WORLD WRAP |
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spending as well due to various travel restrictions to the Arabian country.
Impact: Tourist Spending
If the situation continues or worsens, then Qatar’ s tourism industry which leads to tourists spending on luxury retail goods could suffer a severe impact. While the travel ban has affected Qatar Airways flights, its real implications for consumers in Qatar, are still unclear. Despite the Arabian country being home to luxury brands such as Prada, Dolce & Gabanna, Gucci, etc. it is far less a global destination against the likes of Dubai, a point that is reiterated by Euromonitor International, and for whom Qatar’ s luxury market is smaller than most other countries in the Gulf. But this has to change as the country will play host to the 2022 FIFA World Cup and therefore, much of the country’ s retail development is scheduled to open just before the sports event, which is expected to bring in a million visitors.
According to the Real estate firm DTZ, Qatar’ s retail space will grow by 220 per cent by 2019. This is evident as
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last December saw the opening of the 5,00,000 square metre Mall of Qatar, the nation’ s 15th major retail complex, whereas other retail developments such as the US $ 290 million North Gate Mall, the 57,605 square metre Marina Mall and the outdoor Katara Mall, which will house Qatar’ s first Galeries Lafayette, are underway. |
Impact: Domestic Market |
As per Euromonitor International, Qatar’ s apparel and footwear market was worth US $ 1.3 billion in 2015 and it is forecast to grow by 51 per cent by 2019. Another emerging intelligence firm BMI Research expects consumer spending in Qatar to grow by 3.2 per cent in real terms in 2017, which will see consumer spending levels in the country to reach US $ 31 billion. But the concern is rather to do with logistics, as a few fashion and luxury brands distribute to Qatar via UAE, where they have partnerships with Dubai-based operators and Qatari local brand partners to Doha, who also import from Europe via the UAE. But BMI maintains that the‘ gasexporting Qatar’ still has huge fiscal |
Qatar’ s luxury market is smaller than most other countries in the Gulf. But this is to change as the country will play host to the 2022 FIFA World Cup and therefore, much of the country’ s retail development is scheduled to open just before the sports event, which is expected to bring in a million visitors. |
buffers and mainly trades outside the sub-region, meaning its overall economic stability is not under direct threat from the cooling of GCC ties. But the economic impact of the political situation that Qatar is facing still remains to be seen.
What do we expect in days from now?
With an already subtle political situation and various counter measures being taken to resolve the same, it’ s still unclear what the future holds for Qatar. Though Saudi Arabia and its partners have escalated matters with Qatar significantly, it will take some more time for matters to fizzle down before they come to a consensus. But both Qatar and Saudi-led GCC members will need to find a common ground for these grievances which would result in a negative economic ramification for Qatar. It remains to be seen how the Gulf Crisis will be resolved, or if doesn’ t then what it would mean for Qatar, which was being considered a new‘ fashion heaven’ for international luxury brands …?
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