1. UAE Retail Market Overview
March 2013

2. 1 Retail Market - UAE

3. UAE Retail Space by Emirate – Q1 2013
Northern Emirates
12%
Abu Dhabi & Al Ain Dubai
33% 55%
 Total retail space in the UAE as of end Q1 2013 stood at 4.04 million sq m.
 The lion’s share of space exists in the Emirate of Dubai, representing 55% of the total
retail stock, followed by Abu Dhabi with a share of 33%.
 The Northern Emirates (comprising of Sharjah, Ajman, Ras Al Khaimah and Fujairah)
have a combined share of just 12%.

4. Retail Presence by Country
Global Rankings % of International Retailers
Country Global Rankings -2011
2012 Present
2 UAE 53.1% 2
10 Saudi Arabia 41.1% 11
14 Turkey 39.0% 14
12 Kuwait 40.2% 13
27 Bahrain 30.4% 27=
27 Qatar 30.4% 29
40= Egypt 23.0% 41
49 Morocco 18.4% 49
64= Oman 12.0% 64=
70 Iran 5.5% 70
72 Libya 4.0% 72
73 Algeria 1.5% 73
 Based on the CBRE survey, the UAE ranks second only to the UK based on the
number of international retailers present.
 The UK remains the country which attracts most international retailers, with 57% of
brands in the survey present in the country. However, the UAE is close behind on
53%.

5. 2 Retail Market - Dubai

6. Dubai Map

7. Dubai Retail Space Growth (1990 – Q1 2013)
2,500,000
2,215,219
2,000,000
GLA (sq m)
1,500,000
1,000,000
500,000
0
Prior to 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012
1990
 Until 1990, retail space in Dubai registered just 51,000 sq m, with much of this stock
concentrated in traditional souks, small community and neighbourhood style retail
centres.
 Mall based retail space started to increase from 1995 with the entry of Deira City Centre
and the Burjuman Centre. Total retail space currently measures around 2.2 million sq
m.

8. Dubai Mall Lease Rates
Line Shop Anchor
Shopping Mall Type
(AED/sq m/annum) (AED/sq m/annum)
Mall of Emirates 2,000 – 6,000 750 – 2,000
Deira City Centre 2,500 – 6,500 500 – 2,000
Mirdiff City Centre 2,000 – 4,500 400 – 1,600
Dubai Mall 3,000 – 5,000 1,000 – 2,000
Dubai Marina Mall 3,000 – 5,500 1,000 – 2,000
 Prime rental rates for new leases are now typically around AED 2,000 –
4,500, down from around AED 5,000 - 6,000 during the peak.
 Since late 2008, retail lease rates have fallen across all retail types.
However, declines have been less severe than other asset types, including
residential and offices.

9. Retail Mall Occupancy Rates
100%
99%
98%
96%
96% 96%
94% 94%
Occupancy (%)
92%
92%
88%
84%
80%
Dubai Mall Mall of the Mirdiff City Ibn Battuta Deira City Festival Dubai Marina
Emirates Centre Mall Centre Centre Mall
 Occupancy rates within major malls remain exceptionally high, typically over 90%.
However, the opening of new malls has impacted performance within smaller centres.
 The best occupied malls at this time are the Mall of Emirates and Deira City Centre.
 Higher vacancy rates are likely within non-mall based concepts, as retailers continue to
shift focus to high demand areas.

10. Retail Mall Footfall Figures (2012)
1,400 70
65
1,200 60
Annual Footfall (million)
1,000 50
Number of Stores
800 40
36
25
600 30
18 21
400 14 20
200 10
0 0
Dubai Mall Mall of the Mirdiff City Ibn Battuta Deira City Festival
Emirates Centre Mall Centre Centre
 Total footfall in Dubai Mall reached 65 million during 2012, up from around 54 million
during 2011 (this equates to 54,000 visitors per shop unit).
 The second busiest mall was Mall of Emirates with just over 36 million visitors during
2012.

11. Future Retail Supply (2013 – 2016)
600,000
500,000
503,506
400,000
GLA (sq m)
300,000
294,067
200,000
151,000
100,000
58,439
0
2013 2014 2015 2016 TOTAL
 Around 503,500 sq m of new retail GLA will be handed over in the Dubai market
during the period 2013 – 2016.
 This will increase overall retail supply from the current 2.2 million sq m up to over 2.7
million sq m by end 2016.

