The retail market is becoming so congested in Dubai some malls should be redeveloped or torn down, warns Jones Lang LaSalle, a global property specialist.
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Craig Plumb, the company's head of research in the Middle East and North Africa, said about 30 per cent of malls in Europe were obsolete and Dubai was also in danger of reaching saturation point in the next few years.
"There will be a significant proportion of retail that needs to be repositioned, knocked over or a combination of the above," he said. "Some of this is just the maturing of the market. In the UK and Europe there's been lots of malls converted to other uses."
His warning comes on the back of news that the Al Habtoor Group is to demolish the Metropolitan Hotel, one of the oldest in Dubai, and redevelop the space next year.
Mr Plumb said some malls will eventually have to follow that lead.
Retail space has increased 60 per cent in Dubai since 2005, according to Jones Lang LaSalle, and the per capita mall space is almost double the level in Abu Dhabi, which has the second-highest rate in the Middle East. The rapid development of the retail and hospitality sectors has helped to elevate Dubai to a major global destination for shopping and tourism, but the speed of the expansion has also left some older developments behind.
This is particularly prevalent in retail where, following the success of Dubai Mall and Mall of the Emirates, many smaller, older players are having to quickly adapt.
Al Ghazal Mall, a shopping centre in Satwa, lies only a few kilometres from Dubai Mall and has been hit by falling numbers of visitors - and having to offer much-reduced rents - in the past few years.
The retail mix at Al Ghazal is being completely reworked, with fewer but bigger stores that serve the community, including a dentistry, a doctor's surgery, an eye specialist, a phone-repair shop and a Lebanese restaurant.
A Carrefour Market convenience store was added 18 months ago. "When you look at Dubai, it now has fantastic, huge shopping centres, so we thought 'how can we compete with those?'" said David Zlatarich, the head of property management at Colliers International, which leases Al Ghazal Mall. "We thought that we should turn it into a community-service centre, with retailers that are providing a service."
He said the revamped centre would be 100 per cent leased in the next few months.
On the contrary, in order to compete with the big regional malls, some of the older centres are actually increasing space, rather than repositioning stores or downsizing.
Al Ghurair Mall, built in 1981 and Dubai's oldest mall, is spending Dh2 billion (US544 million) in nearly doubling its size and adding a hotel.
BurJumanmall, meanwhile, is increasing its space by 25 per cent.
rjones@thenational.ae
Series info
Test series schedule 1st Test, Abu Dhabi: Sri Lanka won by 21 runs; 2nd Test, Dubai: Play starts at 2pm, Friday-Tuesday
ODI series schedule 1st ODI, Dubai: October 13; 2nd ODI, Abu Dhabi: October 16; 3rd ODI, Abu Dhabi: October 18; 4th ODI, Sharjah: October 20; 5th ODI, Sharjah: October 23
T20 series schedule 1st T20, Abu Dhabi: October 26; 2nd T20, Abu Dhabi: October 27; 3rd T20, Lahore: October 29
Tickets Available at www.q-tickets.com
Stat Fourteen Fourteen of the past 15 Test matches in the UAE have been decided on the final day. Both of the previous two Tests at Dubai International Stadium have been settled in the last session. Pakistan won with less than an hour to go against West Indies last year. Against England in 2015, there were just three balls left.
Key battle - Azhar Ali v Rangana Herath Herath may not quite be as flash as Muttiah Muralitharan, his former spin-twin who ended his career by taking his 800th wicket with his final delivery in Tests. He still has a decent sense of an ending, though. He won the Abu Dhabi match for his side with 11 wickets, the last of which was his 400th in Tests. It was not the first time he has owned Pakistan, either. A quarter of all his Test victims have been Pakistani. If Pakistan are going to avoid a first ever series defeat in the UAE, Azhar, their senior batsman, needs to stand up and show the way to blunt Herath.
MATCH INFO
Uefa Champions League, last 16, first leg
Ajax v Real Madrid, midnight (Thursday), BeIN Sports
What is blockchain?
Blockchain is a form of distributed ledger technology, a digital system in which data is recorded across multiple places at the same time. Unlike traditional databases, DLTs have no central administrator or centralised data storage. They are transparent because the data is visible and, because they are automatically replicated and impossible to be tampered with, they are secure.
The main difference between blockchain and other forms of DLT is the way data is stored as ‘blocks’ – new transactions are added to the existing ‘chain’ of past transactions, hence the name ‘blockchain’. It is impossible to delete or modify information on the chain due to the replication of blocks across various locations.
Blockchain is mostly associated with cryptocurrency Bitcoin. Due to the inability to tamper with transactions, advocates say this makes the currency more secure and safer than traditional systems. It is maintained by a network of people referred to as ‘miners’, who receive rewards for solving complex mathematical equations that enable transactions to go through.
However, one of the major problems that has come to light has been the presence of illicit material buried in the Bitcoin blockchain, linking it to the dark web.
Other blockchain platforms can offer things like smart contracts, which are automatically implemented when specific conditions from all interested parties are reached, cutting the time involved and the risk of mistakes. Another use could be storing medical records, as patients can be confident their information cannot be changed. The technology can also be used in supply chains, voting and has the potential to used for storing property records.
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Results
5pm: UAE Martyrs Cup (TB) Conditions Dh90,000 2,200m
Winner: Mudaarab, Jim Crowley (jockey), Erwan Charpy (trainer).
5.30pm: Wathba Stallions Cup (PA) Handicap Dh70,000 1,400m
Winner: Jawal Al Reef, Richard Mullen, Hassan Al Hammadi.
6pm: UAE Matyrs Trophy (PA) Maiden Dh80,000 1,600m
Winner: Salima Al Reef, Jesus Rosales, Abdallah Al Hammadi.
6.30pm: Sheikha Fatima bint Mubarak (IFAHR) Apprentice Championship (PA) Prestige Dh100,000 1,600m
Winner: Bainoona, Ricardo Iacopini, Eric Lemartinel.
7pm: Sheikha Fatima bint Mubarak (IFAHR) Ladies World Championship (PA) Prestige Dh125,000 1,600m
Winner: Assyad, Victoria Larsen, Eric Lemartinel.
8pm: Sheikh Zayed bin Sultan Al Nahyan Jewel Crown (PA) Group 1 Dh5,000,000 1,600m
Winner: Mashhur Al Khalediah, Jean-Bernard Eyquem, Phillip Collington.
Women’s World T20, Asia Qualifier
UAE results
Beat China by 16 runs
Lost to Thailand by 10 wickets
Beat Nepal by five runs
Beat Hong Kong by eight wickets
Beat Malaysia by 34 runs
Standings (P, W, l, NR, points)
1. Thailand 5 4 0 1 9
2. UAE 5 4 1 0 8
3. Nepal 5 2 1 2 6
4. Hong Kong 5 2 2 1 5
5. Malaysia 5 1 4 0 2
6. China 5 0 5 0 0
Final
Thailand v UAE, Monday, 7am
