2010 shopping Centre FootFall Mall Dubai Mall Mall of Emirates Deira City Centre Abu Dhabi Mall Marina Mall *Estimated.379 7. to about 6.8 billion in 2020 according to Euromonitor International 3.7 2009 268. a drop from 42 per cent in the previous quarter.2 per cent of total spending. ‘UAE consumers ease back into spending mode’.000 2014 643.700 2011 548. the UK and the Middle East.422 22. Expenditure in the UAE is expected to reach AED 627.thedubaimall. These forecasts are based on economic recovery in major source markets. particularly the Eurozone. Real Population (in 000’s) 527. three quarters said they believed the country was in a recession.8 million.4 67. This can be largely attributed to a marked decline in visitors from Europe.59 0. Source: www. In Dubai.08 fOOtfall Annual footfall in major regional malls remains strong however the malls in Dubai continue to attract a significantly higher volume of visitors than their Abu Dhabi competitors. uae gdp and population ForeCast 2010 GDP.2 In Abu Dhabi. Recent data from Majid Al Futtaim shows that 50. whilst luxury goods accounted for 6. However the UAE is still ranked 10th in terms of the most optimistic nation.983 24. Fashion and travel account for 6.982 4 2010f 300. with tourist arrivals from the UK – the key source market – falling 16 per cent y-o-y. Relatively strong recovery in arrivals growth is anticipated in 2010 (but from a low base in 2009).3 57. USD Consumer spending per capita. 24 October 2010 4 Events and Promos ‘Deira City Centre’ 2 .192 5.7 per cent and 4. Cleofe Maceda.81 0. Major uae eConoMiC and retail seCtor indiCators6 Indicators Nominal GDP.com Annual Footfall (2009) 37 million* 30.190 COnsumER sPEnDInG A recent Dubai Chamber of Commerce report forecast that retail spending in Dubai would increase by 4 per cent in 2010 and by more than 8 per cent in 2011.05% from 2010 to 2011.6 2011f 323.2 per cent of total retail expenditure is in supermarkets and hypermarkets.4 64.

967 196.385. GLA per 1. at least in the short term. The Emirate has witnessed significant growth in terms of retail supply. Dubai 5 6 7 Business Monitor International .000 population in Dubai is set to fall to 1. MCC is likely to be the last of its kind.000 7 . The demand for new mega malls is unlikely to rise for another five years. Despite strong tourism and a projected rise in consumer spending.000 city population at Q4 2010 = 1. Dubai The Dubai Mall. 244 222.842* sq m . mostly wealthy tourists. Abu Dhabi 2009 3 . However a change in market conditions.A CUSHMAN & WAKEFIELD RESEARCH PUBLICATION 2011 DUBAI ExIstInG suPPly Dubai is the most established retail location in the UAE and remains the most advanced in terms of product. there has been an increase in mall vacancies. particularly in tier two locations that do not attract the same footfall as the ‘mega malls’. These upscale shops have been catering to affluent shoppers.000 183. but the future health of the local retail market will be primarily driven by the speed with which retail spending increases across the local and expatriate population. f = forecast Ministry of Economy.United Arab Emirates Tourism Report Q4 2010 Dubai Chamber based on data from BMI.385 sq m. Dubai has a staggering number of shopping centres devoted to high-end consumers. The tourism sector remains a significant component of retail spending in Dubai.514 Open in tbc 2008 2005 2010 2007 *excludes Mall of Arabia and Arena Sports Mall as completion date unknown DEVElOPmEnt PIPElInE As part of the $5bn City of Arabia project being developed by the Ilyas and Mustafa Galadari Group in Dubailand.722.261 sq m by 2015. More localised centres