Is the growth of real estate influencing the retail sector in terms of rents, etc?
There is no evidence that there is any relation between higher rents and retail sector growth. As it has been observed, the year 2006 witnessed an overall increase in rents but the year also recorded the highest-ever growth in the wholesale and retail sector. Therefore, higher rents have not affected retail sector growth. The recent fall of Omani rial due to the depreciation of US dollar has escalated the cost of imports, which in turn has caused inflationary trends. What do you think should be the pricing strategy of hypermarkets to counter the inflationary trends? Inflationary pressures are mainly due to the countrys dependence on imports from Europe, India, and other Asian countries for essential consumer items. The currencies of these countries have become stronger and therefore imports have become more expensive. Moreover, the freight cost has also gone up internationally due to the escalating fuel prices. However, the government is taking every step to ensure that the traders don
