Chalhoub Group expands Saudi operations with new fulfillment hub and store 

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Updated 06 February 2025
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Chalhoub Group expands Saudi operations with new fulfillment hub and store 

Chalhoub Group expands Saudi operations with new fulfillment hub and store 

RIYADH: Chalhoub Group is strengthening its presence in Saudi Arabia by launching a regional fulfillment hub in Riyadh and inaugurating a new luxury store in Solitaire Mall. 

The company’s latest investments underscore its commitment to the Kingdom’s evolving retail landscape, in line with its long-term expansion strategy. 

The new fulfillment center, located in the Riyadh free zone near King Khalid International Airport, is designed to boost the company’s e-commerce and distribution operations, serving Saudi Arabia and the broader region.

In an interview with Arab News during the Retail Leaders Circle Global Forum 2025 in Riyadh, Patrick Chalhoub, executive chairman at Chalhoub Group, highlighted the facility’s strategic role. 

“It’s a fulfillment center, which is aiming to really service both our digital and e-commerce drive, our distribution in Saudi Arabia but also beyond Saudi Arabia from Riyadh, gradually, to be really a hub of distribution,” he said.

The hub is expected to process up to 100 million luxury products at full capacity, leveraging advanced technology to optimize logistics and improve delivery speed. 

“The aim, like in e-commerce, is to be able to fulfill in Riyadh within two hours, in Saudi Arabia within 24 hours, outside Saudi Arabia in less than three days,” Chalhoub stated. 

“This will be and is the heart of the market, so it’s better to be based in the heart of the market and not be based outside and servicing the market,” he remarked, referring to the Kingdom as the center of luxury retail. 

Chalhoub Group has been present in the Saudi market since 1959 and has witnessed significant policy and economic shifts over the decades, the executive chairman highlighted.

The company now employs approximately 5,000 people in the Kingdom, with 78 percent of its workforce being Saudi nationals and 74 percent women. 

As part of its retail expansion, Chalhoub Group is also set to open a new store in Solitaire Mall in Riyadh on Feb. 12. 

The store is designed to deliver an enhanced shopping experience, reflecting the company’s focus on innovation in retail. 

Chalhoub highlighted that consumer behavior in the Middle East differs significantly from other regions, driven by cultural and social dynamics. 

Unlike Western markets, where individual preferences often dictate shopping trends, the Middle East places a strong emphasis on family-oriented experiences. 

Human connection is central in shaping commerce, with relationships and social interactions deeply influencing purchasing decisions. 

He underlined that while some of these characteristics can also be found in regions like Latin America and parts of Asia, they are far less prevalent in Western markets. 

Additionally, the retail landscape within Saudi Arabia itself is highly diverse, varying by region. Consumer preferences in the western, central, and eastern parts of the Kingdom are distinct, reflecting localized tastes and traditions. 

Chalhoub pointed out that Saudi Arabia’s rapidly growing young population is another key driver of change. 

With high birth rates and large families, the country’s demographics present significant opportunities for brands. Increasing education levels and digital connectivity are also shaping a new generation of more knowledgeable, globally aware, and tech-savvy consumers. 

He emphasized that this evolving demographic is one of the most valuable assets for the Kingdom and the broader Gulf region. 

Chalhoub provided insights into the global luxury market, emphasizing the Middle East’s growing but relatively small share. 

The worldwide luxury market — including beauty, fashion, jewelry, watches, and gift items — is valued at approximately $380 billion, with the Middle East accounting for $12.5 billion, or around 3 percent to 4 percent of the total. 

However, for successful brands, the region can represent between 5 percent and 7 percent of their global sales, highlighting its potential for further growth. 

Saudi Arabia’s luxury market is currently valued at nearly $3.5 billion, making up less than 1 percent of the global luxury sector. 

In comparison, the UAE, driven by tourism and local demand, boasts a luxury market exceeding $7 billion to $8 billion. 

