Al Tayer Group in Gap and Banana Republic franchise

Dubai: Al Tayer Group, a leading diversified business entity, has signed a franchise agreement with Gap and plans to roll out 25 Gap and 10 Banana Republic stores by 2010.

Under its agreement with a subsidiary, Al Tayer Group and its subsidiaries will hold exclusive rights to operate Gap and Banana Republic branded apparel and accessories stores in the UAE, Kuwait, Qatar, Bahrain and exclusive rights for Gap in Oman.

The first Gap stores will open late this year and the Banana Republic stores are scheduled to open in 2007.

Joshua Schulman, Gap's senior vice president of international strategic alliances, told Gulf News in a telephone interview: "We see the Middle East as a potential growth market where growth is expected to be driven by the young Arab population, large expatriate communities as well as the growth in tourism.

"It is a very dynamic and young market. Dubai is a world class shopping destination with a fashion-conscious population having some of the largest and most important shopping malls in the world."

This is Gap's second franchise agreement to extend its portfolio of brands to international markets. It follows the company's January announcement that Gap and Banana Republic stores will open under franchise and distribution agreements in Singapore and Malaysia.

"Through our alliance with the Al Tayer Group and their deep understanding of these areas, we are now able to bring Gap's casual style and Banana Republic's affordable luxury to consumers in these dynamic markets," Schulman said.

Gap currently owns and operates Gap brand stores in five countries and Banana Republic stores in three countries.

With yesterday's announcement and its previously announced franchise and distribution agreements for Singapore and Malaysia, the company is expanding the global reach of its brands with Gap stores in 12 countries and Banana Republic stores in 9 countries by 2010.

"We are looking forward to bringing Gap and Banana Republic brands to the Middle East markets. Being the largest luxury retailer in the region, we are pleased to be entering a new segment of the market with these globally successful brands.

"Providing a shopping experience synonymous with that of the brand's home country, we're confident about customers enjoying a truly international shopping experience." said Khalid Al Tayer, Group General Manager.

Established in 1979, Al Tayer Group is among the GCC's leading business groups, comprising 20 companies and over 3,500 employees.

Gap is a $16 billion revenue international clothing company which operates about 3,000 stores in various countries such as the US, the United Kingdom, Canada, France and Japan.