(MENAFN- Muscat Daily) Muscat- Oman's retail industry is witnessing a change due to increasing demand for international products, rising population and steady influx of tourists, according to the GCC Retail Industry Report released by Alpen Capital, an investment banking advisory firm.
The report said that the sultanate's steady economic growth has drawn significant investments in the retail sector. 'Though the current retail landscape in Oman is largely dominated by standalone units, the concept of organised retail in the form of malls and shopping centers are gaining prominence. This is primarily driven by growing interest of residents in new lifestyle experiences and increasing demand for space from both global and regional brands who look to further establish their presence and broaden their portfolio to gain market advantage', Alpen Capital said.
The report said that the initiatives undertaken by the government in streamlining retail infrastructure and strengthening investments towards infrastructure have helped the retail sector gain further prominence within the GCC markets.
Total wholesale and retail trade in Oman stood at approximately US$6bn in 2017 up from US$5.1bn in 2012, witnessing an average annual growth of 2.3 per cent over the five-year period, according to Alpen Capital.
'Oman's retail infrastructure has been expanding at a brisk pace as several small to medium scale retail project developments shape the population's ever-increasing demand for a holistic experience. Apart from Muscat, many new projects are springing up in other cities such as Sohar and Nizwa supported by the government's efforts in moving towards expansion of the retail sector', the report said.
Sameena Ahmad, managing director at Alpen Capital (ME) Limited said, 'We anticipate that the GCC retail sector is likely to regain momentum, owing to strong fundamentals that include an expanding population base, high GDP per capita and growing tourism in the region. Economic recovery led by improving oil prices is expected to revive consumer confidence and improve discretionary spending.'
According to Alpen Capital, the size of the GCC retail sector is projected to grow at an average annual growth rate of 4 per cent from US$253.2bn in 2018 to US$308bn in 2023.
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