Merchandising in MENA

In assessing the potential consumption of licensed merchandise in the Middle East and North Africa (as with all emerging markets), you're invariably left with a collection of good news/bad news valuations. The good news? According to a report from licensing agent the Arabian Licensing Company (ALC), 50% of the Middle East's population is under age 16, which is typically the group that is most desirous of licensed products. The bad news? Poverty. The most recent data published by the World Bank estimates that 22% of MENA's population lives on less than US$2 a day--that's roughly 62 million people. The bulk of the region's wealth (and therefore its main retail opportunities) lies in oil-rich countries like Saudi Arabia, the UAE, Kuwait, Bahrain, Oman and Qatar. Resource-poor nations such as Tunisia and Yemen present more of a merchandising challenge.