12. Major Existing Retail Developments
Timeline of delivery
Name of the
Deira City Centre Wafi City Ibn Battuta Mall
Development
Completion Date 1995 2001 2005
Location Port Saeed Oud Metha Sheikh Zayed Road
Retail Space (GLA sq
115,000 44,600 110,000
m)
Number of Units 370 350 270
Occupancy Rate1/ 97% 94% 90%
Weekly Footfall1/ 411,000 N/K 275,000
Note: 1. CBRE estimates

13. Major Existing Retail Developments
Timeline of delivery
Name of the Mall of the Emirates Festival Centre Dubai Outlet Mall
Development
Completion Date 2005 2007 2007
Location Al Barsha Umm Ramool Al Ain Road
Retail Space (GLA sq m) 230,500 200,000 65,000
Number of Units 520 600 240
Occupancy Rate1/ 99% 94% 89%
Weekly Footfall1/ 692,000 480,000 125,000

14. Major Existing Retail Developments
Timeline of delivery
Name of the Dubai Mall Dubai Marina Mall Mirdiff City Centre
Development
Completion Date 2008 2008 2010
Location Downtown Burj Khalifa Dubai Marina Mirdiff
Retail Space (GLA sq m) 350,300 31,500 196,000
Number of Units 1,200 160 430
Occupancy Rate1/ 91% 85% 96%
Weekly Footfall1/ 1,250,000 N/K 350,000

15. Major Upcoming Retail Developments
Timeline of delivery
Name of the
The Pointe Mall Agora Mall Palm Mall
Development
Completion Date 2015 2014/2015 2016
Location Palm Jumeirah Jumeirah Road Palm Jumeirah
Retail Space (GLA sqm) 136,000 21,100 160,000
Number of Units 195 N/K N/K

16. 3 Abu Dhabi - Retail Market

17. Abu Dhabi Map

18. Abu Dhabi Retail Space Growth (1990 – Q1 2013)
1,000,000
975,954
900,000
800,000
700,000
GLA (sq m)
600,000
500,000
400,000
300,000
200,000
100,000
0
1990199319941996199719981999200020012006200720082009201020112012 Q1
2013
 From a restricted historic supply picture, the retail offering in the capital has grown
significantly over the past five years to reach 976,000 GLA sq m.
 The highest increase in retail space was observed in 2010 with the soft opening of
Dalma Mall in Mussafah offering circa148,000 GLA sq m.

19. Mall Lease Rents
Shopping Mall Line Shop (AED/sq m/year)
Abu Dhabi Mall 2,800 – 3,500
Al Raha Mall 2,000 – 2,750
Al Wahda Mall 2,500 – 3,500
Dalma Mall 2,200 – 3,000
Khalidiya Mall 2,500 – 3,200
Marina Mall 2,800 – 3,500
Mazyad Mall 2,200 – 2,800
Mushrif Mall 2,500 – 3,200
 Retail lease rates within malls can obviously vary dependant on the retail type with
F&B units potentially seeing differing rates to standard in-line stores.
 Lease rates within the major malls are observed to range between AED2,800 –
3,500, although rents will vary dependant on factors such as unit sizes, type of
retailer, lease structure, etc.

20. Retail Mall Occupancy Rates
100%
100%
90% 95% 97% 95%
90%
80%
70%
Occupancy (%)
60%
50%
40% 45%
30%
20%
10%
0%
Abu Dhabi Mall Al Wahda Mall Dalma Mall Khalidiya Mall Marina Mall Mushrif Mall
 Retail space in Abu Dhabi City is close to full capacity, with occupancy rates
reaching around 97 - 100% percent within Abu Dhabi Mall and the Marina Mall.
 However, malls located off-island such as Al Raha Mall, Bawabat Al Sharq and
Dalma Mall are still suffering from low occupancy levels.

21. Future Retail Supply (2013 – 2015)
750,000
730,950
600,000
GLA (sq m)
450,000
392,400
300,000
150,000 196,150
142,400
0
2013 2014 2015 Total
 Retail space (GLA) within Abu Dhabi city is expected to increase from 976,000 sq m
in Q1 2013 to circa 1.7 million sq m by 2015.
 With rising retail supply, mall owners will see tighter competition and the demarcation
of quality retail space will become more apparent.

22. Retail Mall Footfall Figures (2012)
450 25
400
350 19.2 20
Annual Footfall (million)
17.5
300
Number of Stores
12.8 15
250
10.5 11.2
200
10
150
100 5
50
0 0
Abu Dhabi Mall Al Wahda Mall Khalidiya Mall Marina Mall Mushrif Mall
 By end 2012, total footfall in Marina Mall reached 18.7 million equating to roughly
46,750 visitors per shop unit.
 Abu Dhabi Mall also enjoys higher footfall amongst similar retail schemes with over
16.3 million visitors.

