The UAE construction sector is set to get a boost from the boom in the country’s retail sector, which is expected to grow over 33 per cent by 2015, according to a report.

The retail growth is attracting investment into other GCC countries, including Saudi Arabia, Kuwait and Oman, and to a smaller extent to Qatar and Bahrain, added the new report by Ventures Middle East, released in conjunction with The Big 5 building and construction exhibition, which will be held in Dubai, UAE, in November.

Dubai is the region’s leading retail destination, with the second largest number of global brands after London, the report said, highlighting that The Dubai Mall and the Dubai Shopping Festival alone attract close to 35 million visitors per year.

New developments on the horizon include Dubai’s recently announced Mall of the World entertainment and hotel district, which will include the world’s largest mall, spread across 8 million sq m. It will be built at an estimated cost of $6.8 billion.

“The UAE has earned a reputation as a successful global and luxury retail brands destination since it attracts wealthy visitors from around the world,” said George Kostas, CEO of Majid Al Futtaim  Properties, a leading shopping mall, retail and leisure developer, which owns and operates 17 shopping malls across the region.

“We expect an even greater investment in the retail and tourism sector in the lead-up to the Expo 2020,” he added.

MAF Properties plans to expand and refurbish its Mall of the Emirates, build a new shopping mall in the International Media Production Zone and a new luxury hotel at City Centre Deira.

“A rise in consumer purchasing power and a growing young and brand savvy population have made Dubai one of the world’s most attractive hubs for retailers. To meet these future demands, Majid Al Futtaim has committed to over Dh3 billion ($817 million) of new investment across our Dubai portfolio,” Kostas said.

Leading shopping projects across the region include the Vendome Mall at Lusail in Qatar, which is under construction at an estimated value of $1.37 billion, the planned $1.6-billion Al Diriyah Festival City in Saudi Arabia and the planned Muscat Festival City Mall in Oman.

“Leading retailers from around the world are all clamouring to enter the GCC market which has huge potential, and that’s only good news for developers in the region,” said Andy White, group event director of The Big 5.

“We are seeing increased activity across the entire GCC as countries continue to position themselves as destinations for major tourism events. Increasingly, visitors to The Big 5 are sourcing products for retail projects and we continue to develop our event to help professionals take advantage of this exciting opportunity,” he added.

Launched in 1979, The Big 5 international building and construction show is the Middle East’s largest construction exhibition. It runs from November 17 to 20 at the Dubai World Trade Centre. – TradeArabia News Service