Arabian Gulf retail firms are increasingly looking to enter developed markets such as the US and Europe in search of greater economies of scale at a time when Western multinationals are cutting back their own expansion plans in emerging markets amid political and economic uncertainty.
"Many [local] retailers are considering these Western locations, even when they have not yet fully penetrated the regional market," Adel Belcaid, principal at retail consultancy A.T. Kearney told The National on the sidelines of the Middle East Retail Forum in Dubai on Tuesday. "They do it from a brand expansion point of view. It's good to be there [in the West], and many of these companies' founders have spent time in these locations so they want to build on their success and expand somewhere else where they feel comfortable with that other geography."
A.T. Kearney’s 2017 Global Retail Development Index published in June found that the world’s largest retailers are struggling to manage complex operations amid political instability and disruptive structural changes such as the rise of e-commerce. At the same time, however, local and regional firms are gaining ground as governments pave the way for retail and make it easier for everyone, not just the global giants, to enter new markets.
UAE-based food & beverage (F&B) delivery outfit Freedom Pizza is in talks with investors over plans to set up five stores in the UK within the next 18 months, its chief executive told The National. In parallel Dubai's Al Samadi Retail – which operates regional franchises for Western brands such as the Body Shop – plans to open a store in London and will expand to Paris next.
Kamal Osman Jamjoom (KOJ) Group, the Dubai and Saudi Arabia-based retail holding company, said it is eyeing expansion in cities across the US, among other markets.
Freedom Pizza, founded in 2015, is in talk to open in the UK, “in a city that is not London”, Ian Ohan said “For the past 18 months we have been studying the UK market and have a tremendous amount of in-depth knowledge of our competitors and their sales, which has really informed our development strategy,” Mr Ohan said.
The company prefers to open a cluster of five stores to achieve ‘proof of concept’, he said. "One store does not fully demonstrate success or otherwise – in an area that makes sense...We are looking at opening in around 18 months’ time and would anticipate a 9 to 12 month break-even period [in those new stores].”
____________
Read more:
UAE consumers to bear some of VAT burden on food
Delivery firms add to pressure on UAE’s food and beverage sector
____________
Freedom Pizza owes part of its success to a policy that is against using third party delivery firms – which typically slashes profits by up to 30 per cent, Mr Ohan said.
“We will never use third party delivery [in the UAE] and we intend to replicate that in the UK,” he said.
Mr Belcaid said the consultancy is seeing start-up players and other home-grown regional brands going global just at a time when large multinationals are taking a break and weighing the situation.
Ebreheem Al Samadi, the chief executive of Al Samadi Group, told the forum his firm recently closed a deal to open up a store in Knightsbridge – a top shopping destination in London – and is eyeing an outlet in Paris next with a view to entering the US in the future.
“Personally I think the West – US, Europe – is where we would look to expand, because the retail concepts we have in the Middle East are far more relevant than some of the retail concepts they have in developed markets,” said Stephen Holbrook, board member and clothing divisional director at KOJ. “Rather than come to us, I want to go to them.”
KOJ aims to double its revenues in the next five years and in some cases is looking to enter markets via digital channels, without traditional brick and mortar stores.
As the digital age gains traction in the Middle East, the GCC e-commerce market is set to grow four-fold from US$4 billion to US$20bn in 2020, according to a 2016 A.T. Kearney report. However, Mr Belcaid said that forecast was conservative and the firm has revised its outlook for the regional e-commerce market which will be released next month.
Internet retail makes expansion into developed markets easier for regional players, Mr Belcaid said.
“E-commerce makes it even more global. So it’s almost a level playing field. If you have a new concept and can address customer experience in the right way, entice consumers, then you can have a go – test the concept via e-commerce and it that prove successful then invest in it seriously.
“It’s all about innovation: bringing a concept that clicks and the sky is the limit.”
ICC Women's T20 World Cup Asia Qualifier 2025, Thailand
UAE fixtures
May 9, v Malaysia
May 10, v Qatar
May 13, v Malaysia
May 15, v Qatar
May 18 and 19, semi-finals
May 20, final
The National's picks
4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young
Dust and sand storms compared
Sand storm
- Particle size: Larger, heavier sand grains
- Visibility: Often dramatic with thick "walls" of sand
- Duration: Short-lived, typically localised
- Travel distance: Limited
- Source: Open desert areas with strong winds
Dust storm
- Particle size: Much finer, lightweight particles
- Visibility: Hazy skies but less intense
- Duration: Can linger for days
- Travel distance: Long-range, up to thousands of kilometres
- Source: Can be carried from distant regions
MISSION: IMPOSSIBLE – FINAL RECKONING
Director: Christopher McQuarrie
Starring: Tom Cruise, Hayley Atwell, Simon Pegg
Rating: 4/5
How to protect yourself when air quality drops
Install an air filter in your home.
Close your windows and turn on the AC.
Shower or bath after being outside.
Wear a face mask.
Stay indoors when conditions are particularly poor.
If driving, turn your engine off when stationary.
What are the main cyber security threats?
Cyber crime - This includes fraud, impersonation, scams and deepfake technology, tactics that are increasingly targeting infrastructure and exploiting human vulnerabilities.
Cyber terrorism - Social media platforms are used to spread radical ideologies, misinformation and disinformation, often with the aim of disrupting critical infrastructure such as power grids.
Cyber warfare - Shaped by geopolitical tension, hostile actors seek to infiltrate and compromise national infrastructure, using one country’s systems as a springboard to launch attacks on others.
