Ikea plans to expand into Oman, Qatar

EXPANSION PLAN: Ikea's largest store in the ME is in Dubai Festival City Mall, it is now looking to move into Oman and Qatar.(Getty Images)

Ikea, the Swedish furniture chain, is planning to expand into Oman and Qatar with a new store in each country, the company’s operations and project manager in Dubai said on Monday.

The furniture and interiors sector has been affected by the current economic crisis, but not to the extent that it had curtailed expansion plans, said Siddarth Bhide in an interview with UAE daily Gulf News.

Besides expanding into to Oman and Qatar, Ikea was also planning to open new stores in Saudi Arabia, where it already operates in Riyad, Jeddah and Dammam, he added.

Ikea’s Abu Dhabi branch in the Marina Mall would also be expanded, bringing it up to the size of its largest Dubai store, Bhide revealed.

"Our business continues to grow, but at a lower rate than it did the past three years. In the current environment this is a proof of the strength of the Ikea brand and the loyalty of our customers," Bhide said.

The Gulf expansion announcement closely follows the appointment of new Ikea chief, Mikael Ohlsson, who will succeed the present CEO Anders Dahlvig in September this year.

The move is in line with Ohlsson’s plans for Ikea's focus to switch to emerging markets such as China and Russia, rather than contunue to grow in the already saturated markets of the US and Europe.

Ikea’s largest store in the Middle East is at the Dubai Festival City Mall, which was opened in November 2005.
 
However, Ikea started it’s UAE operations in 1991 on Zabeel Road, before moving to Deira City Centre in 1995.

"Ikea is unique in many aspects, one of them being the buying process that is different compared to other retailers," Bhide said.

"The Ikea design is unique in this market as it is simple, timeless, functional and affordable, thus acceptable to the majority of people," he added.

Currently, Ikea has a presence in 32 countries and operates a total of 296 stores.

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READERS' COMMENTS

IKEA in DOHA
Posted by Hilde on Monday 7 September 2009 at 08:57 UAE time


Does anyone know when Ikea will open its doors in Doha? I agree we also need an ACE Hardware here too!

I love ikea
Posted by M. hassan, Doha, Qatar on Saturday 18 July 2009 at 23:36 UAE time


I live in Qatar and this is the best news I have heard today, my new house will be ready soon and I was planning to go to Dubai to buy furniture from Ikea but my husband said it would be alot of trouble and things might break on the way to doha.. now I don't have to worry about anything, ecept how soon are you opening.. i hope its very soon and i hope you would open either in villagio or a place not to far from the airport area, and I also wish you would make it a big atore and include a section for Ace which is a great store that we need in Doha

Great News
Posted by Mayya, Muscat, Oman on Monday 11 May 2009 at 17:07 UAE time


I am a big fan of IKEA and drive all the way to Dubai just to shop at IKEA. I think this is a great move i am so looking forward to it.

Yes defintely store owners wont welcome IKEA because it will be thier biggest competitor. Stylish designs, afforadble prices and great customer service!

Ikea opening in Muscat is a great news!
Posted by hombil, Muscat, Oman on Monday 11 May 2009 at 15:53 UAE time


Today almost all the major chains operating in Dubai have their retail outlets in Muscat and it's about time Ikea decided to enter the Oman market. Muscat has two City Centres and we were hopeful that one of them would bring in Ikea, but it did not happen. Now we look forward to open its doors in Muscat soon and hope they open with their full range, incl. their famous restaurant!

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