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Bahrain Retail Report Q2 2012 Published: April 2012

No. of Pages: 71

Price: US$1175

BMI’s Q212 Bahrain Retail Report forecasts that the country’s retail sales will rise from an expected BHD0.59bn (US$1.56bn) in 2012 to BHD0.80bn (US$2.11bn) by 2016, boosted by a growing interest in Western styles of retailing and a steady rise in disposable incomes. However, this assumes that the ongoing political crisis that has weighed on the country's short-term economic outlook is resolved over the medium to long term. Bahrain’s nominal GDP in 2012 is forecast to be US$23.33bn, rising to US$31.77bn in 2016. Real GDP growth is expected to be 3.4% in 2012, up from just 1.9% in 2011. Average annual GDP growth of 4.6% is predicted by BMI between 2012 and 2016. Statistics from the Ministry of Culture and Information’s tourism affairs division show that tourist arrivals rose by an annual average of 10-15% over the past three years. In 2007, Bahrain attracted 5.5mn tourists, 4.9mn of them from other Gulf Cooperation Council (GCC) member countries. However, Bahrain Chamber of Commerce and Industry (BCCI) tourism committee chairman Nabeel Kanoo stated in February 2012 that Bahrain’s hotels and tourism businesses have suffered a 40% drop in revenue over the past year. The chairman believes that unfair reporting and ‘misinformation’ by foreign journalists is harming Bahrain’s tourism industry, resulting in cruise cancellations. The annual Formula One (F1) Grand Prix in Sakhir has generated hundreds of millions of dollars in revenue since it became a fixture on the racing calendar in 2004, and its cancellation in 2011 undoubtedly had a knock-on effect on retail sales. However, its reinstatement on the 2012 F1 calendar – albeit as the fourth race of the season rather than the opener – is good news for the retail sector. In 2005, 71.2% of the Bahraini population was described by the UN as economically active, with 40.7% in the 20-44 age range crucial for retail sales. In 2010, 72.7% of the population was estimated to be economically active but the proportion of those in the 20-44 age band fell by 39.9%. The very high level of urbanisation in Bahrain is an important factor. In 2005, more than 90% of the population was classified by the UN as urban and this rose to an estimated 91% in 2010. About 89% of the populations live in the cities of Manama and Muharraq. Retail sub-sectors that are predicted to show strong growth over the forecast period include automotives, with sales forecast to rise from an expected 51,146 units in 2012 to 59,460 units by 2016. However, 2011 was difficult, with H111 sales down by 5070% on the same period a year earlier, according to Gulf News. With the Bahraini consumer electronics market well positioned to function as an electronics trading hub, particularly between India and the Far East, sales are predicted to increase from an expected US$667mn in 2012 to US$837mn by the end of the forecast period. Over-the-counter pharmaceutical sales are forecast to rise from US$0.03bn in 2012 to US$0.04bn by 2016.

Retail Sales in Bahrain Table Of Contents Executive Summary SWOT Analysis Bahrain Retail Business Environment SWOT Bahrain Political SWOT Bahrain Economic SWOT


Market Overview Current Trends Key Players Industry Forecast Scenario Consumer Outlook Retail Growth Outlook Table: Bahrain Retail Sales Indicators, 2009-2015 Table: Retail Sales Breakdown By Key Segment, 2012f Macroeconomic Outlook Regional Retail Outlook Table: Middle East And Africa Retail Trends, 2009-2016 Table: Middle East And Africa Regional Retail Sales, 2009-2016 (US$bn) Table: % Of Regional Retail Sales, 2009-2016 Current Trends Risk/Reward Ratings Middle East And Africa Risk/Reward Ratings Table: Middle East And Africa Retail Risk/Reward Ratings Bahrain’s Retail Ratings Limits To Potential Returns Risks To Realisation Of Returns Mass Grocery Retail Bahrain Food Industry SWOT Market Overview Industry Forecast Scenario Table: Mass Grocery Retail Sales By Format – Historical Data & Forecasts, 2009-2016 Industry Developments Consumer Electronics Bahrain Consumer Electronics Market SWOT Market Overview Computers Table: PC Sales, 2008-2016 AV Table: AV Sales, 2008-2016 Mobile Handsets Table: Mobile Communications, 2008-2016 Industry Forecast Scenario Table: Consumer Electronics Overview, 2008-2016 Industry Developments Automotives Bahrain Auto Industry SWOT Market Overview Table: Bahrain Autos Sector – Key Players Industry Forecast Scenario Table: Bahrain – Autos Industry, 2010-2016 Industry Developments BMI Methodology How We Generate Our Industry Forecasts Sources


Bahrain Retail Report Q2 2012