The Middle East toy market is worth approximately $1.5 billion per year with a current growth of 11.8 per cent per annum, a study says.

The massive expansion of retail real estate and the growing population are fuelling the growth of this sector, said the research by Epoc Messe Frankfurt, organiser of Middle East Toy Fair which will take place from March 31 to April 2, 2008, at the Dubai International Convention and Exhbition Centre.

It said more than 16.35 million sq m of gross leasable area (GLA) is expected to be completed by 2010 in the region.

“This represents an increase of 565 per cent in available GLA found in the region since 2000, which then stood at 2.46 million square metres,” said show manager of Middle East Toy Fair Monica Schulz-Blank.

“Within the GCC, the UAE and Saudi Arabia will see the highest GLA increase, with Dubai witnessing the largest actual increase from 1.17 million square metres in 2006 to 4.25 million square metres by the end of the decade.”

”This massive expansion in shopping malls in the Gulf combined with an increasing population growing at six per cent annually augurs well for the toy industry,”’ she added.  “Over half of the national populations of the Arabic Gulf states is under the age of 16 years and each family has an average of five children making the Gulf a very lucrative market.”

It also revealed that the average yearly expenditure per child on toys and video games in the Middle East is $327 which makes it twice the level of expenditure in Europe and the second largest spend after North America.

The increase in shopping mall space in the Gulf is nearly 50 per cent each year for the last few years, and there are current plans to spend over $26 billion on building new shopping malls in the Arabian Gulf states over the next five years, stated the study.

Reflecting on the industry Ms Schulz-Blank said that on an average 5-7 and even 10 per cent of the space in any retail development across the region is being devoted to family entertainment areas and related stores. Entertainment and Toy stores are fast becoming the anchor for shopping malls across the region.

By 2009, Dubai will have the highest retail spend in the GCC, even higher than Saudi Arabia, despite having a lower population than Saudi. This will be due to the retail income generated from about 15 million tourists.

Abu Dhabi’s GLA is set to increase from 574,000 square metres at the end of 2006 to 1.4 million square metres by 2010, representing a total rise of 145 per cent, while Bahrain is expected to see a 216 per cent increase with shopping centre increase in Manama increasing to 600,000 square metres.
As far as the Middle East is concerned, the Toy industry is in for a huge leap . The big players in the industry, The Toy Store, Emsons, Simba Toys Middle East, Kidz Inc., Al Shula Trading  are looking forward to replicating the success across the region and also beyond, in surrounding countries that look up to Dubai for latest concepts and designs.

These countries can emerge as an important toy export or import destinations for Dubai. Dubai's strategic position enables it to tap surrounding markets like the Levant, Iran, Eastern Europe, Africa, Asia and the Indian subcontinent. – TradeArabia News Service