Danish toy manufacturer Lego will open up an office in Dubai towards the end of the year as it seeks to expand operations in the Middle East in Africa, according to CEO Niels Christiansen.
“The market there is already big, it is already growing,” he told reporters at a press conference on Tuesday. “We believe we can accelerate that by now putting people on the ground in Dubai who can develop the region further.”
Dubai is currently home to six Lego stores, with another located in Abu Dhabi’s Yas Mall as well as a number of outlets in Kuwait and Bahrain.
Christiansen’s comments came as Lego revealed that profits in 2017 fell to $1.3 billion from $1.56 billion in 2016. Additionally, revenues fell 8 percent to $5.83 billion from $6.31 billion the previous year.
“2017 was a challenging year and overall we are not satisfied with the financial results,” Christiansen noted. “In December, consumer sales grew in seven of our 12 largest markets and we entered 2018 with healthier inventories.
“In 2018, we will stabilise the business and invest to build sustainable growth in the longer-term,” he added.
According to Lego, while revenues declined in the North American and Europe, it grew by double digits in China, where the company also plans to expand.
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