Indian retailers are eyeing opportunities to expand in the Arabian Gulf, even amid the region’s economic slump because of lower oil prices.
Future Group, one of India’s biggest retail focused groups, headquartered in Mumbai, this month formed a joint venture with Oman’s Khimji Ramdas, a conglomerate, to make its debut internationally and open stores under its fbb clothing brand in the GCC. It will start with stores in Oman and the plan is to then expand to other countries in the GCC region, including the UAE.
Kishore Biyani, the billionaire retail tycoon behind Future Group, is confident that the company can turn the subdued economic situation to its advantage. The pricing of its children’s garments will start from about 85 rupees (just under Dh5), he says. It has sizeable ambitions. There could be scope to eventually open as many as 75 stores in the GCC, he adds.
“The markets are not at their best and that’s where the opportunity is,” says Mr Biyani, founder and chief executive, adding that he recognises that the Gulf region has taken a hit from lower oil prices. “When the markets are not good, there’s a churn of players which happens and there’s an opportunity for a new player come in. I think it’s always good to enter when the market is not at its best. The kind of price and fashion equation we can bring can be quite interesting. There is competition. We understand the competition.”
The company already operates in 27 out of India’s 29 states.
Mr Biyani says that “for us to get into the UAE and Middle East is a huge opportunity”.
“We thought of getting into a market, which is the Oman market, which is a very interesting market because there is a lot of ‘Indianess’ in that market. There are a lot of Indians there.”
The partners have committed 750 million rupees each to the joint venture, he said.
The GCC’s retail sales have suffered a knock-on effect in the past couple of years from the slump in crude prices, analysts say.
“As a result, the governments have been introducing austerity measures, which on one hand are curtailing the spending power of consumers, while on the other hand increasing the operating costs of retailers,” according to a recent report by Alpen Capital.
Still, there are some positive indicators. The GCC retail sector is projected to grow at an annual growth rate of 4.6 per cent to US$313.2 billion in 2021 from $250.5bn last year.
Toonz Retail, a Bangalore retailer which sells children’s clothes and other products for babies and children, has already opened two stores in Saudi Arabia and another one is soon to launch in the country, with aims to increase to a total of 10 shops in Saudi Arabia in the next two years. It has broader ambitions to expand across the Gulf region. Toonz is “exploring opportunities” for the brand to push into the UAE and Qatar, says Sharad Venkta, the managing director and chief executive of Toonz Retail.
He explains that the company is “currently gathering our learnings in KSA and plan to expand with more stores in this region”.
It is not an easy process.
“The GCC is a very mature market flooded with international brands across countries,” says Mr Venkta. “Thus competition is at its peak. But the market shows a lots of optimism for right product mix wherein if you catch up with understanding the customer taste and preference deeply, you can distinguish yourself from the competitors. This helps us work harder with our offering for the region.”
There are a number of factors working in the brand’s favour.
“The GCC has one of the fastest consumption of fashion and kids products,” he says. “The market conditions and the customer profile matches very well with our range and products line. Being a mature market consumption is very good. Plus, it has lot of NRIs [non resident Indians].”
Beyond the clothes market, Indian jewellers are also expanding in the GCC.
Malabar Gold & Diamonds, an Indian jewellery brand, has 90 stores in the region, about half of which are located in the UAE.
“We foresee more opportunity in the UAE and GCC region presently and hence we are in an expansion mode,” says Shamlal Ahamed, the managing director, international operations at Malabar Gold & Diamonds.
“GCC is a confluence of populations from all over the world which makes it a global business destination. Several untapped opportunities make the GCC region an attractive market for us. GCC has a varied clientele from the blue-collar workers to wealthy high net worth individuals and locals. NRIs comprise a key consumer segment for us across the GCC market.”
An increase in retail stores in the region could keep rents high, Alpen warns.
“With a large number of projects nearing completion, the region is set to witness an overhang of retail supply in the coming years,” according to the report. “The situation is more evident in Dubai, which has one of the highest per capita retail spaces in the world. Being a major cost component, high rents at shopping centres are affecting profitability of retailers.”
