According to the Retail Operations Index by analytical agency Arcadis, the UAE ranked eighth in the world in terms of attractiveness for doing retail business, which will give a positive impact on the commercial real estate market in Dubai and Abu Dhabi.
The Index rates different countries according to five main criteria: the quality of infrastructure, market demand, economic conditions, the ease of setting up and operating a business. UAE managed to take a place in the top ten countries rating due to the high quality of infrastructure, which, first of all, refers to a large number of convenient and new commercial properties at a good price, and also due to favorable economic conditions.
Three leaders of the rating are Hong Kong, Singapore and the United States.
Christopher Seymour, an expert on the Middle East market in Arcadis, said that the UAE strategic location, as well as a wide range of commercial property for sale and lease, is making the country more attractive to retailers and in the future will help further expanding this industry in the region.
According to JLL, there are 2.9 million square meters of retail space in Dubai today, and another 786,000 square meters of commercial property is to be handed over before the end of 2017. Abu Dhabi now has 2.6 million square meters of commercial property, and another 250 thousand square meters due to be delivered before the end of the same period.
One of the largest developers in Dubai Dubai Holding started the first construction phase of the largest shopping mall in the world Mall of the World this year, which is going to have almost two times more retail space than the overall currently available commercial property in Dubai accounts for, which is about 4.5 million square meters.