Retail

Driven by rapid urbanisation, the influx of the expatriate workforce, and a rising population of the young and affluent, Kuwait’s retail industry has grown dramatically over the past 10 years. High GDP per capita and the growing popularity of modern retail concepts and formats have also helped to position the country as a major hub for global luxury brands, earning Kuwait City a ninth place ranking among the top cities worldwide for retailing in property consultancy JLL’s 2016 “Destination Retail” report. However, after several years of rapid growth, subdued consumer confidence somewhat slowed momentum in the sector in 2015-16. Between government reductions in expenditure, demographic changes within the expatriate community and inflated commodity prices, the market is down across most classes and categories. However, in spite of this, a wide and growing array of international retailers are expected to level out the market ahead of another retail boom over the medium to long term.