that create or enhance communities are expected to fare much better. coupled with a global economic crisis that stifled spending habits. is likely to be up against strong competition from the existing malls. Dubai’s supermalls have attracted the world’s most prominent brands in luxury retail.830 sq ft) with no significant additions to stock being recorded in the immediate term.999 sq m . . Deira City Centre. Total supply in Dubai currently stands at approximately 2. the 371.000 sq m Mirdiff City Centre in March 2010.Existing supply at Q4 2010 (GLA) = 2. it does recommence. For most retailers.385 sq m .673. expansion plans are either being revised downwards or cancelled altogether. We do not anticipate any further major mall supply until the completion of this project.000 currently at 1.400. Many of Dubai’s planned projects have been delayed significantly or put on hold. The project however has been put on hold and when and if. however the city’s stock of destination malls increased with the opening of the 130.512 350.Total supply in 2015 = 2. Unless the City of Arabia project goes ahead and Mall of Arabia is delivered.157 sq m . This reflects the anticipated population growth and uncertainty in the supply pipeline.Pipeline supply to 2015 (GLA) = 15. with its GLA per 1.512 sq m Mall of Arabia (Phase 1) was due to open at the end of 2010.157 sq m (25. is anticipated to initiate a transition that will lead mall owners to focus more on attracting domestic consumers.385.261 sq existing and planned duBai Malls ranKed By size Rank 1 2 3 4 5 Mall Mall of Arabia Phase 1 The Dubai Mall Mall of Emirates Mirdiff City Centre Dubai Festival City Owner Ilyas & Mastafa Galadari Grp Emaar Malls Group LLC Majid Al Futtaim Properties LLC Majid Al Futtaim Properties LLC Al Futtaim Sons GLA (sq m) 37.Existing GLA per 1.City population = 1.Projected GLA per 1000 city population in 2015 = 1.

Malls around the eMirates: a shopping Centre inventory 2011 duBai shopping Centre supply (opening date) Al Ghurair Centre (1981) Burjuman (1992) Dubai Festival City (2007) The Dubai Mall (2008) Mall of the Emirates (2005) Wafi City (1991) Deira City Centre (1995) Mirdiff City Centre (2010) Ibn Battuta Mall (2005) Arena Sports Mall (tbc) Mall of Arabia Phase 1 (tbc) Source: Google Map Data 2010 aBu dhaBi shopping Centre supply (opening date) Abu Dhabi Mall (2001) Paragon Bay ( 2011) Yas Mall ( 2012) Deerfields Town Square (2011) Marina Mall (2001) The Reem Mall (2013) Emporium at Central Market (2011) Al Wahda Mall (2007 ext. 2012) Dalma Mall (2010) Source: Google Map Data 2010 8 Abu Dhabi Statistics Year Book 2010 4 .

000 260.290 Open in 2012f 2013f 2010 2001 1999 ext 2011f 2011f DEVElOPmEnt PIPElInE The Urban Planning Council’s (UPC) Plan Abu Dhabi 2030.A CUSHMAN & WAKEFIELD RESEARCH PUBLICATION 2011 ABU DHABI ExIstInG suPPly Abu Dhabi’s retail market is currently undersupplied in terms of recreational mega malls compared with Dubai. Abu Dhabi’s GLA per 1. Dalma Mall. Abu Dhabi Mall and Al Wahda Mall.000 population at Q4 2010 = 936 sq m .080 sq m .486 sq m. A boutique shopping mall comprising 8. in early 2011. Anchor stores are to include IKEA and Geant.Existing GLA per 1.1 million sq m to 2030.322 8 .594 sq m and is mainly located in early generation shopping centres such as Marina Mall. • Yas Mall on Yas Island is currently under construction with scheduled opening delayed until at least 2012.594 sq m . Located at Al Bahia. Abu Dhabi 5 .Pipeline supply to 2015 (GLA) = 905. There are a large number of retail malls currently under construction including Yas Mall. The mall has a GLA of 296. 