Is malls euphoria coming at a bad time?

Is Egypt’s euphoria with malls coming at a bad time? Mega malls opening in Egypt are coming at a bad time as high inflation slows down spending, argues Hossam Abougabal in a Middle East business intelligence piece. Abougabal writes that “living costs have increased drastically since November 2016, with the outlook for retail in the 2017 looking uncertain as prices continue to rise.” He cites Majid Al Futtaim’s (MAF) newly opened Mall of Egypt, its Almaza City Centre Mall which is due to open in 2019, Capital Mall which is launching at the end of 2017, and Madinaty Mega Mall, which is slated to open in early 2018. “Future supply is safe as Egypt’s economy looks to improve in the coming years. The shock of increased living costs will stabilise as incomes inevitably increase,” according to Abougabal. Opportunity lies in developing local brands, he says.