\nThe retail real estate outlook for Egypt, Saudi Arabia and Kuwait is looking encouraging going into 2011, according to a new analysis.
\nEgypt has a massive under supply situation, says Matthew Jay, senior retail analyst at CB Richard Ellis Middle East. He points out that Cairo has around 400,000 square meters of gross lettable area (GLA), which reflects \u2018massive under supply relative to the market\u2019s potential and has spawned a major building programme.\n<\/p>\n
\nUntil the addition of new retail space, rents are expected to hold up as vacancies remain minimal while filling the vacuum, hypermarkets have become major retail development drivers.\n<\/p>\n
\nUnder supply of retail has prompted a spate of developments, notably Cairo Festival City being developed by Al-Futtaim, which is now under construction and on target to open in January 2012. It is modelled in part on Dubai Festival City complex, also by Al-Futtaim.\n<\/p>\n
\nLeasing of the stores began in the late autumn and the 140,000 square meter, three level shopping centre will host 250 international and regional retail brands, as well as a hypermarket, a multiplex cinemas, and food and beverage outlets. IKEA, Marks & Spencer and Carrefour are secured as anchors.\n<\/p>\n
\nMajid AlFuttaim Group is likely to invite bids for its 160,000 square meter Mall of Egypt project, one of the largest shopping centres in North Africa, in November. Plans include an indoor skiing facility by Ski Egypt similar to the one in Mall of the Emirates, plus 350 stores, a 17 screen cinema complex and an outdoor plaza and dining.\n<\/p>\n
\nThe Kingdom of Saudi Arabia KSA is now attracting 43% of all international retail brands surveyed and has overtaken better known retail destinations like Hong Kong, Russia and Japan but a lack of high quality retail space has deterred some international brands from entering Saudi Arabia KSA.\n<\/p>\n
\n\u2018The retail market is characterised by a strong presence from major retailers including local players such as Al-Aziza Panda and Al Othaim, regional operators such as Al Bandar Trading and MH Alshaya, and international companies such as Carrefour, G\u00e9ant, Debenhams and IKEA, which mainly operate through regional or local franchisees,\u2019 explained Jay.\n<\/p>\n
\nHowever, the opening of several new, Dubai style shopping malls, such as Jeddah\u2019s Mall of Arabia, should present more opportunities. UK retailer Alliance Boots opened there through MH Alshaya in March and retailers such as Hennes & Mauritz (H&M), Debenhams, Foot Locker, Mothercare, Starbucks and Topshop are all present in the market.\n<\/p>\n
\nAlthough Kuwait already had a number of shopping centers, the opening last year of two high profile projects, Tamdeen Shopping Centers\u2019 360\u00b0 Kuwait, anchored by Kuwait\u2019s first Geant hypermarket, and The Avenues Mall, enabled a number of international brands to enter the market for the first time.\n<\/p>\n
\nJay said that retailers have undoubtedly been hit by last year\u2019s downturn but retail sales are improving. \u2018However, retailers continue to push landlords for concessions including long rent free periods, break clauses, help with fit outs and turnover rents or low base and turnover rents. The prime malls can afford to be tougher in their negotiations and lease lengths have remained at three to five years,\u2019 he added.\n<\/p>\n
\nIn 2011, UK fashion department store Harvey Nichols will open as anchor to the third and final phase of The Avenues Mall through a franchise deal with MH Alshaya.<\/p>\n","protected":false},"excerpt":{"rendered":"
\nThe retail real estate outlook for Egypt, Saudi Arabia and Kuwait is looking encouraging going into 2011, according to a new analysis.
\nEgypt<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[],"tags":[],"persona":[],"class_list":["post-2908","post","type-post","status-publish","format-standard"],"acf":[],"yoast_head":"\n