By Andy Sambidge
Increased spending power of expats set to drive retail sales to $150bn - BMI.
The UAE's GDP per capita is forecast to rise to more than $64,000 by 2014, driving a growth in retail sales in the country, a new report has said.
The spending power of UAE residents is set to increase by nearly a third in the next four years, Business Monitor International said in its latest Retail Report.
It said retail sales would grow from an estimated $107.3bn last year to more than $150bn in 2014, with increasing household consumption and rising expat wealth.
The report added that the retail sector would benefit from the UAE's return to robust economic growth from this year to 2014.
BMI analysts have predicted an average annual GDP growth of three percent over the next four years.
They also said the country's population would rise from 4.7 million last year to an estimated 5.5 million in 2014.
Last week, Dubai Statistics Centre released figures showing Dubai's population rose to 1.8 million in the first quarter of 2010, despite the impact of jobs losses among expat workers during the global economic downturn.
BMI's report forecast strong growth for over the counter pharmaceuticals, with sales expected to increase by almost 75 percent to nearly $500m by 2014.
Car sales are also predicted to rise by nearly 60 percent to $15.4bn over the next four years while sales of consumer electronic goods are seen rising to $3.7bn in 2014, an uplift of 40 percent.For all the latest UAE news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
This article has made me laugh.. Most of the big companies & economists are finding it extremely difficult to predict the very next year (2011). With due respect to their experience in the field, I wonder how they are able to make such predictions.. My prediction is that 2011 is not going to be any better than 2010. We shouldnt be surprised if it goes worst from here before we see some light at the end of the tunnel. We have to be cautious in every move and every dirham we spend..