Oman set for robust growth in retail sector

Muscat: Industry observers expect the country’s retail sector to be at a prime position to significantly contribute to the GCC’s continuing retail growth story as a result of the increasing demand among young markets, the growing interests of residents in new lifestyle experiences, and the influx of tourists entering the Sultanate.
More than 6.2 million sq.m. of retail facilities are expected to take up significant spaces across the Gulf Cooperation Council (GCC) countries within the next five years, according to a recent report from Alpen Capital, which also said the market has the potential to grow by as much as US$313 billion by 2021 and become a major contributor to the region’s non-oil economic development.
Market confidence in Oman has been attributed mainly to the country’s soaring economic growth, which is projected to rise to 2.9 per cent this year from 1.1 per cent in 2017. Among GCC countries, Oman is seen as the fastest growing economy, with tourism being one of its key economic components, as arrivals are expected to increase at a compound annual growth rate of 13 per cent between 2018 and 2021, according to a report by Colliers International.
Retail spaces have consistently expanded in recent years as major developers mostly from pan-GCC retailers and large-scale malls flock the Sultanate to set up shop, taking up new spaces in cities such as Muscat, Sohar and Nizwa. The CBRE reported that more than 100,000 sq.m. of facilities were delivered in 2015 and more new developments are coming in the next few years.
“One can owe the success of Oman’s retail sector to the country’s economic diversification strategy, which focuses on retail and tourism as among the key drivers for growth,” said Shaikh Raid Bin Abdullah Al Araimi, Vice Chairman of the Al Raid Group. “We are keen to support the country’s move and we have witnessed the government’s efforts in moving towards the sector’s further expansion. Our major projects in the retail sector seek to be innovative and are uniquely designed to bring about a combined retail and leisure experience to mall visitors.”
The Al Raid Group’s latest project, Al Araimi Boulevard (ABLVD), presents a strong product offering amidst a growing number of mall developers from across the region entering the market. Retail trends show that consumers are constantly evolving and seeking new avenues for expression, which makes a closer understanding of the local market a clear advantage. The Al Raid Group’s massive retail and fashion complex is carefully designed to seamlessly blend natural greeneries and treasure troves with architectural design.
“The retail race in Oman is on and indeed, it is attracting the region’s attention as many investments are flowing into the local market,” said Al Araimi. “We are confident that innovation is a key factor that developers should always consider in order to prosper in the sector and gain a market advantage. Oman’s retail story is still being written and we are keen to make it a continuing success story in the years to come.”