Chalhoub also noted that despite their smaller populations, countries like Qatar and Kuwait have well-established luxury fashion markets, in some cases surpassing the Kingdom’s in terms of spending per capita. 

Given Saudi Arabia’s population of over 33 million, compared to Qatar’s 2 million and Kuwait’s 5 million, he suggested there is room for significant market expansion in the Kingdom. 


Saudi Arabia launches global platform to shape future of tourism 

Saudi Arabia launches global platform to shape future of tourism 
Updated 22 May 2025
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Saudi Arabia launches global platform to shape future of tourism 

Saudi Arabia launches global platform to shape future of tourism 

RIYADH: Saudi Arabia has launched TOURISE, a global platform connecting leaders in tourism, tech, investment, and sustainability, as it positions itself to shape future travel policy and innovation. 

The platform, officially introduced by Minister of Tourism Ahmed Al-Khateeb, will serve as a year-round initiative to unlock investment opportunities, address sector-wide challenges, and develop policies to guide the next phase of global tourism growth.  

The launch aligns with Saudi Arabia’s broader push to become a global tourism hub, backed by major infrastructure investments, streamlined visas, and high-profile events. In 2024, Saudi Arabia hit its Vision 2030 target of 100 million visitors — seven years early — with tourism now contributing nearly 5 percent to gross domestic product. 

Speaking during the virtual launch, Al-Khateeb said: “Tourism is one of the most dynamic, connective forces in the world’s economy, supporting one in ten jobs globally. But as the world evolves, the sector must too.”  

He added: “Whether adapting to technological disruption and changing traveler expectations, to addressing the urgent calls for sustainability and a more equitable approach to travel, TOURISE will be the much-needed platform to shape the future of tourism.”  

TOURISE will be supported by an advisory board composed of global figures from the tourism, hospitality, and technology, as well as entertainment and investment sectors. 

According to the official press release, TOURISE will also form working groups focused on key themes and will publish white papers and global indices in collaboration with international organizations. 

The first TOURISE Summit will take place in Riyadh from Nov. 11-13. The event will explore four major areas: the role of artificial intelligence in tourism, investment and business model innovation, travel experience upgrades, and inclusive and sustainable tourism practices.  

An Innovation Zone will spotlight emerging technologies from both public and private sector firms. 

An accompanying awards program will recognize destinations and organizations that demonstrate leadership in categories such as sustainability, digital transformation, cultural preservation, inclusive tourism and workforce development.  

Nominations for the awards are scheduled to open on June 2, with winners to be announced on the summit's opening day. 

“For this industry to evolve and reach its full potential, public-private sector collaboration is critical to the continued success of Travel & Tourism worldwide,” said Julia Simpson, president and CEO of the World Travel & Tourism Council and a member of the TOURISE advisory board.  


Egypt central bank cuts key interest rates by 100 basis points, statement says

Egypt central bank cuts key interest rates by 100 basis points, statement says
Updated 22 May 2025
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Egypt central bank cuts key interest rates by 100 basis points, statement says

Egypt central bank cuts key interest rates by 100 basis points, statement says

CAIRO: Egypt’s central bank lowered its key interest rates by 100 basis points on Thursday, its second rate cut in 2025 after keeping rates unchanged for a year.


Closing Bell: Saudi main index ends lower at 11,188

Closing Bell: Saudi main index ends lower at 11,188
Updated 22 May 2025
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Closing Bell: Saudi main index ends lower at 11,188

Closing Bell: Saudi main index ends lower at 11,188
  • MSCI Tadawul 30 Index lost 12.2 points to close at 1,428.81
  • Parallel market Nomu declined by 156.89 points to end at 27,260.73

RIYADH: Saudi Arabia’s Tadawul All Share Index closed in the red on Thursday, falling 114.94 points, or 1.02 percent, to settle at 11,188.74.

The total trading turnover reached SR4.4 billion ($1.17 billion), with 76 stocks advancing and 165 declining.