6 90. Abu Dhabi’s current shopping centre stock is approximately 908.000 sq ft) Carrefour hypermarket.000 sq m (107. New supply forecast to 2015 will add 905.000 97. comprising 700 shops on 3 floors.814.000 population is set to increase by over 80% to 1.000 sq m.000 Marina Mall. forecasts strategic distribution of retail space across the extended city of Abu Dhabi.690 sq m by the end of 2015.000 population in 2015 = 1690 sq m existing and planned aBu dhaBi Malls ranKed By size Rank 1 2 3 4 5 Mall Yas Mall The Reem Mall Dalma Mall Marina Mall Madinat Zayed (Shopping Centre & Gold Centre) Deerfields Town Square National Investment Corporation Abi Dhabi Muncipality Mubarak and Brothers Investments LLC Owner ALDAR Properties PJSC NREC GLA (sq m) 296.040 sq m will open in the platform link between the two towers.City population = 970. with the existing downtown. • Sun and Sky Towers on Reem Island are part of a Sorouh development scheduled for completion in 2010.000 115. Emporium at Central Market and Deerfields Town Square.486 sq m .000 150. Saadiyat Island and Yas Island representing the key retail locations over the long term.Total supply in 2015 = 1.000 sq m. however this is starting to change as new stock is developed. . Al Reem Island. Plan Abu Dhabi 2030 predicts future retail supply to reach 4. the mall includes circa 200 shops including a 10. Key projects under construction include: • The Deerfields Town Square project which is expected to be completed by Q2 2011.Projected GLA per 1. with a GLA of 90. Retailers can struggle to find suitable space in Abu Dhabi. Capital District.Existing supply at Q4 2010 (GLA) = 908. The average occupancy rates of malls in Abu Dhabi is approximately 90% and those offering leisure and entertainment provision are generally fully let.

700 sq m . 2015) Source: Google Map Data 2010 9 Ministry of Economy.Existing supply at Q4 2010 (GLA) = 193. This may be delayed to coincide with the development of the Sahara City Project mixed use development. Abu Dhabi 2009 6 . Sharjah has continued to remain in the shadows of larger and more established Dubai and Abu Dhabi.064 46. including the Gold Souk. have been refurbished or rebuilt.Malls around the eMirates: a shopping Centre inventory 2011 SHARJAH ExIstInG suPPly Retail in Sharjah has historically been focused on “high street” shops and traditional souks.later followed by Al Taawun Mall.593 37.603 sq m . . Anser Mall and Safeer Mall.Existing GLA per 1000 population at Q4 2010 = 191 sq m . opened in December 2010.500* 44.Total supply in 2015 = 223.Sharjah Mega Mall. Malls were introduced in Sharjah later than in Dubai.903 sq m . Three malls opened in 2001 .017. A number of the Souks.896 7. Union Mall.Projected GLA per 1000 population in 2015 = 199 sq m existing and planned sharjah Malls ranKed By size Rank 1 2 3 4 5 Mall Safeer Mall Sahara Centre Mega Mall Sharaj City Centre Union Mall Owner Al Safeer Group Abdulrahman Buktatir & Saaed Gobash Citadel Properties Majid Al Futtaim Properties LLC GLA (sq m) 51. Sharjah City Centre and Sahara Centre .Pipeline supply to 2015 (GLA) = 29.000 9 . Sharjah’s most recent shopping centre.850e Open in 2002 2002 2001 2001 2010 DEVElOPmEnt PIPElInE The Sahara Center is planning a three level mall extension comprising of 120 new stores with construction expected to commence shortly. *Existing size but additional 29. The retail offer tends to focus on the lower priced end of the market catering principally for local convenience needs.City population = 1.700 sq m planned sharjah shopping Centre supply (opening date) Sharjah City Centre (2001) Mega Mall (2001) Safeer Mall (2002) Al Mamzar Shopping Centre (2003) Sahara Centre (2002 – ext.

