LUXURY

RETAIL MARKET OVERVIEW DUBAI

February 2011

UNITED ARAB EMIRATES COUNTRY OVERVIEW

Fourth largest Arab League economy United Arab Emirates consist of seven emirates with capital Abu Dhabi President: Khalifa bin Zayed Al Nahyan Vice President: Mohammed bin Rashid Al Maktoum (ruler of Dubai) Land Mass: 83,600 sq. km. Popula_on: 5.5 million with 2.5% popula_on growth rate (2009) Currency: 3.67 AED/USD 8.1% of world oil reserves and 3.4% of world total gas reserves
EGYPT

GDP: US$199.8 billion with 2,6% nominal growth and GDP PPP US $40,200 (UAE 2010) Non-oil GDP growth is driven by transporta_on, nance, tourism, service and real estate sectors

LEBANON

SYRIA IRAQ KUWAIT BAHRAIN QATAR SAUDI ARABIA UNITED ARAB EMIRATES OMAN IRAN

JORDAN

YEMEN

DUBAI - SNAPSHOT
Dubai has emerged from the desert to become one of the most modern and luxurious ci_es in the world to live, visit and shop Despite of the nancial crisis the number of HNWI is expected to grow further at 10 % rate a year Citys retail industry has been one of the fastest growing and has become one of the worlds most desirable environments for investment and revenue genera_on Due to increasing public and private sector consump_on Dubais industry ver_cals (tourism, trade, banking, etc) are strong and are expected to boost retail industry CAGR further to impressive 13% (2010-2013) Aspira_onal behavior and preference for interna_onal luxury brands among expatriates, tourists and young locals alike is high and is strongly increasing by various shopping carnivals and events as well as rapid development of modern retail infrastructure Per capita consump_on of cosme_cs and fragrances in the UAE is one of the highest in the world

DUBAI - GENERAL
Dubai oers high standard, relaxed and pleasant lifestyle Low crime rate, developed infrastructure, clean streets and abundance of domes_c services creates a comfortable and safe environment Several diverse religious and ethnic groups co-exist in peaceful habita_on Local and foreign media is easily available Alcohol may be consumed at mul_ple restaurants, bars and clubs as well as at home Total Popula_on: 1,905,000 with 1,485,000 male (out of 4,975,593 in total UAE) 303,800 HNWI (6.2% of UAE total popula_on 2010) Dubais expat community 80% of total popula_on Highly akrac_ve for expats due to no income tax increased saving and a higher disposable income 56% of expats receive a disposable income of over US $3,000 per month

Dubai in 1995

Dubai in 2010

DUBAI - TOURISM
Tourism industry has been a key factor in developing Dubais economy and is highly connected to countrys GDP The UAE tourism industry achieved CAGR of 10.69% (1998-2008) In 2010 Dubai received around 10 million tourists From luxury tourism perspec_ve city akracts mostly Russians, Chinese, Indians, na_onals and expatriates from other GCC countries, Lebanese, Bri_sh, French and Germans Dubai houses around 560 hotels and despite of the worldwide hospitality decline in past years has globally compe__ve RevPar around US$200 (2010) Occupancy levels across hospitality market registered on average at 80% (2010) City is also home for over 100 ve star restaurants brands and mul_ple fashion clubs, fashion hotels and bars Over the years Dubai has become a top des_na_on to foreign visitors mainly for its luxurious lifestyle. Dubai hosts number of world known hotel brands, spas, interna_onal ne dining, great night life, service and number of akrac_ons such as Burj Khalifa, The Palm Jumeirah, The World, Ski Dubai, Dubai Aquarium, Dubai Mall and various tex_le, gold and spice souks