The MSCI Tadawul 30 Index also dropped, losing 12.2 points, or 0.85 percent, to close at 1,428.81.

The Kingdom’s parallel market Nomu declined by 156.89 points, or 0.57 percent, to close at 27,260.73, with 29 stocks gaining and 49 retreating.

The best-performing stock of the day was Saudi Reinsurance Co., rising 3.70 percent to SR49.

Other top gainers included Al-Rajhi Company for Cooperative Insurance, whose share price rose 3.65 percent to SR119.2, and Umm Al-Qura Cement Co., which gained 3.42 percent to SR17.54.

The day’s largest decline was seen in SHL Finance Co., with its share price dipping 4.93 percent to SR19.30.

Al-Etihad Cooperative Insurance Co. saw its shares drop 3.86 percent to SR13.44, while Saudi Arabian Oil Co. declined 3.64 percent to SR25.15.

The best performer on the Kingdom’s parallel market was Enma AlRawabi Co., with its share price surging by 7.77 percent to reach SR24.98.

Lamasat Co.’s share price increased by 7.58 percent to reach SR7.1, and Natural Gas Distribution Co. reached SR47, increasing by 6.82 percent.

Albattal Factory for Chemical Industries Co. was the worst performer on the parallel market, declining 16.83 percent to reach SR42.


Aramco, stc drive Saudi brands’ value up 14% to $117bn, new report shows 

Aramco, stc drive Saudi brands’ value up 14% to $117bn, new report shows 
Updated 22 May 2025
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Aramco, stc drive Saudi brands’ value up 14% to $117bn, new report shows 

Aramco, stc drive Saudi brands’ value up 14% to $117bn, new report shows 
  • Energy, banking, and telecommunications represent nearly 74% of the total brand value in the rankings
  • Dairy producer Almarai is recognized as the Kingdom’s third strongest brand

RIYADH: Saudi Arabia’s top 100 brands reached a combined valuation of $116.8 billion as of January, up 14 percent year on year, led by energy giant Aramco and telecom operator stc, according to a new report.

Marketing consultancy firm Brand Finance said Aramco retained its position as the Kingdom’s most valuable brand for the sixth consecutive year, with a valuation of $41.7 billion.

The company’s strength stems from its global oil production capabilities and investments in low-carbon technologies. 

Aramco retained its position as the Kingdom’s most valuable brand for the sixth consecutive year. Shutterstock

The Kingdom’s economy remains heavily influenced by its core sectors — energy, banking, and telecommunications — which together represent nearly 74 percent of the total brand value in the rankings. This sector concentration underscores Saudi Arabia’s ongoing economic diversification efforts as part of its Vision 2030 strategy. 

Andrew Campbell, managing director, Brand Finance Middle East, said: “Saudi Arabia’s brand landscape is evolving at an impressive pace, driven by bold strategies, innovation, and a clear vision for the future.” 

He added: “From long-standing powerhouses like Aramco and stc to fast-rising brands like Saudia and Almarai, there’s a real sense of momentum across sectors. These brands are not only contributing to the Kingdom’s economic transformation but also setting new benchmarks for excellence in the region and beyond.” 

The report further revealed that stc ranked as the Kingdom’s second most valuable brand in 2025, with a valuation of $41.7 billion, up 16 percent year on year. 

This growth is primarily linked to the successful implementation of its Masterbrand strategy, which facilitated expansion into sectors like banking, cybersecurity, B2B, and IT services through strategic mergers and acquisitions. 

stc ranked as the strongest brand in Saudi Arabia, earning a Brand Strength Index score of 88.7 out of 100 and an AAA rating. File/Reuters

The report by the London-based brand valuation consultancy showed that stc is also ranked as the strongest brand in Saudi Arabia, earning a Brand Strength Index score of 88.7 out of 100 and an AAA rating. Its continued investment in 5G infrastructure and digital financial services has solidified its position as a telecom leader. 

An AAA rating is the highest possible credit or brand strength rating, indicating robust reliability, quality, and performance. 