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
Ain Issa camp:
- Established in 2016
- Houses 13,309 people, 2,092 families, 62 per cent children
- Of the adult population, 49 per cent men, 51 per cent women (not including foreigners annexe)
- Most from Deir Ezzor and Raqqa
- 950 foreigners linked to ISIS and their families
- NGO Blumont runs camp management for the UN
- One of the nine official (UN recognised) camps in the region
Volvo ES90 Specs
Engine: Electric single motor (96kW), twin motor (106kW) and twin motor performance (106kW)
Power: 333hp, 449hp, 680hp
Torque: 480Nm, 670Nm, 870Nm
On sale: Later in 2025 or early 2026, depending on region
Price: Exact regional pricing TBA
KILLING OF QASSEM SULEIMANI
More from Neighbourhood Watch:
Fire and Fury
By Michael Wolff,
Henry Holt
From Zero
Artist: Linkin Park
Label: Warner Records
Number of tracks: 11
Rating: 4/5
Killing of Qassem Suleimani
WIDE%20VIEW
%3Cp%3EThe%20benefits%20of%20HoloLens%202%2C%20according%20to%20Microsoft%3A%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EManufacturing%3A%3C%2Fstrong%3E%20Reduces%20downtime%20and%20speeds%20up%20onboarding%20and%20upskilling%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EEngineering%20and%20construction%3A%3C%2Fstrong%3E%20Accelerates%20the%20pace%20of%20construction%20and%20mitigates%20risks%20earlier%20in%20the%20construction%20cycle%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EHealth%20care%3A%3C%2Fstrong%3E%20Enhances%20the%20delivery%20of%20patient%20treatment%20at%20the%20point%20of%20care%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EEducation%3A%3C%2Fstrong%3E%20Improves%20student%20outcomes%20and%20teaches%20from%20anywhere%20with%20experiential%20learning%3C%2Fp%3E%0A
Specs
Engine: Dual-motor all-wheel-drive electric
Range: Up to 610km
Power: 905hp
Torque: 985Nm
Price: From Dh439,000
Available: Now
COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
The five pillars of Islam
Specs
Engine: 2-litre
Transmission: Eight-speed automatic
Power: 255hp
Torque: 273Nm
Price: Dh240,000
Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
Zayed Sustainability Prize
Mohammed bin Zayed Majlis
David Haye record
Total fights: 32
Wins: 28
Wins by KO: 26
Losses: 4
More coverage from the Future Forum
Killing of Qassem Suleimani
UK's plans to cut net migration
Under the UK government’s proposals, migrants will have to spend 10 years in the UK before being able to apply for citizenship.
Skilled worker visas will require a university degree, and there will be tighter restrictions on recruitment for jobs with skills shortages.
But what are described as "high-contributing" individuals such as doctors and nurses could be fast-tracked through the system.
Language requirements will be increased for all immigration routes to ensure a higher level of English.
Rules will also be laid out for adult dependants, meaning they will have to demonstrate a basic understanding of the language.
The plans also call for stricter tests for colleges and universities offering places to foreign students and a reduction in the time graduates can remain in the UK after their studies from two years to 18 months.
Tips to keep your car cool
- Place a sun reflector in your windshield when not driving
- Park in shaded or covered areas
- Add tint to windows
- Wrap your car to change the exterior colour
- Pick light interiors - choose colours such as beige and cream for seats and dashboard furniture
- Avoid leather interiors as these absorb more heat
Crazy Rich Asians
Director: Jon M Chu
Starring: Constance Wu, Henry Golding, Michelle Yeon, Gemma Chan
Four stars
What is blockchain?
Blockchain is a form of distributed ledger technology, a digital system in which data is recorded across multiple places at the same time. Unlike traditional databases, DLTs have no central administrator or centralised data storage. They are transparent because the data is visible and, because they are automatically replicated and impossible to be tampered with, they are secure.
The main difference between blockchain and other forms of DLT is the way data is stored as ‘blocks’ – new transactions are added to the existing ‘chain’ of past transactions, hence the name ‘blockchain’. It is impossible to delete or modify information on the chain due to the replication of blocks across various locations.
Blockchain is mostly associated with cryptocurrency Bitcoin. Due to the inability to tamper with transactions, advocates say this makes the currency more secure and safer than traditional systems. It is maintained by a network of people referred to as ‘miners’, who receive rewards for solving complex mathematical equations that enable transactions to go through.
However, one of the major problems that has come to light has been the presence of illicit material buried in the Bitcoin blockchain, linking it to the dark web.
Other blockchain platforms can offer things like smart contracts, which are automatically implemented when specific conditions from all interested parties are reached, cutting the time involved and the risk of mistakes. Another use could be storing medical records, as patients can be confident their information cannot be changed. The technology can also be used in supply chains, voting and has the potential to used for storing property records.
House-hunting
Top 10 locations for inquiries from US house hunters, according to Rightmove
- Edinburgh, Scotland
- Westminster, London
- Camden, London
- Glasgow, Scotland
- Islington, London
- Kensington and Chelsea, London
- Highlands, Scotland
- Argyll and Bute, Scotland
- Fife, Scotland
- Tower Hamlets, London
How has net migration to UK changed?
The figure was broadly flat immediately before the Covid-19 pandemic, standing at 216,000 in the year to June 2018 and 224,000 in the year to June 2019.
It then dropped to an estimated 111,000 in the year to June 2020 when restrictions introduced during the pandemic limited travel and movement.
The total rose to 254,000 in the year to June 2021, followed by steep jumps to 634,000 in the year to June 2022 and 906,000 in the year to June 2023.
The latest available figure of 728,000 for the 12 months to June 2024 suggests levels are starting to decrease.