Hospitality

Fine Dining

Nightlife

DUBAI LUXURY RETAIL ENVIRONMENT

Dubai is seen as Shopping Capital of the Middle East Various shopping fes_vals such as Dubai Shopping Fes_val and Dubai Summer Surprises are major contributors to total retail sales Dubai houses 385 luxury brands and stores and hence Dubais luxury retail industry has become the primary trading hub in GCC with luxury retail sales growing average of 12% per year compared to 7% of the rest of the world (2009) Des_na_on malls remain to have the widest market appeal Dubai houses 25 malls with 5 more under construc_on Top ve luxury malls being Dubai Mall (worlds largest shopping mall), BurJuman Centre, Emirates Tower Boulevard, Mall of the Emirates and Wa Center Department stores include Bloomingdales, Galeries Lafayeke, Saks Fiph Avenue, Harvey Nichols and Salaam Department Store

DUBAI LUXURY RETAIL ENVIRONMENT (CONT)

Market indicators: Dubais retail sectors total spending passed US$ 7.6bn at the end of 2009 Dubais GLA has grown of approx. 263% (2006 to 2010) and amounted to 3.2 million square m (2010) Average rent of US$750 and premium rent of US$1,000 per annum per square m (2010) 93% occupancy rate overall with the major malls enjoying 100% occupancy (2010) In forthcoming years retail forthcoming developments include Mall of Arabia, Dubai Pearl Mall and Al Madina Mall increasing GLA even further
1600 1400 1200 1000 800 600 400 200 0 Dubai

Total Retail Space Availability 2010

m2 per 1000 people

Abu Dhabi

USA - Average

Europe - Average

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DUBAI LUXURY RETAIL PLAYERS

Al Tayer Group
Overview Geographical Reach

Founded in 1979 in the UAE, the Al Tayer Group is privately owned retail company with opera_ons in Automobile, Fashion, Cosme_cs & Perfume, Jewellery, Publishing, Contrac_ng and Engineering The company's consumer retail division, Al Tayer Insignia, is the largest luxury retailer in the Middle East with 36 luxury brands & 2 department stores in its porsolio and over 1,600 employees
Selected Brands - Fashion & Jewellery

Groups opera_ons extend beyond the UAE into twelve countries in total with Al Tayer Insignia being present in mul_ple Middle East countries including Bahrain, Kuwait, Oman and Qatar Fashion & Jewellery lines have around 90 outlets in total

Alexander McQueen Armani Balenciaga Bokega Veneta Dolce & Gabbana Pucci

Giuseppe Zanot Gucci Jean Paul Gaul_er Jimmy Choo Loro Piana Makhew Williamson

Moschino Ounass Sergio Rossi Stella McCarthey Thomas Pink Yves Saint Lauren

Asprey Azal Boucheron Bvlgari Damiani Pommelato 11

DUBAI LUXURY RETAIL PLAYERS

Bin Hendi
Overview Geographical Reach

Founded in 1974 in the UAE, Bin Hendi Enterprises LLC Bin Hendi is a privately owned retail company with opera_ons in the Fashion, Watches & Jewellery, Cosme_cs & Perfume, Hospitality and Fine Dining The Group has porsolio of over 75 world- renowned brands Addi_onally to retail sector Binh Hendis Baitu_ Designs LLC oer interiors design consultancy in the disciplines of retail & hospitality projects
Selected Brands - Fashion & Jewellery

Groups core opera_ons in the UAE extend beyond to other GCC countries and India Fashion & Jewellery and Furniture lines have around 40 outlets in total

Ar_oli Billionaire Brioni GF Ferre Hugo Boss Joseph

Miss Sixty Paul & Shark Shanghai Tang Zilli

De la Cour Franc Vila Graf Von Faber-Castell Goldvish Gra Jacob & Co

Mar_n Braun Navitec Nubeo Porsche Design Ulysse Nardin Welder 12

DUBAI LUXURY RETAIL PLAYERS

Chalhoub Group
Overview Geographical Reach

Founded in 1955 in Damascus, Syria, the Chalhoub Group today remains to be family owned conglomerate with a porsolio of over 280 luxury brands Chalhoub Group specializes in the retail, distribu_on and marke_ng of renowned brands within the sectors of Fashion, Beauty and Gips and employs a team of 5,800 people The Group is ac_vely involved with mul_ple projects in social responsibility and preserva_on of the environment elds
Selected Brands Fashion & Beauty

