The Middle East and North Africa is home to some of the world’s most beautiful and productive shopping centres, with the number in the region to dramatically increase by 2015. However, in much of the region, the shopping centre industry is still in its infancy, providing opportunities for developers to tap into emerging markets.

Here, the Middle East Council of Shopping Centres’ CEO and vice-chairman, David Macadam, discusses opportunities for development in this region and what shape that development should take to be successful.

What are the opportunities for new shopping centre development in the Middle East and North Africa (MENA)?

With more than 360 million people living in the Middle East and North Africa (MENA), of which 60 per cent of the population is under the age of 25, tremendous potential exists for the development of new shopping centres. The rise of the middle class has created huge potential for retail consumption, with the increase in spending power and the desire for shopping as a recreational activity. New family units among the young demographic has also spurred growth of retail for household goods and services across the MENA region.

What cultural sensitivities should developers be aware of in order to succeed in the MENA region?

First, smoking is generally not permitted in shopping centres in the MENA region.

Second, “casual” describes the mode of dress in Western culture shopping centres, which is typified by quite liberal fashion. For example, a woman may wear shorts and a shirt that exposes her bare shoulders to the mall. This type of attire is not tolerated in the Middle East. Women in the MENA region dress conservatively when they go to the mall. Most wear long dresses, skirts and pants. If women wear shirts, they are loose-fitting and cover their shoulders and arms. Shorts, if worn, are also loose-fitting and sit below the knee. Tight T-shirts are also not tolerated for men, nor are bare shoulders. Shorts must also sit below the knee and be loose-fitting.

Many shoppers in the MENA region treat their visit to the mall as a time to dress-up. As a social setting, the mall can be a festive place where people do dress-up.

Is the MENA region poised for a second wave of development that focuses on neighbourhood and community centres as opposed to large enclosed malls?

The MENA region is a large area that encompasses many countries. Its population is also vast, with many income profiles. The next wave of shopping centre development will include both super regional malls and neighbourhood and community malls. Unlike Western society, community and neighbourhood malls in the MENA region must be enclosed due to the extreme summer heat.

When reviewing the various countries in the MENA region individually, and the number and type of malls under development, the construction of more community and neighborhood malls becomes important as the retail markets in cities mature. For example, Dubai in the United Arab Emirates (UAE) will have more community and neighborhood malls in the next phase of development than the UAE’s capital, Abu Dhabi, which will see both super regional and small neighborhood and community malls under construction.

David Macadam is CEO and vice-chairman of the Middle East Council of Shopping Centres (MECSC), the regional trade body representing the shopping centre industry in the Middle East and North Africa, and affiliated to the International Council of Shopping Centers (ICSC).