GEORGE TOWN: The United Arab Emirates (UAE) and other Middle-Eastern countries still offer plenty business opportunities despite the Dubai financial crisis, said the Malaysian Retailer-Chains Association (MRCA).

MRCA is still looking for opportunities for further expansion in the Middle East, secretary-general Datuk Nelson Kwok Teng Toong told StarBiz.

“During such times, branded products from the United States and Europe would be expensive for businessmen in UAE to take up.

“Thus they would be looking for Asian brand names, especially those that have already done well in Malaysia and the Middle East,” he said.

 
Leon Lee says PUMM plans to take advantage of the Dubai crisis.
 In October, the MRCA led a delegation comprising 30 entrepreneurs to the Middle East in search of fresh business opportunities.

“This trip was for our members to explore, using Dubai as the hub for their expansion into the Middle East, North Africa region (MENA), the Middle East Africa (MEA) area and Gulf Cooperation Council (GCC) countries.

“We managed to gather important and relevant information on franchising fees, rentals in shopping malls, salaries and market demand in these areas.

“Our members, involved in the food services, hospitality and retail fashion industries, are looking for joint-venture opportunities and franchisees,” Kwok said.

The Penang chapter of the Malaysia Entrepreneurs’ Development Association, known by its Malay acronym PUMM, said its members have been planning to enter the Dubai market to take advantage of the opportunities presented by the Dubai crisis. “If we do the marketing now, by the time the crisis is over, the brand names of our members would be established in the region,” said Leon Lee, deputy chairman of PUMM Penang. PUMM has about 2,000 members.

Companies with plans to further expand their business in the Middle East include MRCA members such as Marrybrown Fried Chicken Sdn Bhd, Bonia Corp Bhd and PUMM member HomeTouch Solutions Sdn Bhd, a subsidiary of ACE market-listed Dis Technology Holdings Bhd.

Marrybrown managing director Nancy Liew said this was a good time to penetrate the Middle-Eastern market, using Dubai as a platform.

“This is because rentals in Dubai have declined by about 30%, owing to an increased supply of space in the emirates and lower demand, while property prices have dropped by as much as 50%, which provide opportunities to get good locations at lower rate. All fundamentals that made Dubai successful are still there, such as its tax-free status, the relative ease of setting up and operating a business, free-market conditions, its geographical position and the existence of free zones.

“We plan to add 20 new restaurants in the Middle East next year,” she said. Marrybrown has about 80 outlets in the UAE, Bahrain, Kuwait, Saudi Arabia, Qatar, Syria and Iran after starting operations in the Middle East in 2000.

Bonia business development director Geoffroy Drouas said the group was now eyeing markets in UAE, Bahrain, Qatar and Kuwait.

“The Dubai credit crunch crisis is not expected to have an impact on our business, as Bonia sees itself as a long-term player in the region.

“We are currently in talks with the Middle-Eastern entrepreneurs with experience in the retail fashion industry to market our Bonia brand names, comprising Bonia, Sembonia and Carlo Rino, in the region.

“We are also in talks with entrepreneurs in Lebanon and Jordan. There are plans to penetrate the MEA and MENA markets,” he said.

Bonia presently has 19 boutiques in Saudi Arabia, of which 16 offer Bonia brands and three, Carlo Rino products. The group also recently opened two Bonia boutiques in Syria, located in Damascus and Aleppo.

HomeTouch Solutions Sdn Bhd, a global distributor of smart home automation systems, has plans to enter the Dubai and other Middle-Eastern markets.

“Our Asian brand names of green smart automation home products, comprising hybrid hot water system, LED-lighting system and energy saving system, are made in Hong Kong and Malaysia, and are priced at least 50% lower than smart home products of similar range from Europe.” said general manager Ooi Oh Kok Teong.

More Details >>