The Rebirth of Retail In Saudi Arabia

COVER STORY

THE REBIRTH OF RETAIL IN SAUDI ARABIA

Al Othaim Investment Co. is one of the leading mall operators and developers in Saudi Arabia and, just like the Kingdom, it is rapidly changing. The company has a newly appointed Group CEO, Meshaal Ibrahim Bin Omairh. He is committed to disrupting the retail industry while continuing to draw on the family values instilled in the business by his predecessors, Mr. Fahad Al Othaim and his father, Sheikh Abdullah Al Othaim. Meshaal explains, “Al Othaim Investments is dedicated to the sustainable development of Saudi Arabia in line with Vision 2030. Driven by the values and beliefs of a family business, building on the success of Abdullah Al Othaim, the company’s new corporate governance with the new leadership team is committed to excellence and innovation while delivering significant socioeconomic benefits for the Kingdom.”

The company’s main commercial activity focuses on the establishment, operation and management of successful commercial complexes. With over fifty million annual visitors, these sites provide some of the most important entertainment, leisure and recreation destinations in Saudi Arabia.

Al Othaim’s Market-Leading Position In The Kingdom

Meshaal aims to cement Al Othaim’s position as a longstanding pillar of the Kingdom’s society while continuing to channel investments into the economy, supporting local communities as a result.

Currently, Al Othaim owns ten commercial complexes under the “Al Othaim Mall” name, two of which are located in Riyadh where the first mall opened over two decades ago. Three complexes were developed in the Al Qassim region, in the Eastern Province, and commercial complexes in Hail and Arar respectively. New projects are currently in the development pipeline in Riyadh, Dammam, Jubail and Al Kharj.

An ambitious expansion strategy will see the company add 20 new commercial complexes to be opened by 2030. These new projects will be located across the Kingdom in new communities for Al Othaim Investments. New projects are planned in Jubail, Khobar, Jeddah, Makkah, Madinah, Tabuk, Al Methneb, Al Kharj, Abha, Jizan,Yanbu, Sakaka, and Qatif.

A Unique Customer Offering

Under the Al Othaim umbrella many businesses thrive including international and local F&B brands, family entertainment centres, fitness centres, cinemas and fashion brands for our customers. The company operates a number of subsidiaries:

Abdullah Al Othaim Entertainment Company

Has forty entertainment centres in its portfolio in the Kingdom and across the MENA region. The company manages a distinctive brand collection including Saffori Land, FabyLand, The Chamber, Snow City, My Town, XtremeLand, Xtreme Zone and Action Zone. New custom VR gaming centres are soon to be added and opened this year.

Abdullah Al Othaim Fashion Company

Manages and operates fashion retail brands. Acquired franchises of many international brands, including Kiabi of France, the Italian brand OVS, the Swiss Tally Weijl, and the Portuguese brand Parfois. Many more new and exciting fashion brands are joining the line-up and are opening in 2022.

Abdullah Al Othaim Food Company

Focused on the food and beverage sector in the Kingdom. Restaurants and cafes include Moka and More Café, Oliver Brown Chocolate Café, Dallah Café, Buns House, Just Orange and Kabablaky. Many more new F&B brands are joining the line-up ready to open in 2022.

Wamda Company for Cinemas

Operates premium cinemas with brand franchise rights to Empire Cinemas in the Kingdom. Empire Cinemas are planning to operate many cinemas in the coming years in Al Othaim Malls in cities across Saudi Arabia.

As the head of this impressive portfolio, Meshaal is laser-focused on delivering the company’s aspiration to create engaging, vibrant, and integrated mixed-use communities for retailers and shoppers. His leadership is centred on breaking the ‘old’ mould of the retail business, as well as improving each of the community’s quality of life.

It’s no easy feat, but we believe that as a company we can accomplish this ambition. Our long heritage in the Kingdom and our strong focus on delivering what the people of Saudi Arabia need are helping to propel us forward.

Meshaal is one of Saudi Arabia’s most successful business leaders. He brings 26 years of relevant experience with a deep knowledge of the private sector in the Kingdom and internationally.

His resume includes senior executive roles as Chairman, CEO, and Board Member for many prominent businesses in Saudi and internationally including: Mohammed Abdulaziz Al-Rajhi and Sons Investment Co, Al-Rajhi Steel Industries Co, the International Beverage Company, the Saudi Tourism Development Company, Daem Real Estate Investment Co. and TAQA Co. Multinational corporations include Pratt & Whitney and Air Liquide.

His strategy based, forward-thinking business outlook is driven by a desire to achieve the best results for Al Othaim. Meshaal’s core approach is long-term strategic thinking, organizational development, while implementing an integrated strategy across all business units. He also brings an experienced eye for mergers and acquisitions.

The Group CEO’s unique skillset was not just built during his professional career, but also during his time studying at King Saud University, majoring in accounting. INSEAD in France tops off his academic qualifications majoring in corporate governance and global management.

Looking to the future, Meshaal believes that retail is being reborn in Saudi Arabia, “As one of the market-leading mall operators in the Kingdom, Al Othaim intends to become the region’s 1st choice community shopping and entertainment destination for both tenants and shoppers”. In order to achieve this, Al Othaim wants to be the meeting place for the community – a multipurpose, mixed-use destination with integrated office, residential, leisure and cultural amenities. Our intention is to provide all visitors and tenants with an interactive and truly integrated experience.

Using Innovation To Respond To Change

Recognizing that both the market and Saudi society are changing, Meshaal is keen to keep pace with the Kingdom’s ever-growing dynamism. The company will increasingly integrate incubator and pop-up shops into its retail-mix providing community engagement. According to Meshaal, “This will provide an exciting experience for consumers in our communities while integrating well with our wide range of in-house brands. Many disruptive initiatives will be reflected throughout the Al Othaim portfolio.”

The company is also committed to the digital integration of mobile technology across the company. Integration of technology throughout all businesses has accelerated during the COVID-19 pandemic, when virtual shopping experiences became popular with consumers. The combination of bricks and mortar experiential venues plus online trade choices will be crucial to serving younger, digitally native consumers while creating new revenue streams for the company. Al Othaim aims to create and operate the largest retail digital footprint regionally. “It’s no easy feat, but we believe that as a company we can accomplish this ambition. Our long heritage in the Kingdom and our strong focus on delivering what the people of Saudi Arabia need are helping to propel us forward,” says Meshaal.

Today is an exciting time for Al Othaim as Meshaal guides the company to new heights. A new corporate governance strategy driven by an experienced leadership team will guide and grow the company. Al Othaim is staying true to its roots, while expanding its portfolio. At its heart, the company is driven by long established values while flourishing in the rapidly expanding Saudi Arabia retail market.