Seven Middle Eastern and North African Countries Among Top 20 Most Attractive Emerging Market Retail Destinations

With seven countries among the top 20 in the latest 2008 Global Retail Development Index (GRDI), the Middle East/North Africa region is clearly the world's hottest region for retail expansion.  The annual Global Retail Development IndexTM is a study of retail investment attractiveness among 30 emerging markets conducted by management consulting firm A.T. Kearney.

The strong Euro supporting investment in theMiddle East/North Africa region, consumer familiarity with modern retail concepts and petrodollar wealth are the primary factors making the region an attractive retail destination. With more than $9 trillion flowing into the region by 2020, infrastructure investments will spur consumer and retail growth over the next decade, according to A.T. Kearney.    

Among the gulf countries, Saudi Arabia, with a robust 9 percent growth rate and low retail consolidation - less than 7 percent of the market is held by the top 5 retail players - is among the most attractive global retail destinations. 

North Africa has three countries in the top 15 rankings this year - Morocco, Algeria and Tunisia.  These countries are, on average, projected to grow by more than 6 percent in 2008 and are benefiting from tourism, trade with Europe and periods of political and economic stability.

"European retailers are especially well suited for expansion in the Middle East and North Africa because of  proximity and consumer familiarity with their brands," said Robert Ziegler, a partner with A.T. Kearney in Dubai.  "However, laws in some markets make entry difficult and lead to low brand diversification and limited consumer choices."

A full report on the 2008 GRDI is available at www.atkearney.com.