Diageo, the global drinks maker with brands that include Guinness, Johnnie Walker and Smirnoff, says sales are surging in Abu Dhabi as a raft of new hotel openings boost demand.
The growth comes as the company, based in London, reported a 16 per cent increase in net sales across the MENA region, despite strict restrictions on the advertising and sale of alcohol in many countries.
The company, which is the world's largest producer of spirits, said it had a 28 per cent rise in demand for domestic sales in Abu Dhabi in the 2010 fiscal year compared with the previous year.
"We're very excited about Abu Dhabi," said Hugo Mills, the general manager in the Gulf region for Diageo.
"I think they are very clear about what they want to establish Abu Dhabi as, as a destination globally. I think we can safely say that will be a core market for us within the next eight to 10 years."
In a market such as Lebanon, the company has relative freedom to advertise. But in the GCC countries in which it is allowed to operate, there are many restrictions.
Diageo works with African and Eastern as its third-party distributor in the country.
"We strongly believe that the combination of global travel and Middle East and North Africa is set for growth," said Jane Ewing, the managing director of Diageo's Global Travel and Middle East business. "We think both of those elements of the business can double over the next five years."
Dubai Duty Free is the single largest airport retail operation in the world, with sales last year of US$1.14 billion (Dh4.18bn).
Travel retail sales at Dubai International Airport helped business during the downturn.
In the MENA region, about a third of the company's business is in travel retail and two thirds is domestic.
A key part of this involves luring travellers, who typically spend between three and four hours at an airport, into stores.
Diageo yesterday launched its Emporium store in Dubai International Airport, the first in the world, as it seeks further ways of promoting its brand there and boosting sales.
Mr Mills said domestic demand in Dubai was "starting to show signs of recovery".
rbundhun@thenational.ae
Europe’s rearming plan
- Suspend strict budget rules to allow member countries to step up defence spending
- Create new "instrument" providing €150 billion of loans to member countries for defence investment
- Use the existing EU budget to direct more funds towards defence-related investment
- Engage the bloc's European Investment Bank to drop limits on lending to defence firms
- Create a savings and investments union to help companies access capital
Sonchiriya
Director: Abhishek Chaubey
Producer: RSVP Movies, Azure Entertainment
Cast: Sushant Singh Rajput, Manoj Bajpayee, Ashutosh Rana, Bhumi Pednekar, Ranvir Shorey
Rating: 3/5
Navdeep Suri, India's Ambassador to the UAE
There has been a longstanding need from the Indian community to have a religious premises where they can practise their beliefs. Currently there is a very, very small temple in Bur Dubai and the community has outgrown this. So this will be a major temple and open to all denominations and a place should reflect India’s diversity.
It fits so well into the UAE’s own commitment to tolerance and pluralism and coming in the year of tolerance gives it that extra dimension.
What we will see on April 20 is the foundation ceremony and we expect a pretty broad cross section of the Indian community to be present, both from the UAE and abroad. The Hindu group that is building the temple will have their holiest leader attending – and we expect very senior representation from the leadership of the UAE.
When the designs were taken to the leadership, there were two clear options. There was a New Jersey model with a rectangular structure with the temple recessed inside so it was not too visible from the outside and another was the Neasden temple in London with the spires in its classical shape. And they said: look we said we wanted a temple so it should look like a temple. So this should be a classical style temple in all its glory.
It is beautifully located - 30 minutes outside of Abu Dhabi and barely 45 minutes to Dubai so it serves the needs of both communities.
This is going to be the big temple where I expect people to come from across the country at major festivals and occasions.
It is hugely important – it will take a couple of years to complete given the scale. It is going to be remarkable and will contribute something not just to the landscape in terms of visual architecture but also to the ethos. Here will be a real representation of UAE’s pluralism.
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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.