The planned Bin Ghedayer expansion of Dana Mall will cost AED 200m. family entertainment centre.935 13. 100 additional retail outlets and food court. 10 11 12 Ministry of Economy.A CUSHMAN & WAKEFIELD RESEARCH PUBLICATION 2011 UMM AL QUWAIN .Existing supply at Q4 2010 (GLA) = 66.387 sq m . FUJAIRAH -Existing supply at Q4 2010 (GLA) = 0 sq m -Pipeline supply to 2015 (GLA) = 56.Pipeline supply to 2015 (GLA) = 0 sq m .000 sq m.Existing supply at Q4 2010 (GLA) = 30.000 population at Q4 2010 = 0 sq m -Projected GLA per 1.Total supply in 2015 = 144. outside of the city of Ajman. DEVElOPmEnt PIPElInE: As far as we are aware there are no proposed retail developments for the next 5 years in Umm Al Quwain to 2015.000 11 -Existing GLA per 1.932 sq m .387 Open in 2013f ExIstInG suPPly Umm Al Quwain is one of the smallest and the least populated Emirates and therefore benefits from neighborhood retail provision as demand for shopping centres remains limited.Projected GLA per 1.070 Open in 2011f 2011f ExIstInG suPPly Ajman is the smallest Emirate by area. ExIstInG suPPly Aside from small community centres and supermarkets there are currently no shopping centres intt Fujairah. It followed the success of Dubai and became the second Emirate to offer freehold property. including a hotel.290 sq m Safeer Hypermarket.City population = 56.Existing GLA per 1. Existing retail supply includes Ajman City Centre.000 12 .000 population = 266 sq m .070 sq m including a 9. This attracted significant international investor interest and has led to the development or proposed development of a number of large scale retail projects. part of the Uptown Ajman project by Sweet Homes is due to be delivered in the first half of 2013. Many of these projects will be located in New Ajman.Projected GLA per 1000 population in 2015 = 484 sq m existing and planned uMM al QuWain Malls ranKed By size Rank 1 Mall Safeer Mall Owner Al Safeer Group GLA(sq m) 30.387 sq m Ajman Uptown Shopping Mall.000 population = 524 sq m existing and planned ajMan Malls ranKed By size Rank 1 2 3 4 5 Mall Ajman Uptown Shopping Mall Ajman City Centre Dana Mall Safeer Mall Ajman Factory Mart Al Safeer Group Majid Al Futtaim Properties LLC 13.500 sq m hypermarket. car parking and food court.800 2010 2005 2005 29. Other malls include Dana Mall with 200 retail shops on 3 floors and Ajman Factory Mart. and is due for completion by 2013.000 Open in 2008 Fujairah City Centre. The 78.399 1998 Owner GLA(sq m) 78.000 26. AJMAN . including a 7.000 10 . which is located on the main road from Sharjah to Ras Al Khaimah and Safeer Mall Ajman.000 sq m on one level.000 sq m .Total supply in 2015 = 30.Pipeline supply to 2015 (GLA) = 78. Abu Dhabi 2009 Ministry of Economy. The project is being developed in partnership with the government owned Fujairah Investment Establishment.Existing GLA per 1000 population at Q4 2010 = 536 sq m .070 sq m -Total supply in 2015 = 56.City population = 250.070 sq m -City population = 152. PIPElInE Safeer Mall Fujairah is currently under construction and is expected to comprise 26. The letting space comprises of 30.411 9. located opposite Ajman University and anchored by Safeer Hypermarket. Abu Dhabi 2009 Ministry of Economy. DEVElOPmEnt PIPElInE Many projects in Ajman are on hold or progressing very slowly. The only mall currently present in the Emirate is Al Safeer Group’s Safeer Mall which comprises 30. is a development by Majid Al Futtaim located on the Masafi Highway and due to open in 2011.000 population in 2015 = 334 sq m existing and planned Fujairah Malls ranKed By size Rank 1 2 Mall Fujairah City Centre Safeer Mall Owner Majid Al Futtaim Properties LLC Al Safeer Group GLA(sq m) 30.545 sq m .000 sq m . Abu Dhabi 2009 7 . close to the Emirates Road.

