Qatar’s retail market is booming, fueled by infrastructure investments for the 2022 World Cup, drawing tourists and investors.
Qatar is becoming a major retail hub in the MENA region. This is thanks to the massive infrastructure developed for the 2022 FIFA World Cup leading to major growth in appeal amongst tourists and investors. Through the investments made, Doha now boasts 880,000 square meters of new retail space. This has helped position Qatar as a top destination for tourists and investors alike.
GOVERNMENT INVESTMENT PAYS OFF
Over the last decade, the Qatari government invested a huge $330 billion into modern infrastructure. The dividends are now beginning to pay off as more tourists start arriving in the country. With this in mind, Qatar has now transformed into a modern state with many attractions that keep on growing in number. Among the latest additions is the $5.5 billion Simaisma Project.
Faisal Durrani, Partner and Head of Research for MENA at Knight Frank, believes luxury retail is a key lure for visitors. Qatar has positioned itself as a destination for leisure and retail, he mentions. So the luxury retail sector continues to drive the growth of the Qatar retail market.
GROWING POPULARITY OF QATAR’S RETAIL MARKET
Knight Frank's research shows retail is the second most popular investment class for GCC nationals and expats. About 79% of regional visitors also come to Qatar primarily to shop. The growing luxury retail sector is a major reason for this interest.
For GCC nationals aged 18 to 45, retail is just behind branded residences as a top investment choice. Retail is especially popular with Saudi and Emirati investors with 40% of Saudis and 36% of Emiratis expressing interest in the sector. The luxury retail market is what appeals to both locals and expats.
GCC VISITORS BOOST RETAIL AND TOURISM IN QATAR
Qatar's proximity to other GCC countries makes it a prime shopping destination. Saudi Arabia and Bahrain lead this interest, with 85% of each of their citizens interested in visiting Qatar for shopping. The UAE and Kuwait aren’t far behind, with 76% and 75% of their nationals also showing interest.
The cultural and geographical proximity of Qatar plays a major role in this retail interest. Being only a short trip away, Gulf residents share many of the same values and traditions with Qatar. So, this makes Qatar appeal to them as an ideal destination for luxury shopping. Saudi Arabia, in particular, emerged as the top source of tourists in 2023, followed by Bahrain and the UAE.
QATAR’S LUXURY RETAIL SECTOR SHINES
Qatar’s luxury retail sector continues to grow rapidly. High-end malls with international luxury brands attract visitors from all over the GCC. These malls offer exclusive and unique shopping experiences for all.
Jonathan Pagett, Partner of Retail Advisory at Knight Frank, says luxury brands and world-class malls are key to Qatar’s retail success. Qatar is also committed to improving its retail experience. Events like the annual Shop Qatar festival showcase luxury brands and boost the country's reputation. These events create a stage for luxury brands and offer a unique shopping experience.
WHY EUROPEANS AND HIGH EARNERS SHOW INTEREST
Knight Frank's research shows high earners show a keen interest in Qatar's retail market. Nearly 88% of people earning between QR22,500 and QR25,000 a month are keen on shopping holidays in Qatar. 86% of those earning more than QR25,000 also shared this interest.
Luxury brands, competitive prices, and an exclusive retail experience draw these customers in. Qatar, especially, offers a broad choice of high merchandising along with top-quality shopping options. This growth of Qatar's luxury retail segment will boost demand for the country's retail sector further. So this trend shows Qatar's growing importance as a luxury shopping destination in the MENA region.
A BRIGHT FUTURE FOR QATAR’S RETAIL MARKET
Qatar's prime location, combined with the growing luxury retail sector, has made it one of the most sought-after retail destinations. In particular, increasing numbers of GCC nationals, expats, and high earners are coming to Qatar for shopping holidays. This is thanks to key investments in infrastructure, modern shopping centres, and luxury retail. So the efforts of the country to position itself as a luxury retail destination have begun to pay off. It's playing a main role in shaping Qatar into one of the best tourism and investment destinations.
Mall operators and developers could benefit the most by providing greater choices. In particular, focusing on luxury shopping paired with cultural experiences looks like a sweet spot. By focusing on what tourists want the most, Qatar can continue to build on its retail market. Drawing this focus towards high-income tourists holds the greatest significance. So with the right approach, Qatar has the potential to become the region's newest and most exciting retail hub.
Ryan Keeler | Oct 01, 2024
