BMI View: Even though commodities markets have stabilised, UAE has entered a period of weaker economic growth. Lower budget incomes and more prudent government spending will decelerate the growth in household incomes, whereas even poorer economic conditions in the main tourist markets, such as eurozone and Russia, will have a pronounced impact on retail sales in Dubai and Abu Dhabi. ...BMI View: Even though commodities markets have stabilised, UAE has entered a period of weaker economic growth. Lower budget incomes and more prudent government spending will decelerate the growth in household incomes, whereas even poorer economic conditions in the main tourist markets, such as eurozone and Russia, will have a pronounced impact on retail sales in Dubai and Abu Dhabi. However, despite a weaker-than-usual growth, total household spending is anticipated to expand by -.- this year - the most throughout the forecast period. ...
...Dubai s Landmark Group signed an agreement with Abu Dhabi s Reem Mall to open -- franchised stores in an area of close to --,-- sq m. Reem Mall is planned to open in ----. Shopping centres are under development outside Dubai and Abu Dhabi as well: Majid Al Futtaim has announced a USD---mn redevelopment plan of City Centre Ajman mall, which will almost double the project s area and bring the store count to ---. ...Dubai s Landmark Group signed an agreement with Abu Dhabi s Reem Mall to open -- franchised stores in an area of close to --,-- sq m. Reem Mall is planned to open in ----. Shopping centres are under development outside Dubai and Abu Dhabi as well: Majid Al Futtaim has announced a USD---mn redevelopment plan of City Centre Ajman mall, which will almost double the project s area and bring the store count to ---. ...The growth in total household spending will stay rather vigorous, averaging -.- throughout ---------. Clothing & footwear, a key component of the UAE s retail sector, will grow at the fastest rate among main sub-sectors.
...The UAE s involvement in action against Islamic State increases the risk of it being targeted in revenge terrorist attacks by Islamist militants, which would impact the tourism industry. A continued decline in oil prices has the potential to destabilise the retail sector over the long term. ...A continued decline in oil prices has the potential to destabilise the retail sector over the long term. Rising costs of living in the UAE pose a threat to the level of disposable income that residents (and therefore consumers) have. Due to fiscal problems in the UAE historically and pressure on fiscal situation there is a likelihood of VAT being introduced during ----, with the IMF suggesting a - sales tax, which would increase costs for retailers. ...