Existing GLA per 1. which is part of the WOW RAK theme park development. comprises government departments.Existing supply at Q4 2010 (GLA) = 92.Pipeline supply to 2015 (GLA) = 30.000 13 . markets.990 18. in the local community area of Kharan. the majority of the population are likely to continue visiting the capital to source their retail requirements however as Al Ain becomes increasingly established as a tourist destination. government departments.000 sq m planned ExIstInG suPPly Al Ain is the second largest city in the Abu Dhabi Emirate and the fourth largest city in the UAE.427 30. DEVElOPmEnt PIPElInE Based on currently available data.000 sq m (due for completion in 2012) will make it the largest shopping centre in the Emirate.011 12. Al-Jimi Mall in the Al-Jimi district.City population = 530. which sits inside the Al Hamra Village development. hotels and residential areas. houses the Emiri Court. shopping malls.100* 36.000 sq m Wahat Mall which is due to be delivered in 2011.Pipeline supply to 2015 (GLA) = 104.Malls around the eMirates: a shopping Centre inventory 2011 RAS AL KHAIMAH .299 15 . the only shopping centre in the pipeline to 2015 is the 30. The Eastern part.101 sq m .872 sq m .000 visitors in October 2010. Both the Al Hamra Mall.Existing GLA per 1000 population = 424 sq m .000 29. work well as community shopping malls and are catering to the steady rise in retail spending in RAK.Existing supply at Q4 2010 (GLA) = 224.Projected GLA per 1.Projected GLA per 1000 population = 435 sq m existing and planned al ain Malls ranKed By size Rank 1 2 3 4 5 2012f Mall Bawadi Mall Ai Ain Mall Al Jimi Mall Wahat Hili Al Foah Mall Owner Nael & Bin Hamal Investment Co. Bawadi Mall announced that it received more than 700. There are three main malls in Al Ain — Al Ain Mall in the town center. Due to the city’s proximity to Abu Dhabi. and Bawadi Mall located in the Al-Khrair District.000e Open in 2000 ext.000 population = 736 sq m existing and planned raK Malls ranKed By size Rank 1 2 3 4 5 Mall Manar Mall RAK Mall Safeer Mall Al Hamra Mall Mall of Ras Al Khaimah Owner HH Sheikh Saud Bin Saqr Al Qasimi Line Invetments & Property LLC Al Safeer Group HH Sheikh Saud Bin Saqr Al Qasimi GLA (sq m) 44. 2012f 2011f 2008 2010 AL AIN . and Safeer Mall. ExIstInG suPPly Ras Al Khaimah is located in the northern part of the UAE bordering Oman. known as "old Ras Al Khaimah".000 Open in 2009 2001 2001 2011f 2008 *Existing size but additional 56. representing a significant increase of 21% over the corresponding period last year. Al Ain is an important services centre for a wide area extending into Oman.Total supply in 2015 = 196.000 26. educational institutions.Total supply in 2015 = 254.000 sq m . The Western part.000 sq m . hospitals and houses the majority of the city's population.14 The city is rapidly reinventing itself as a tourism hub. Many Emirati nationals in Abu Dhabi have holiday homes in Al Ain and the city is developing as a tourist destination.000 population at Q4 2010 = 382 sq m . An additional 56.000 45.872 sq m .101 sq m . is expected to open in 2012. Abu Dhabi 2009 14 Government of Ras Al Khaimah 15 Abu Dhabi Statistics Year Book 2010 8 . it is likely that retail demand will increase and further projects may be announced in the next few years.City population = 241. The Mall of Ras Al Khaimah. Ras Al Khaimah Exhibition Center. DEVElOPmEnt PIPElInE Manar Mall in the Nakheel area of RAK is currently being extended. 13 Ministry of Economy. Al Farida Investments ALDAR Properties PJSC Sultan Bin Rashed Saeed Al Dhaheri Line Investments & Property LLC GLA (sq m) 110.445 43. known as Al Nakheel.