Future Group, through the joint venture with Khimji Ramdas, is expecting to sell 300 million garments across all its operations next year.
Mr Biyani says the Indian company’s move into the GCC could help it to reach African markets too.
Nailesh Khimji, a director at Khimji Ramdas, which has interests across consumer brands, logistics, and infrastructure, says that Oman will be the “test market” for the venture.
“Once we feel that Oman has achieved the KPIs (key performance indicators) that we expect, we are looking at expanding in the region, from all the Gulf countries,” says Mr Khimji. “This is the main goal behind the joint venture.”
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The specs
Engine: Four electric motors, one at each wheel
Power: 579hp
Torque: 859Nm
Transmission: Single-speed automatic
Price: From Dh825,900
On sale: Now
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The Baghdad Clock
Shahad Al Rawi, Oneworld
Dr Afridi's warning signs of digital addiction
Spending an excessive amount of time on the phone.
Neglecting personal, social, or academic responsibilities.
Losing interest in other activities or hobbies that were once enjoyed.
Having withdrawal symptoms like feeling anxious, restless, or upset when the technology is not available.
Experiencing sleep disturbances or changes in sleep patterns.
What are the guidelines?
Under 18 months: Avoid screen time altogether, except for video chatting with family.
Aged 18-24 months: If screens are introduced, it should be high-quality content watched with a caregiver to help the child understand what they are seeing.
Aged 2-5 years: Limit to one-hour per day of high-quality programming, with co-viewing whenever possible.
Aged 6-12 years: Set consistent limits on screen time to ensure it does not interfere with sleep, physical activity, or social interactions.
Teenagers: Encourage a balanced approach – screens should not replace sleep, exercise, or face-to-face socialisation.
Source: American Paediatric Association
PAKISTAN SQUAD
Pakistan - Sarfraz Ahmed (captain), Azhar Ali, Fakhar Zaman, Imam-ul-Haq, Babar Azam, Shoaib Malik, Mohammad Hafeez, Haris Sohail, Faheem Ashraf, Shadab Khan, Mohammad Nawaz, Mohammad Amir, Hasan Ali, Aamer Yamin, Rumman Raees.
The specs: 2018 Chevrolet Trailblazer
Price, base / as tested Dh99,000 / Dh132,000
Engine 3.6L V6
Transmission: Six-speed automatic
Power 275hp @ 6,000rpm
Torque 350Nm @ 3,700rpm
Fuel economy combined 12.2L / 100km
A State of Passion
Directors: Carol Mansour and Muna Khalidi
Stars: Dr Ghassan Abu-Sittah
Rating: 4/5
2025 Fifa Club World Cup groups
Group A: Palmeiras, Porto, Al Ahly, Inter Miami.
Group B: Paris Saint-Germain, Atletico Madrid, Botafogo, Seattle.
Group C: Bayern Munich, Auckland City, Boca Juniors, Benfica.
Group D: Flamengo, ES Tunis, Chelsea, Leon.
Group E: River Plate, Urawa, Monterrey, Inter Milan.
Group F: Fluminense, Borussia Dortmund, Ulsan, Mamelodi Sundowns.
Group G: Manchester City, Wydad, Al Ain, Juventus.
Group H: Real Madrid, Al Hilal, Pachuca, Salzburg.
Tax authority targets shisha levy evasion
The Federal Tax Authority will track shisha imports with electronic markers to protect customers and ensure levies have been paid.
Khalid Ali Al Bustani, director of the tax authority, on Sunday said the move is to "prevent tax evasion and support the authority’s tax collection efforts".
The scheme’s first phase, which came into effect on 1st January, 2019, covers all types of imported and domestically produced and distributed cigarettes. As of May 1, importing any type of cigarettes without the digital marks will be prohibited.
He said the latest phase will see imported and locally produced shisha tobacco tracked by the final quarter of this year.
"The FTA also maintains ongoing communication with concerned companies, to help them adapt their systems to meet our requirements and coordinate between all parties involved," he said.
As with cigarettes, shisha was hit with a 100 per cent tax in October 2017, though manufacturers and cafes absorbed some of the costs to prevent prices doubling.