With brand value up 20 percent to $4.7 billion, Dairy producer Almarai is recognized as the Kingdom’s third strongest brand, earning a Brand Strength Index score of 85.5 out of 100 and an AAA brand strength rating. 

Almarai is also ranked as the top brand in Saudi Arabia for environmental, social, and governance performance. Almarai

This follows the brand’s collaboration with Google Cloud, launched in November, which is driving its digital transformation and enhancing operational efficiency. 

Almarai is also ranked as the top brand in Saudi Arabia for environmental, social, and governance performance, underscoring its strong commitment to ethical business practices, sustainable farming, and reducing carbon emissions. 

As for Saudia, its brand value surged by 34 percent to reach $1.1 billion in January, making it the fastest-growing Saudi brand and marking its first time crossing the billion-dollar milestone. 

Saudia’s brand value surged by 34 percent to reach $1.1 billion in January. Wikipedia

This achievement is largely attributed to the airline’s bold rebranding, along with advances in AI-driven customer service and infrastructure upgrades, which have significantly boosted its global brand visibility. 

The report further revealed that ROSHN Group, with a brand value of $1.1 billion, is the highest-ranked new entrant in the Kingdom this year. It also became the most valuable real estate brand in the country and secured a place among the top 20 brands overall. This debut reflects the company’s strong financial performance and ambitious expansion strategy. 

“Saudi Arabia’s brand landscape is evolving at an impressive pace, driven by bold strategies, innovation, and a clear vision for the future. It’s particularly exciting to see new entrants like ROSHN Group make such a strong debut, showing that diversification and ambition are paying off,” Campbell added. 


Saudi Arabia doubles funding to Union of Arab Chambers

Saudi Arabia doubles funding to Union of Arab Chambers
Updated 22 May 2025
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Saudi Arabia doubles funding to Union of Arab Chambers

Saudi Arabia doubles funding to Union of Arab Chambers
  • Expanded support will significantly enhance UAC’s capacity to deliver programs and initiatives empowering the Arab private sector
  • FSC and UAC are working to boost intra-Arab trade and expand access to third markets

JEDDAH: Saudi Arabia has doubled its financial contribution to the Union of Arab Chambers, a decisive move aimed at reinforcing regional economic integration and boosting private sector cooperation across the Arab world.

The Federation of Saudi Chambers announced the increase on Tuesday, stating that the expanded support will significantly enhance the UAC’s capacity to deliver programs and initiatives that empower the Arab private sector and foster closer economic ties among member states.

The decision underscores the Kingdom’s growing leadership role in regional economic affairs and comes at a time when calls for deeper intra-Arab collaboration are intensifying. A 2023 report from the UN Economic and Social Commission for Western Asia warned of declining exports and over-reliance on limited markets, urging Arab countries to diversify and strengthen intra-regional trade.

Despite shared economic interests, intra-Arab trade made up just 13.8 percent of the region’s total foreign trade by late 2024—a figure FSC President Moejeb Al-Hwaizy described as “modest” in comparison to other global economic blocs. Al-Hwaizy was elected first vice president of the UAC during its 135th session in Qatar.

The FSC noted that Saudi Arabia’s enhanced contribution reflects its “strategic responsibility” as the UAC’s largest financial backer and soon-to-be president. “This is an extension of the federation’s role in supporting the private sector at the local, regional, and international levels,” it said.

The Kingdom’s leadership in the UAC, founded in 1951 and comprising chambers from all Arab League member states, highlights its broader ambition to promote joint Arab economic action, unlock cross-border investment, and facilitate closer coordination among private sector leaders.

With several joint initiatives already underway, the FSC and UAC are working to boost intra-Arab trade and expand access to third markets through business partnerships and strategic cooperation.

As the only Arab country in the G20 and the region’s largest economy, Saudi Arabia’s growing influence in Arab economic institutions signals its continued commitment to fostering unity and resilience in a rapidly evolving global trade environment.