According to forecasts from the Business Monitor International (BMI), the United Arab Emirates could see a 30% increase in retail sales by 2014 as a result of increased expat wealth.
The economy in the United Arab Emirates is growing ever stronger according to reports on online news publication Emirates247. Household consumption is climbing and with it retail sales are set to increase from Dh 75.05 to an estimated Dh 97 billion by 2014.
The forecasts, which have been issued by the Business Monitor International, reveal that increases will occur in automobile sales, over-the-counter pharmaceuticals, electronics and food.
One of the biggest increases will be observed within the over-the-counter medication market, with sales in this area being expected to rise by 49% over the next four years, from $280 million USD to $420 million USD. Similar trends are anticipated in the automobile market with a forecast increase in sales from $11.56 billion this year to $15.45 billion in four years. Other projected increases are as follows:
Summary of Expected Retail Increases in the UAE
|Sector||Spend 2010||Spend 2014||Forecast Increase|
|OTC Pharmaceuticals||$280 million USD||$420 million USD||49%|
|Automobile||$11.56 billion USD||$15.45 billion USD||34%|
|Consumer Electronics||$3.07 billion USD||$3.91 billion USD||27%|
|Food||$7.13 billion USD||$8.44 billion USD||18.4%|
It is anticipated that the total population in the United Arab Emirates will rise from 4.7 million people to 5.1 million people by the year 2014 and with it there will be an increase in gross domestic product per capita to $72,631. According to research by Colliers International, the household spending power in the region is distributed as follows:
- National Average: $14,000
- Emirati households: $23,000
- Western households: $19,500
- Arab Households: $13,500
- Asian Households: $10,000
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