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Key criterion in assessing economic development

-Wooing global brands maximises commercial value of Gulf region’s business sectors

-UAE maintains regional lead in attracting world brands

The ability to attract world-famous brands is one of the key criteria for assessing economic development in a country. Within this perspective, the GCC economies can be classified among the most targeted by global brands in terms of their plans to expand and tap fresh markets.

Herein come the purchasing power, level of development and well-being of a country to represent the key drivers for global brands when coming to target viable markets.

In this regard, Al Mazaya Holding’s weekly report said that the region’s markets vary in terms of their ability to attract international brands, with the UAE having proved to be the region’s most active and world’s second best in wooing international brands.

According to available industry data, the UAE has attracted 63 new brands in one year. However, despite the progress recorded in e-commerce and the launch of digital platforms, the tools and mechanisms of direct shopping is still dominant, because such key requirements as product warranty and post-sale services still constitute an additional factor that ensure market momentum, with the UAE boasting a large number of world-class business centres, robust and modern infrastructure and fair growth rates.

Economic competition between world economies has over the past years taken on various tense trajectories, triggering off trade tensions between major powers in particular and in the global economy in general, said the report.

Al Mazaya Holding reported that competition is heightening at present among new world brands, with US tech companies topping the list of strongest best international brands, followed by Chinese companies, which own 11 brands among the top 30 during 2018.

On the global level, tech companies are the top ten brands, followed by telecommunications firms and then come banks and followed by automotive companies. This means that primary sectors are witnessing more competition and investment in digital innovation in addition to a growing trend towards the acquisition of foreign markets.

Al Mazaya’s report highlighted the importance of accelerating efforts to woo international brands to the real estate sector and other vital sectors, as they, along with their famous local counterparts, are driving demand for luxury properties, while stimulating the tourism and transport sectors and other shared platforms. They, said the report, enhance the feasibility and boost the expected returns of real estate investments.

The restaurant sector, added the report, has dominated the overall landscape in terms of leading brands in the region over the several recent years, with the region’s markets becoming preferred destinations for brands in the catering sector, which is witnessing an investment boom aimed at opening and expanding new branches across the region worth billions of dollars, therefore, leading to the creation of myriad job opportunities.

Al Mazaya Holding pointed out that international brands have a more efficient ability to evaluate target markets and their potential to expand. Varying pricing policies are adopted to ensure competitiveness, especially in less developed markets where demand for luxury goods is relatively less.

It is worth mentioning that growth rates, population growth, the level of development and diversity witnessed by the tourism sector as well as the income of target segments of the society, are all key factors that govern international brand expansion plans. Also, economic diversification strategies, as well as competitiveness indicators, play a key role in generating economic momentum and attracting world-famous plans.

The weekly report of Al Mazaya Holding affirmed that a number of markets and economies have maintained their attractiveness to international brands and still boast a fertile environment for these brands despite the marked improvement being achieved by local brands to build consumer confidence.

This, said the report, reflects the myriad growth opportunities the Gulf region abounds in and prove their ability to cope with the rapid pace of development and sophistication worldwide, which has reflected positively on increasing the overall value of brands in the region across all sectors by at least 10 per cent annually. Therefore, any significant growth in these brands’ values, internationally, is set to maximise the commercial value of relevant business sectors and earn them more competitiveness across international markets.