UAE: Diversifying its Economy, Eyeing on Retail Markets with Stores Such as Andre, Boggi, Colours & Beauty and Columbus Café - ZprymePosted by: Zpryme in News Room
Austin, TX (ZPRYME NEWS) – 08/27/08 – The United Arab Emirates as most have observed is among those with an open economy. Just like many of the oil rich countries, UAE takes pride of its high capita income as well as annual trade surplus.
UAE for the past decades tried to diversify its economy but despite that, the fact remains that almost half of the gross domestic product is from the oil and gas output.
Recently though, the prospects for economic diversification is growing as many retail groups are getting inside this oil rich countries to introduce new products to its consumer. In a report “UAE: Retail groups Azaeda opens 95 new stores in 2008”, it was reported that Azaeda aims to become at least one of the largest retail groups that operate in the Middle East. Azaeda Group’s expansion plan has to deal with developments in Middle East by opening up new stores in the Kingdom of Saudi Arabia, in Bahrain, in Lebanon, as well as in Romania. Among these stores that are set to open in the Middle East region are: Andre, Boggi, Colours & Beauty, Columbus Café, Cool Cat, Massimo Dutti, Forever 18, MOA, Oviesse, Piazza Italia, Salsa Jeans, Sunglass Hut, The Butcher Shop and Grill, Xanaka and many others. The Azadea Group is among the fastest growing retail groups in the world which carries with it 45 diverse brands of franchise portfolio. Among the most well known brands of the Azadea Group are Zara Mango, Sunglass Hut and Virgin Megastore which are expected to come to UEA in 2008.
Accordingly, UAE strives to address its diversification efforts through an increase in spending and expansion in infrastructure to accommodate more investments in the country. In fact, not only is physical infrastructure being developed, UEA is also in earnest efforts to redevelop its investment framework by offering Free Trade Agreements to countries like the United States which include 100 percent foreign ownership as well as zero taxes. The concern of UEA has been to overcome dependence on oil and to create a large expatriate workforce in order to increase employment in the private sector. With the opening of Azadea Group and more retail groups, UEA retail market and consumer market is expected to experience a shift in the economy in the coming years.
Mark Ishac & Zpryme: Emerging Markets Group
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