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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