23. Major Existing Retail Developments
Timeline of delivery
Name of the
Abu Dhabi Mall Al Wahda Mall Khalidiya Mall
Development
Completion Date 2001 2007 2008
Location Tourist Club Area Airport Road Khalidiya
Retail Space (GLA sq
80,500 56,000 52,000
m)
Number of Units 220 450 160
Occupancy Rate1/ 100% 90% 95%
Weekly Footfall2/ 340,000 230,000 197,000

24. Major Existing Retail Developments
Timeline of delivery
Madinat Zayed
Name of the Development Mina Centre Marina Mall
Shopping Centre
Completion Date 1999 2000 2001
Location Madinat Zayed Mina Breakwater
Retail Space (GLA sq m) 26,500 35,000 164,000
Number of Units 450 50 400
Occupancy Rate1/ 90% 92% 97%
Weekly Footfall2/ n/a n/a 390,000

25. Major Existing Retail Developments
Timeline of delivery
Name of the
Dalma Mall Mushrif Mall Bawabat Al Sharq Mall
Development
Completion Date 2010 2011 2011
Location Musaffah Mushrif Baniyas
Retail Space (GLA sq
147,629 36,400 94,080
m)
Number of Units 400+ 300 423
Occupancy Rate1/ 45% 95% 45%
Weekly Footfall2/ n/a 216,000 n/a

26. Major Upcoming Retail Developments
Timeline of deliver y
Name of the
Capital Mall Central Market Paragon Bay Mall
Development
Completion Date 2013 2013 2013
Location Musaffah Khalifa Street Reem Island
Retail Space (GLA sq m) 60,000 48,000 60,000
Number of Units 406 170 120

27. Major Existing Retail Developments
Timeline of delivery
Deerfields Town
Name of the Development The Galleria Mina Plaza
Square
Completion Date 2013 2014 2014
Location Sowwah Square Mina Zayed Al Bahia
Retail Space (GLA sq m) 28,050 29,100 153,290
Number of Units 1101/ 45 220

28. Major Upcoming Retail Developments
Timeline of delivery
Name of the Development Yas Mall Reem Mall
Completion Date 2015 2016
Location Yas Island Reem Island
Retail Space (GLA sq m) 192,400 200,000
Number of Units 500 600

29. Entry Methods
 Franchise Agreement (Joint venture with major franchise
operation).
 Local Sponsor (51% / 49% - joint venture agreement with
another local company).
 Independent (no formal local partner).

30. Franchise Agreement
 Most common system for setting up retail operations in the UAE.
 Major players include Al Shaya, Al Thayer, Chaloub, Landmark and Azadea.
Positives
 Low risk (financially) with low initial capital expenditure for start up costs
(property, leasing and cap-ex), limited liability for daily operations and
management and no liability for the profit and loss of the business.
 Buying power of the franchise to minimise roll out costs.
 Instant cash flow and access to long-term residual income streams.
 Income calculated on the basis of gross sales and not necessarily profitability.
Negatives
 Potential dilution of the brand and misuse of IP (logos, trade marks, etc).
 Lack of control over brand identity and integrity.
 Lack of control over staff training.

31. Local Sponsor (Joint Venture)
 Only UAE nationals or corporations wholly owned by UAE nationals or those
with a UAE partner or sponsor are permitted to carry out operations.
 JV with major local sponsor (Dubai Holding, Emaar, Jumeirah Group, etc).
 Variations of JV structure (silent partner, fixed annual payment, profit share and
or a mix of).
Positives
 Benefit of the sponsor for negotiating, visa’s, preferential licensing, etc but
without the loss of control associated with a franchise agreement.
 If high profile Government entity - top cover and assurances ’get out of jail free
card’ if required. - Strength of partner but without full franchise control.
Negatives
 Still requires a 51% / 49% agreement (on paper but negotiation of terms
possible).
 Potential for some loss of control of brand and IP.

32. Independent
 Standalone brand without local sponsor.
Positives
 Maintain full ownership 100% structure and profits
 No requirement for 51% local ownership.
 Maintain full brand control.
 Potential to leverage Apple global brand without any restrictions.
Negatives
 No local bargaining power (although global brand strength should mitigate this).
 Higher financial risk with potential upfront expenditure required (property,
leasing and cap-ex).
 Potential issues in attaining Visa’s, licenses and general administrative duties.
 Untried model in other emirates and regional markets.