Dubai: Marka, a Dubai-based retail operator, announced at an event on Tuesday that it had signed a five-year contract that gives them exclusive rights to manufacture, distribute and sell Real Madrid products across the GCC.
Speaking at the announcement, Khalid Al Muhairi, Vice-Chairman and Managing Director, Marka, stated that he expected the agreement to provide around $11 million (Dh40.37 million) a year over five years, or $54.5 million in total.
“These products will not be available anywhere else in the world. I think this agreement will deliver profits to Marka,” Al Muhairi said.
He declined to disclose how much Marka had paid for the licensing rights.
The items will be sold across 11 separate points of sale, in addition to Real Madrid themed pop-up stores.
When asked by Gulf News about the specifics of these points of sale, Al Muhairi mentioned that products would be sold in Paris 68, a new retail-concept store, developed in-house by Marka that will start operating in the retail sector this year. It is expected to be revealed soon.
The product range will also be carried at Modell’s Sporting Goods, another outlet in Marka’s retail portfolio.
Al Muhairi said similar partnership with well-known brands will be announced in the coming weeks, hinting that at least one would be tailored towards children.
“Your kids will happy,” he said.
The move is in line with the strategy Marka has pursued since its incorporation in 2014: partnering with well-known brands across the sports, fashion and beauty, and hospitality verticals in the UAE and wider GCC region.
To design the collection, Marka invited 10 individuals all under the age of 25 to contribute.
“We need more young people involved. This is a great way to make our products more attractive,” Al Muhairi said.
The products included in the collection sold by Marka will differ from those sold in the Real Madrid store, and the portfolio will include T-shirts, shoes, swimwear, and polo shirts. The line is expected to be revealed in the next 10 days, according to Al Muhairi.
Economic outlook
Speaking about the wider global economy, he said the worst was over.
“I think 2016 was the bottom of the cycle. The oil price is significantly higher than it was at this time last year. We are optimistic and this is giving us the confidence to spend.”
Al Muhairi said that Marka is currently not interviewing anyone for the recently vacated position of CEO, held by Nick Peel until he resigned in December.
