Al Sayegh plans Dh40m expansion

Duba:i Al Sayegh Brothers, part of Abu Dhabi-based Al Sayegh Group, is investing Dh40 million to open six more Electronics For You (e4u) outlets by 2010 as part of expansion drive, a top official said.

"We are promoting a new identity in retailing concept. We are targeting tech-savvy youths in the country. It will be different from the rest and we want customers to be our patrons. It will be multi-branded electronic products," Iqbal Hussain, vice-president of Al Sayegh Brothers, said.

He said the group has already reserved spots in all up-coming malls - City of Arabia, Zabeel Mall and Sports City, Marina Mall.

"Right now, we have one at Sharjah City Centre. Next one will be coming up at Nasser Square, Deira, and one in Abu Dhabi this month."

"The retail sector is going to boom with the development of construction industry and infrastructure. Right now, people say there is oversupply and inflation. But this is a temporary issue," he said.

"Once these settle down, and it has to settle down, demand will also be robust with the arrival of tourists and bigger planes. The US slowdown has not affected this part of region much. It has not spread beyond Europe," he said.

Expectations

"Sales are growing and people are spending. We see more good days on the way. We are gearing up to handle bigger volumes. The retail industry is expected to grow by about 25 per cent this year. Dubai is the distribution hub for other countries. So the retail industry plays significant role in boosting UAE's economic growth," Hussain said.

Al Sayegh Brothers has recorded more than 30 per cent increase in revenues to Dh240 million in the first half of this year.

For the full year, the company expects a 35 per cent rise in revenues to Dh500 million from the region.

Hussain said smart home technology is gaining importance in the UAE due to the construction boom.

"We have already signed deals with Gold Crest and other developers for more than Dh150 million to implement smart home systems. Gold Crest's Smart City projects, which will be completed by 2011, will have this facility. We have also entered a joint venture with Aldar Properties to implement this system for the Al Raha Beach Development," he said.

Retail: Biggest LG showroom

Al Sayegh Brothers will be opening the biggest exclusive LG brand showroom in the world at the Mall of the Emirates with an area of 5,600 square feet in October.

"The Mall of the Emirates's LG brand showroom will be the biggest in the world, much bigger than the one at Harrods, London," Ki Wam Kim, chief executive of LG MEA, said.

"It will offer lifestyle solutions and smart home technology according to the needs of the customers. It will have an operating cost of about Dh10 million a year," Iqbal Hussain, vice-president of Al Sayegh Brothers, said.