Swedish furniture giant is expanding in United Arab Emirates, with plans to open its biggest store in the Middle East on Abu Dhabi's Yas Island, near emirate's Formula 1 racetrack

Doron Peskin, 09.28.09, Ynet.

The Aldar Properties real estate company, which is traded in the Abu Dhabi Securities Exchange, announced it has signed an agreement with the al-Futtaim Group to build the largest IKEA store in the Middle East.
 
The Swedish furniture company's branch will be built on Yas Island, one of Aldar's leading projects.
 
Over $40 billion was invested in Yas Island, which will also serve as the host venue for the emirate's inaugural Formula 1 Grand Prix this November. The project's initiators believe its proximity to the new racetrack is an ideal location to attract buyers.
 
The IKEA store will be just one part of the island's retail offering, which will be centered greatly around a mega mall to be built on the island, and offer an array of clothing brands and well-known chains.
 
The al-Futtaim Group is one of the strongest family-owned commercial groups in the Gulf, and holds the franchise rights for the Swedish company. Omar Al-Futtaim, the group's vice chairman and CEO, said the Yas Island IKEA branch would be the biggest in the Middle East.
 
There are currently two IKEA stores operating in the United Arab Emirates, one at the Marina Mall in Abu Dhabi, and one in Dubai's Festival City. The Dubai store was inaugurated in 2005, and is the Swedish chain's largest store in the Middle East.
 
The Abu Dhabi expansion is part of a strategic move by IKEA, which is focusing on infiltrating newer markets, starting with the Middle East, China and Russia, as opposed to the saturated markets of Europe and the United States.
 
Doron Peskin is head of research at Info-Prod Research (Middle East) Ltd.

More articles from our staff

IPR Profile