From left: Zouhair Eloudghiri, Executive Vice-President FMCG sector, Al Naghi Group; Mohammed Yousef Naghi, Al Naghi Group's Chairman; Geoff Skingsley, Executive Vice-President Africa Middle East-L'Oreal Group; and Thierry Houssin, Managing Director L'Oreal Middle East. — Photo by Amer Helabi Saleh Fareed Saudi Gazette JEDDAH – L'Oreal and Al Naghi Group announced Wednesday the signing of an agreement for the creation of a joint company called L'Oreal KSA that would, among others, generate jobs for young Saudi women. At a press conference, Mohammed Yousef Naghi, Al Naghi Group's Chairman; and Geoff Skingsley, Executive Vice-President Africa Middle East-L'Oreal Group, both said that the joint venture will create jobs for young Saudi women through advanced training on cutting edge technologies. “We are delighted to join hands with our long-term partner Al Naghi Group to further develop the career of young Saudis in the cosmetic industry to promote entrepreneurship among young Saudis,” Skingsly said. Mohammed Yousef Naghi also revealed that a new private beauty academy is under study between the two partners to promote the beauty sector in Saudi Arabia. Based on latest statistics, the sales of skin care products to reach $502.9 million in 2015 – marking a 26 percent increase. On the other hand, Saudi woman spends an average of SR14,000 per year on cosmetics. Speaking about the new partnership with L'Oreal, the world's largest manufacturer of high-quality cosmetics and perfumes, Mohammed Yousef Naghi said L'Oréal brands have been present in Saudi Arabia since 1982 and in 2000, L'Oréal appointed Al Naghi Group as its sole distributor for its consumer products, active cosmetics and professional products divisions. “Our partnership with L'Oréal for around 12 years has enabled the access of this great company's brands to millions of Saudi consumers across the Kingdom. We are very proud to be associated with such an ethical, consumer and community-enabling Group and look forward to build the business further through the creation of L'Oreal KSA,” he noted. He added that when the new joint venture company begins operations, it will establish an operation with integrated production and sales functions under the basic Al Naghi Group policy of “start small, grow big.” L'Oréal KSA's scope will include implementing best practices on developing the local market, increasing consumer proximity to better understand the Saudi woman's needs, ensuring greater reach for the Group's products to more Saudi consumers and a commitment to training, education and nurturing local talent within the L'Oréal KSA team. Commenting on the new joint venture, Skingsley said “ we are very delighted to get this partnership into a higher level in order to achieve our diversified mission and with such long and solid relationship with Al Naghi Group, I believe we are no strangers in the Saudi market.” He announced that L'Oreal is targeting 1 billion new consumers around the world and Saudi Arabia is a strategic market for their business. “Saudi Arabia is one of the most enterprising nations in the Middle East, growth, population and strategic planning has helped to create today's stable, robust economy,” he further said. The new subsidiary will manage a portfolio of brands, among others, L'Oréal Professional, Kerastase, L'Oréal Paris, Garnier, Maybelline New York, Vichy. Thierry Houssin, Managing Director L'Oreal Middle East; and Zouhair Eloudghiri, Executive Vice-President FMCG sector, Al Naghi Group, were also present at the press conference. Noting that the market for skin care to be worth $1.1 billion, Houssin said “we are ready to grow and we have doubled our business in Saudi Arabia and will enjoy a successful joint venture with Al Naghi Group.”
