RETAIL & HOSPITALITY

We have been working hard over the last 20 years to get the company to a point where it can be listed. It makes perfect sense for both management and shareholders to try and capitalize on how much work has gone on within the company in regards to its IPO listing. It can only be a good thing when a company like ACC gains international exposure. The company has great potential, just as Saudi Arabia has. If you look at Saudi Arabia from a purely commercial real estate perspective, there are a lot of things that are unique compared to larger markets. Retail real estate supply is much lower than most of the other GCC markets.

OLIVIER NOUGAROU

We are working closely, not only with the General Entertainment Authority (GEA), but also with other relevant authorities to deliver the best experience to Saudi residents and overseas visitors. We recently concluded a successful collaboration with GEA as part of the Jeddah Season, with pop-up restaurants and a range of events. Because of the success, we are already working to replicate this at Al Soudah Season in September, followed by more events in Riyadh, Diriyah, AlUla, and elsewhere. The feedback from both domestic and international visitors has been extremely positive, and we are working to expand our entertainment and hospitality offerings over the coming months and years.

ABDULAZIZ AL HABIB

our position in the market. Investors’ appetites were reflected in our IPO. International investors are already aware of plans applied in the best malls in the world. They have a benchmark in mind that they are hoping to achieve, and we offer an approach that lives up to their expectations.

Saudi consumers are like other consumers around the world, just a bit younger and more sophisticated. With strong competition from e-commerce, malls today have to deliver more than just goods and merchandise to attract top consumers and retail brands. We recognize these trends and are working with experts to create an environment that will attract more customers. Visitors to our malls will find exciting new restaurant concepts, cinemas, and other entertainment options for families and adults alike, special events, and a selection of top retail brands. We envision families and individual consumers looking forward to a visit to our facilities for both shopping and leisure.

AAH What are your strategic priorities and ambitions going forward?

Our plan is to open eight additional shopping centers over the next four years, while finishing two expansions. On average, we have opened one mall per year over the last 17 years. That is why opening eight in the next four years is ambitious. With 17 years in operation, our track record is both long and short. If you compare us to most of the real estate players worldwide, we have grown a huge amount in a short period. Our shareholders had a strong vision from the beginning, and we have been able to implement that vision.

ON

Our most important strategic objective is to ensure we provide the best and most innovative offerings in an ever-changing world and work with all our stakeholders—customers, employees, the community, and our shareholders— to improve the lives we touch. Our motto is setting trends and touching lives, and this motivates everything we do. ✖

AAH

L’azurde has become the largest gold and jewelry designer, manufacturer, and distributor in the Middle East. It is the fourth-largest jewelry manufacturer worldwide. How have you advanced in the Saudi market?

We were launched 40 years ago in Riyadh by a Saudi entrepreneur. He invested tremendously in manufacturing capabilities and technology. This is why we have a 20,000sqm facility and make annual investments in state-of-the-art technology and machinery. The company was acquired by a private equity group in 2010, which bought 77% of L’azurde, transforming it from a family-owned business to a private-equity-owned firm. Then, in 2016, we listed the company on the Saudi Tadawul stock exchange. In 2018, L’azurde made its first-ever acquisition by taking over the Kingdom-based franchise of TOUS, a fashion jewelry brand that operates more than 800 stores around the world. Our acquisition was one of the largest M&A transactions in Saudi Arabia in 2018. To add this brand, we decided to take advantage of our management skills and understanding of the Arab consumer. We were also aided by our good relationship with malls in Saudi Arabia and Egypt. As of 2Q2019, we had five straight quarters of growing revenues and net income YoY. We have two major markets, Saudi Arabia and Egypt, where 90% of our revenues come from. We have been in Egypt for more than 20 years. We operate two large factories there, employing 1,200 people. We are by far the leader in the Egyptian markets. Overall, we sell 1 million pieces of jewelry each year. Every month we launch 500 new designs. We invest significantly in innovation and design. The first thing our customers ask when they walks into a store is, “What is new?” We continue to innovate, design, and launch new collections, designed specifically for the Arab world. L’azurde has become famous because of its association with celebrities and its collections launched by top designers. There are many up-andcoming fashionistas in Saudi Arabia. We collaborate with some to support Saudi women in entrepreneurship. We want to let them contribute, rather than just being customers.

What are some of the unique characteristics of the Saudi market?

In 2018, we were the highest-selling premium jewelry brand in the Saudi market, in comparison to local and regional players. We are positioned as a premium brand, offering top-quality craftsmanship and designs. We do not compare ourselves to international brands. We understand and come from the region, and we custom-design high-quality premium jewelry for Arab women. We offer gold jewelry that we sell by weight to Saudi women. Gold is a great way for them to preserve the value of their investments themselves. That is an extremely important aspect of our product for Saudi women. Second, we understand the designs they desire for different occasions because of our history of selling, developing, and designing gold jewelry in Saudi.

What are some of the specifics of supply chains in the luxury segment?

We borrow gold through banks that hold our working capital. We do not buy or own gold. We get diamonds mainly from India, directly from suppliers we have known for many years.

What are your strategic priorities and ambitions for the coming years ahead?

We have a major opportunity with the launch of Miss L’, our fashion jewelry brand. Moving forward we will fully leverage our understanding of the Middle East to grow L’azurde, TOUS, and Miss L' throughout the region. We also may potentially expand into Europe and the US. Over the next year, we will add a few additional brands to complement our current portfolio. The jewelry industry overall is fairly fragmented, and there is room for many players to target different needs and aspirations of consumers. This is why we will move from a single-brand model to a multiple “house of brands” model over the coming years. We are on track to achieve this. ✖

“There are many upand-coming fashionistas in Saudi Arabia. We collaborate with some to support Saudi women in entrepreneurship.”