The Company has presence in 14 countries across the Middle East incl. the UAE, Kingdom of Saudi Arabia, Qatar, Oman, Kuwait, Jordan, Iraq, Iran, Lebanon and Yemen Chalhoub Group manages over 350 retail outlets in total

Berlu_ Bonpoint Carolina Herrera Celine Chris_an Dior Chris_an Loubou_n

D&G Dolce & Gabbana Dsquared2 Ermenegildo Zegna Fendi Lacoste

Louis Vuikon Marc Jacobs Mulberry Paul & Joe Paul Smith Ralph Lauren

Biothrem Faces Kors LOccitane Molton Brown Sephora 13

DUBAI LUXURY RETAIL PLAYERS

Paris Gallery Group
Overview Geographical Reach

Paris Gallery Group is the agship retail and The Group operates over 80 stores across the UAE, Saudi distribu_on division of Al Fahim Holdings, privately Arabia, Qatar and Bahrain owned diversied business holding The Group manages retail opera_ons of In 2009 announced expansion plans of 16 new stores will homegrown brands such as Paris Gallery Stores and increase Groups retail presence Watch Gallery as well as operates the franchises of to 30,524 m2 in total interna_onal brands 38 Paris Gallery Stores oer over 450 interna_onal brands of Cosme_cs & Fragrances, Accessories & Watches, Eyewear and Fashion Apparel
Selected Brands - Cosme_cs & Fashion & Accessories & Watches

Bobbi Brown Chanel Clarins Clinique Crme de la Mer Kanebo

Burberry Car_er ETRO Ferrari Roberto Cavalli Salvatore Ferragamo

Alexander McQueen Gina Missoni Pedro Garcia DKNY Givency

Baume & Mercier Chopard Chris_an Dior Fendi Hublot Harry Winston 14

DUBAI LUXURY RETAIL PLAYERS

Salam Group
Overview Geographical Reach

Salam Group established in 1952, belongs to The Group has regional presence in the UAE, Dubai and Abu Salam Interna_onal Investment Limited, Qatari Dhabi, in Qatar, Doha and in based publicly listed company Oman, Muscat Salam Group operates ve department store retail outlets carrying the latest Luxury and Designer In total Salam Group u_lizes over 20,000 square m of retail space Apparel, Jewellery & Accessories, Beauty & Cosme_cs, Home Furnishing and Photography Products The Group has over 50% of Qatar's Perfumes & Cosme_cs wholesale market
Selected Brands Fashion & Jewellery

7 For All Mankind Alice + Olivia Catherine Malandrino Class Roberto Cavalli Diesel Elie Tahari

Falliano GF Ferre Hugo Boss Hute Hippie Joseph Just Cavalli

Kenzo Paul & Joe Sister Paul & Shark Philipp Plein Polo Ralph Lauren Red Valen_no

Roccobarocco See by Chloe Theory Versace Yoana Baraschi Z Spoke 15

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DUBAI FUTURE TRENDS

Concept of Luxury is widely accepted in the UAE and is prominently featured in media, environment and lifestyle and hence the major key drivers for the further growth and sustainability of luxury retail industry in the UAE and Dubai are: Increasing popula_on Further growing economy Well developed infrastructure and large availability of retail space Rising number of regional players introducing & represen_ng niche brands on a smaller scale Increasing number of tourists especially from China and India

For further informa.on regarding UAE retail environment & insights and overviews please contact Luxury Movement, Management Consultancy, specializing in luxury industries within the Middle East and Emerging Asia. Within luxury retail sector we oer mul.ple services such as Luxury Branding, Luxury Business Development and Integrated Marke.ng Communica.on & PR that can be further customized and tailored to clients individual needs.

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