Oman’s wholesale, retail trade stood at $6bn in 2017
The country’s retail industry is witnessing a change due to rising demand for global products, rise in population and steady influx of tourists, according to Alpen Capital
Times News Service
MUSCAT: Total wholesale and retail trade in Oman stood at approximately US$6 billion in 2017 up from US$5.1 billion in 2012, witnessing a rise of 2.3 per cent compound annual growth rate (CAGR) over the five-year period, according to the GCC Retail Industry Report published by Alpen Capital, an investment banking advisory firm. During 2016, the market in Oman witnessed pressure of economic slowdown and weaker consumer sentiments due to subsidy cuts, resulting in a 4.1 per cent decline in wholesale and retail trade. However, with the stabilisation of oil prices and the subsequent uptick in economic activity, wholesale and retail trade in the Sultanate witnessed a rise of 8 per cent in 2017.
The Sultanate’s steady economic growth has drawn significant investments in the retail sector. Though the current retail landscape in the Sultanate is largely dominated by standalone units, the concept of organised retail in the form of malls and shopping centres 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. The country’s retail industry is witnessing a change due to increasing demand for international products, rise in population (+4.7 per cent CAGR between 2012 and 2017) and steady influx of tourists (+8.9 per cent CAGR between 2012 and 2017).
Moreover, initiatives undertaken by the government in streamlining the retail infrastructure and strengthening investments towards infrastructure has helped the sector gain further prominence within the GCC markets.
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.
Alpen Capital’s GCC Retail Industry report presents an overview of the retail landscape in the GCC as well as a synopsis of the demand-supply dynamics of the industry.
“The GCC retail industry has witnessed challenging times in recent years but the long-term fundamentals of the sector remain intact.
Alpen Capital anticipates 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,” said Sameena Ahmad, Managing Director, Alpen Capital (ME) Limited.