Dubai's Damas inks deal to run Tiffany shops

Dubai-based Damas has signed a memorandum of understanding to establish a joint venture with Tiffany & Co, one of the world's premier jewellers.

The deal will see Damas operating Tiffany & Co retail stores in the UAE and is the first partnership venture signed by the US-based luxury retailer anywhere in the world.

The proposed joint venture will be governed by a board of directors representing both Damas and Tiffany & Co and will be initially headed by the Ibrahim Belselah, chairman of Damas International, a statement said.

Belselah said: "The joint venture between Damas and Tiffany & Co will demonstrate the confidence that Tiffany & Co has placed in Damas; this being the first partnership venture of Tiffany & Co in the world."

Anan Fakhreddin, CEO of Damas International, added: "The MoU is the start of a great partnership as both companies with an outstanding heritage in the jewellery business would be working together to grow the business and achieve new heights.

"Furthermore, the partnership will also facilitate the latest innovations from Tiffany & Co. to reach our customers within a short time frame."

Tiffany & Co currently operates five stores in the UAE which are located in Dubai Mall, Mall of the Emirates, and Atlantis The Palm resort, in addition to the Marina Mall and Abu Dhabi Mall stores in Abu Dhabi.

Damas was forced into a restructuring in October 2009 after it was found that three brothers - Tawfique Abdullah, Tawhid Abdullah and Tamjid Abdullah - chairman, managing director and deputy managing director respectively - had made unauthorised withdrawals worth AED614m ($167.17m).

A cascade agreement, whereby the three would repay the owed amount over an agreed period through asset sales, was signed in May.

A debt restructuring worth $872m was signed with its 25 lenders, including Barclays and BNP Paribas, in March.

Damas currently operates around 300 stores distributed across 12 countries, most of which are located in the GCC region.

Tiffany & Co was founded in 1837 in New York, USA. The company has about 230 stores worldwide.