CONCLUSION Led by Dubai. implies that a mall that doubles as a neighbourhood centre stands a better chance of cornering loyal clientele. If all planned supply proceeds. KEY TRENDS IN THE UAE RETAIL MARKET tEnant mIx Brand diversification and integration of leisure amenities will become increasingly crucial as more supply enters the UAE market.9 per cent of total retail space in the United States.000 inhabitants across the 27 European Union Countries now stands at 231 sq m.000 population will have exceeded that of Dubai by 2015. helping to increase footfall both from the local population and tourists. especially for those at the luxury end of the market. maRkEtInG Participation in shopping events like Dubai Shopping Festival continue to play an important role in the ongoing success of a centre. particularly in markets such as Dubai. With limited pipeline supply in Dubai and Abu Dhabi shopping centre supply set to more than double. lOCal shOPPInG Neighbourhood malls targeting local communities and providing essential services are expected to dominate their sectors and to perform well.000 population currently exceeds that of the United States by approximately 35 per cent and is equivalent to six times the European average. This equates to 1. REDEVElOPmEnt Smaller and older malls will need to consider re-positioning themselves to appeal to specific market segments in order to 9 . incorporating leisure amenities will also continue to drive footfall. Despite the likely curtailment of the development of large scale retail malls in the city. Current shopping centre GLA accounts for 46. many through partnerships using a franchise model due to government regulations. all seven Emirates are now working actively on retail development projects to service their local markets as well as to attract visitors from outside their immediate region. the focal point for retail in the UAE may well be set to shift. REGulatIOn In the future. to ensure that supply is aligned with demand. implying the “end of an era for rapid new supply” of wide-scale shopping space. these statistics do indicate that a number of the Emirates are starting to reach saturation point.261 1.028 936 536 424 382 266 231 191 0 2015 GLA (sq m) per 1. PIPElInE Current market conditions are likely to impact on some of the more speculative retail developments. Some underperforming shopping centres may be redeveloped or even in some cases converted to other uses – as has been witnessed in US and European markets. Dubai’s GLA per 1. fRanChIsE Local and international retailers have begun expanding within the region. particularly in areas like Abu Dhabi which have ambitious plans for increasing visitor numbers and are still relatively undersupplied with shopping malls.386 1. Dubai will continue to be a hub for the region’s retail brands. Whilst benchmarking against regions with active high street retail provision may not provide a true reflection of the current situation in the UAE. Some local retailers are also considering expansion into Europe and America. The nature of the traditional shopping experience in Arab culture. according to C&W’s Shopping Centre Development Report Europe (Sept 2010). The development of community-led retail establishments or smaller community shopping malls could offer a window of opportunity for the retail sector.690 484 235 736 524 199 334 EnD Of an ERa There is unlikely to be sufficient demand for another mall in Dubai in the immediate short term. regulators will need to be stricter in issuing licences for new malls and shopping centres. particularly due to limited liquidity and the difficulty in obtaining finance.000 population 1.27 Sharjah Fujairah Source: Cushman & Wakefield Research 2010 compete with new destination malls. gla (sQ M) per 1000 population Location Dubai United States Abu Dhabi Umm Al Quwain Al Ain Ras Al Khaimah Ajman EU .000 population.A CUSHMAN & WAKEFIELD RESEARCH PUBLICATION 2011 INTERNATIONAL BENCHMARKS Average shopping centre provision per 1. Retail growth will continue hand in hand with tourism development.000 population 1. aCtIVE assEt manaGEmEnt Owners and managers of shopping malls will have to consider implementing active management strategies to re-align their properties to retain value.028 sq m per 1. 2010 GLA (SQ M) per 1. Abu Dhabi’s GLA per 1. The evolution of the ‘shopping resort’ concept.

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