London landmark heads to the Gulf

Iconic London toy store Hamleys will open its doors in three Gulf countries including Dubai, Kuwait and Saudi Arabia in the first quarter of 2009 in a franchise deal worth US$6m, Arabian Business can exclusively reveal.

Mohammed Al Ghussein, CEO of investment company Al Ghussein Global Investments (AGI), told Arabian Business that year-long negotiations had come to a "positive conclusion" with Hamleys agreeing to set up first in Dubai in 2009, taking up 33,000 sq ft in one of the flagship units in the under-construction Dubai Mall, followed by Kuwait and Saudi Arabia shortly afterwards. He added that AGI had paid a $3 millioin premium for the brand.

"This will be the first time Hamleys has left Europe and is a significant deal for the region," Al Ghussein said.

Hamleys opened its first foreign outlets in Denmark last year with three concessions. It also has five airport outlets in the UK - four at Heathrow and one at Stansted.

AGI has entered the deal in conjunction with Dauods Investments and estimates the Dubai store will turnover $9.5 million in revenues when it is opened in just over two years.

AGI's chief executive added that the company was looking to bring in two other "major" brand names, two in the food and beverage sector, and one in fashion. Ghussein told Arabian Business that one of the businesses in the pipeline was US household name Ben & Jerry's Ice Cream and that the company was "very close" to signing a deal.

"Retail is growing by over 25% a year in the Gulf and is proving extremely profitable," Ghussein added.

The Ghussein family has significant interests in the region in Dubai, Abu Dhabi and Al Ain and operates in various sectors including retail, financial services and real estate where it has recently acquired office space on the 57th floor of the Burj Dubai - soon to be the world's tallest building with 180 storeys.

In February, the group struck a landmark 10-year Middle East and North Africa franchise deal worth $5 million for California's famous West Coast Customs (WCC) company. WCC is the company behind MTV's hit show, ‘Pimp My Ride'. It will open a production centre in Dubai in September, WCC's first ever showroom and workshop outside the US.

The WCC team, whose celebrity clients include Shaquille O'Neal, Pamela Anderson, Mariah Carey and Kobe Bryant, will deliver its first Dubai-based custom-built car on July 20 to an unknown UAE sheikh.

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