Majid Al Futtaim Group welcomes new era of regional retail FDI

• Group's Senior Vice President of Development shares views about new trend at Retail City 2008
• Highlights Middle East's ability to drive FDI regionally

The new trend is being driven by a growing retail sector in the Middle East that is estimated to reach $500bn in value by 2010*.

This is being driven by a growing population and disposable incomes, a thirst for brands and retail concepts, and more choices as the number of malls increases.

Speaking on the topic of "Driving Foreign Direct Investment into the local retail market" at Retail City being held at Dubai International Exhibition Centre from June 1 to 3, Reid highlighted that the traditional view of foreign direct investment is changing.

"The common view of FDI is a flow of capital from Western nations into this region's emerging markets. But in the retail sector, we have already evolved," he said.

"With the expertise developed in countries such as the UAE, there is now an ability for our successful retail groups to invest in other countries in the Middle East and beyond. With this success, and a current weakness in western economies, the FDI ball is now in our court," he added.

He outlined how the Majid Al Futtaim Group has recognised this trend and has firmly positioned itself on the front of the wave by developing market leading mixed use shopping and entertainment centres.

"There are countries in the region that are behind in retail terms but have enormous potential. Egypt for example has a large population concentrated in north-to-south population centres along the Nile; with this potential and proximity, there is now an opportunity for retail companies in the UAE, Kuwait and Bahrain to look at opportunities in countries such as Egypt, Oman, Saudi Arabia and others. The trend is for intra-regional flows of FDI that hasn't existed until now," Reid said.

The comments came as a result of an impressive period of growth for the Majid Al Futtaim Group, which has built two prominent malls in Egypt and another in Oman. Further shopping malls are under development in the UAE, Egypt, Saudi Arabia, Oman and Bahrain.