Middle East: results and expansion

Date : 25 August 2016

As Qatar-based Al Meera and Kuwait-based Sultan Center release H1 results and UAE-based The Fathima Group and Enoc announce expansion plans, we round up news from the region.

Fathima Group sets out expansion plans

The Fathima Group is set to invest AED270m (US$73.5m) in the opening of seven hypermarkets and the building of a new production plant. The company said spend AED200m (US$54.4m) on the opening of seven hypermarkets in the short term, with four to be added in the UAE, two in Saudi Arabia and one in India. The pace of expansion will add strongly to The Fathima Group’s existing portfolio of 25 stores, which are predominantly in its home market. The final AED70m (US$19.1m) will be invested in a food manufacturing facility in Dubai that will focus on the production of drinking water and processing spices, pulses and catering services.

Al Meera sees group sales rise 10.6% in H1

Al Meera said group sales rose 10.6% to QAR1.35 bn (US$370.7m) driven by expansion as it continued to grow its store presence across the country. To sustain its pace of growth Al Meera said that it was in process of ‘finishing the final stages for opening five stores out of the 14 announced [in 2015]’.

Enoc to add more Zoom convenience stores

Adding to the growing focus on smaller stores in the UAE, the Emirates National Oil Company (Enoc) has said it is aiming to open 30 Zoom convenience stores annually as part of a target of operating 500 stores by 2025. Enoc said that it was looking to respond to shopper demand for smaller stores and would aim to open stand-alone stores, on existing Enoc forecourts and franchise stores as well. Meanwhile, the company said that it was also looking to grow its presence in Saudi Arabia and was aiming to grow its presence to 27 stores over the next two years through the addition of 18 new locations.

The Sultan Center enjoys positive profit growth

The Sultan Center has said that it has seen a strong rise in its profits in Q2 and H1 2016 timeframes. The company said that its net profit rose 25% to KWD655,150 (US$2.2m) in the second quarter and by 15% in H1 to KWD1.1 million (US$3.6m) aided by pre-prevision operating profits and the sale of fixed assets.