An amazing surge in the sales of cosmetics, perfumes and toiletries in the Middle East have opened doors for many producers worldwide. According to official statistics sales for these products reached US$2,1 bn last year with all markets growing spectacularly, making the industry one of the largest and fastest growing in the world, with growth rates of some 19% regionally for 2007. The demand for cosmetics and toiletries in die Gulf markets are largely due to the fast-growing international demand, as well as the fact that some 50% of the region’s population are younger than 20 and 60% proves younger than 25 years old – the main target for these products.

The UAE's ultimately central location makes it a commercial portway to the rest of the Middle East, Africa, India, former CIS countries and Asia. This strategic location also provides a superb business location for buyers, suppliers, importers and exporters alike. To this one can add the rapid growth of developments and population, accompanied by a vibrant and sophisticated market requirement. Abu Dhabi, being the capitol of the Emirates is the natural nerve centre of this region, connecting the city with more direct flights to and from the rest of the Middle East than its sister Dubai.

The TRIQ Beauty Index 2006 foresaw a 9.5% growth worldwide, and regionally Africa and the Middle East topped the ranks at a staggering 17.2% increase compared to 13.7% in Latin America, 10.8% for Greater Europe, 7.1% for Asia Pacific and a decline of -2.7% for North America

High levels of disposable income, aggressive marketing strategies, affinities towards luxury brands and the very nature of the demographics of the region are all factors which have resulted in this extremely fertile market, with the average personal expenditure amounting to US$334.Another important factor contributing to this rapid growth rate in the industry is the annual 50% increase in shopping mall space and the 30% annual increase in retail space dedicated to cosmetic and beauty products over the last three consecutive years.  Also to be noted is the region’s unique climate which places higher demands on the skin, rapid increase in male grooming trends and flourishing halal cosmetic market.

The demand for cosmetics and toiletries in the Gulf markets are largely driven by not only the fast-growing international demand, but also the fact that some 50% of the region’s population are younger than 20 and 60% proves younger than 25 years old – the main target for these products.

In the UAE alone, the cosmetics and personal care industry was valued at over US$414million in 2006, according to Euromonitor International.This is not surprising when one takes note of the country boasting one of the highest annual GDP per capita worldwide at US$49700 in 2006.  Further reasons for this include the boom in tourism experienced, with nearly 7million tourists visiting the country annually and the fact that 80% of its population is expatriate, these often lured to the region for its tax-free lucrative lifestyle, once again resulting in high levels of disposable incomes and an increase in demand for associated luxury and cosmetic products.

It is estimated that there are some 5 000 beauty and related salons within the UAE alone and throughout the GCC it is further thought that there are in excess of 50,000. In addition the UAE boasts some 3 000 specific hair salons with an estimate of around 30,000 region wide.

The GCC states comprising of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE now have a combined GDP that would place them amongst the world’s largest economies. Many of these GCC economies have doubled over the past 5 years. Abu Dhabi’s GDP alone nearly touched $100 billion in 2006, rising 21.7% at current prices over the previous year.

Probably the most strategic advantages of Abu Dhabi is the proximity it offers investors to the world’s fastest growing regions namely, Asia, Europe and Africa. Collectively these regions comprise over 3.2 billion people with a collective GDP in excess of $18 trillion, thus, forming an explosive vault of economic and trading activities, featuring the world’s most populous and growth-hungry economies – China and India - as well as other oil-rich countries such as Russia and of course the rest of the Middle East.

A political system of hereditary rule in the emirate of Abu Dhabi and throughout the United Arab Emirates ensures that its economic agenda are broadly insulated from political issues. It’s geographic location isolates itself from the Middle Eastern political hotspots such as Iraq, Israel and Lebanon. The UAE Is renown for its forward-looking economic policies, which have secured the confidence of its Middle Eastern neighbors as well as those of numerous Western countries. Long-time investors in Abu Dhabi include multinational companies which are headquartered in the US, Germany, Canada, UK, France, Switzerland and Australia, amongst others. The United Arab Emirates law abiding community and culture is evidenced in the zero crime levels even in inner city areas such as Abu Dhabi.

The constant increase in population and tax-free incomes has resulted in an increased demand in retail space and development. This becomes evident when observing the annual 50% increase in shopping mall space in the Gulf alone. Current estimates see a spend of US$26 billion in the construction of retail space alone. This is set to significantly increase with new hotels coming on-line and the increase in air travel – the UAE alone will have some 100billion square feet of retail space by 2012. Dubai is set to further capitalize on this growth as it is firmly established as the main trading hub for the entire Middle East, North Africa and Indian sub continent markets.

Beauty Vision will provide your business with direct access to this burgeoning market place.