UAE v Gibraltar
What: International friendly
When: 7pm kick off
Where: Rugby Park, Dubai Sports City
Admission: Free
Online: The match will be broadcast live on Dubai Exiles’ Facebook page
UAE squad: Lucas Waddington (Dubai Exiles), Gio Fourie (Exiles), Craig Nutt (Abu Dhabi Harlequins), Phil Brady (Harlequins), Daniel Perry (Dubai Hurricanes), Esekaia Dranibota (Harlequins), Matt Mills (Exiles), Jaen Botes (Exiles), Kristian Stinson (Exiles), Murray Reason (Abu Dhabi Saracens), Dave Knight (Hurricanes), Ross Samson (Jebel Ali Dragons), DuRandt Gerber (Exiles), Saki Naisau (Dragons), Andrew Powell (Hurricanes), Emosi Vacanau (Harlequins), Niko Volavola (Dragons), Matt Richards (Dragons), Luke Stevenson (Harlequins), Josh Ives (Dubai Sports City Eagles), Sean Stevens (Saracens), Thinus Steyn (Exiles)
COMPANY%20PROFILE
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Milestones on the road to union
1970
October 26: Bahrain withdraws from a proposal to create a federation of nine with the seven Trucial States and Qatar.
December: Ahmed Al Suwaidi visits New York to discuss potential UN membership.
1971
March 1: Alex Douglas Hume, Conservative foreign secretary confirms that Britain will leave the Gulf and “strongly supports” the creation of a Union of Arab Emirates.
July 12: Historic meeting at which Sheikh Zayed and Sheikh Rashid make a binding agreement to create what will become the UAE.
July 18: It is announced that the UAE will be formed from six emirates, with a proposed constitution signed. RAK is not yet part of the agreement.
August 6: The fifth anniversary of Sheikh Zayed becoming Ruler of Abu Dhabi, with official celebrations deferred until later in the year.
August 15: Bahrain becomes independent.
September 3: Qatar becomes independent.
November 23-25: Meeting with Sheikh Zayed and Sheikh Rashid and senior British officials to fix December 2 as date of creation of the UAE.
November 29: At 5.30pm Iranian forces seize the Greater and Lesser Tunbs by force.
November 30: Despite a power sharing agreement, Tehran takes full control of Abu Musa.
November 31: UK officials visit all six participating Emirates to formally end the Trucial States treaties
December 2: 11am, Dubai. New Supreme Council formally elects Sheikh Zayed as President. Treaty of Friendship signed with the UK. 11.30am. Flag raising ceremony at Union House and Al Manhal Palace in Abu Dhabi witnessed by Sheikh Khalifa, then Crown Prince of Abu Dhabi.
December 6: Arab League formally admits the UAE. The first British Ambassador presents his credentials to Sheikh Zayed.
December 9: UAE joins the United Nations.
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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
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
Killing of Qassem Suleimani
MATCH INFO
Asian Champions League, last 16, first leg:
Al Ain 2 Al Duhail 4
Second leg:
Tuesday, Abdullah bin Khalifa Stadium, Doha. Kick off 7.30pm
The Freedom Artist
By Ben Okri (Head of Zeus)
Which honey takes your fancy?
Al Ghaf Honey
The Al Ghaf tree is a local desert tree which bears the harsh summers with drought and high temperatures. From the rich flowers, bees that pollinate this tree can produce delicious red colour honey in June and July each year
Sidr Honey
The Sidr tree is an evergreen tree with long and strong forked branches. The blossom from this tree is called Yabyab, which provides rich food for bees to produce honey in October and November. This honey is the most expensive, but tastiest
Samar Honey
The Samar tree trunk, leaves and blossom contains Barm which is the secret of healing. You can enjoy the best types of honey from this tree every year in May and June. It is an historical witness to the life of the Emirati nation which represents the harsh desert and mountain environments
The specs
Engine: 3.8-litre V6
Power: 295hp at 6,000rpm
Torque: 355Nm at 5,200rpm
Transmission: 8-speed auto
Fuel consumption: 10.7L/100km
Price: Dh179,999-plus
On sale: now
