Qatar’s wholesale and retail trade grew to $15.3bn last year, accounting for nearly 10% of the country’s GDP in 2016, a new report by Alpen Capital has shown.
This represents a compound annual growth rate (CAGR) of 11.7% between 2012 and 2016, the report said.
Revenue diversification efforts and the consequent development of massive infrastructures and tourist attractions are drawing migrant workers and tourists to Qatar. In the last five years, population and international tourist arrivals in the country have risen at the respective CAGRs of 8.6% and 7.2%.
“Qatar’s growing population is also the wealthiest in the world, with the country’s GDP per capita (in PPP terms) recorded at $129,727 in 2016. Such favourable macroeconomic factors have enticed several international and regional retailers to establish presence in Qatar,” Alpen Capital said in its report titled ‘GCC Retail Industry’.
“Although the pace of growth decelerated in 2016 owing to an adverse economic climate, the wholesale and retail trade contribution to GDP has increased over the years, indicating the growing prominence of the industry,” the report showed.
The presence of an affluent consumer base, particularly in Doha, has attracted luxury retailers to the city. Despite an economic slowdown, spending on luxury goods by people in Qatar has remained strong, Alpen Capital noted.
With more organised retail space coming onstream ahead of the 2022 FIFA World Cup, several premium international brands are likely to enter the market. The recently-opened Mall of Qatar, spread over 5.4mn sq ft, signed an agreement with Doha-based Abu Issa Holding to rent out shops for 15 high-end brands.
Even as traditional souqs and standalone outlets form a major part of the retail landscape in Qatar, the space occupied by organised retail malls is growing rapidly. Doha remains the retail hub of the country.
At the end of 2016, some 15 malls spread over an area of 838,000 sq m were operational in the city.
Nearly half of the gross leasable area was added in the last five years, with the significant addition coming from the Mall of Qatar in 2016. The demand for retail space appears to be robust, with most of the retail space being occupied and the premium malls having a wait list.
As a result, retail rents at prime malls are rising. The monthly rents at existing malls in Doha range between QR170 and QR300/sq m.
Some nine new malls are under construction in the city, which once delivered, will add over 1mn sq m of gross leasable area, Alpen Capital noted.
