Hundreds of firms vie for Metro retail space

IN DEMAND: Hundreds of companies are vying for retail space at 47 stations on the Dubai Metro.

Transport chiefs have extended the bidding period for retail opportunities at 47 stations on Dubai’s Metro Project following “huge” interest from local companies.

On Wednesday, the Roads and Transport Authority announced the deadline for securing spots along the $4.2 billion metro’s green and red lines is now Jan. 22.

The original deadline for registering interest in the Dubai Metro Retail Outlets Project was Jan. 15.

Rentable spaces on the metro lines are categorised into various commercial activities, such as restaurants and cafes (snacks), and eateries (with seating areas). Other areas include retail consumer items, real estate and banking services, and ATMs.

Abdul-Mohsen Ibrahim, CEO of RTA strategy and corporate governance sector, said the deadline was extended after hundreds of companies registered interest.

He added: “The concept of Metro Retail Outlets is somewhat new to the Middle East and is one of the key aspects for which retailer will be looking forward to in 2009.

“The project will enhance the liveliness of Dubai City, boost the business and tourist drive and bring about a huge change in public lifestyle.

“Moreover, metro lines are set to create a lot of new business opportunities in the retail market as statistics reveal that retail business is among the fastest growing sectors in Dubai, and total annual expenditure in this field is likely to hit unprecedented levels as high as 27.9 billion dirhams.”

The Metro’s red and green lines are expected to serve some 1.2 million commuters per day, averaging 27,000 people an hour on each. The RTA also said 355 million commuters will travel each year once the metro is fully operational.

“Dubai Metro will therefore account for 12 percent of total trips in Dubai and the regular flow of passengers, along with the provision of the required products, will provide retailers with a stable income and far-reaching distribution; which will reinforce the pillars of retail business in Dubai,” Ibrahim said.

“Even more, such human density rate is likely to rise with the projected growth of Dubai population to three million by 2017, and growth of passenger traffic to 15 million by 2010.”

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READERS' COMMENTS

More Hot Air and PR Spin
Posted by Brandaid on Thursday 8 January 2009 at 12:29 UAE time


Joe is absolutely right....Anyone else think that the deadline is extended because of lack of interest, rather than overwhelming interest? Of course I could be wrong, perhaps the retailers that are closing down their shops in the malls etc and all those companies that are laying off staff have found the metro stations the one shining light in which to expand their operations in the midst of a global meltdown........but I doubt it...

Wrong Projections
Posted by iPaw on Thursday 8 January 2009 at 10:09 UAE time

"The concept of Metro Retail Outlets is somewhat new to the Middle East" Somewhat ? Or totally new..! Retail sector is down along with tourism etc. Look at the roads of Dubai for proof, and their projections were made long, long back. Things have changed, drastically.

Metro stations retail plan
Posted by hiro bachani, dubai, uae on Thursday 8 January 2009 at 02:32 UAE time

We welcome the opportunity to show-case our Merlin tech-gadgets at the new , high-traffic retail hubs of the swanky metro stations. But the price should be right and affordable, not like at the malls. After all , business is about getting a decent bottom-line. The Malls have been pricing themselves out of sensible calculations. Soon, they will also face the reality of the market-place, like what is happening in the real-estate market in dubai and elsewhere.

What???
Posted by Joe, Dubai on Wednesday 7 January 2009 at 16:43 UAE time

This makes no sense....they have had such a HIGH level of interest that the deadline must be extended? No, a more logical scenario is there has been a LOW level of interest so the deadline has been extended in hopes more companies will submit bids. More "spin"!

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