MALABAR Gold and Diamonds, one of the world's largest gold and diamond retailers, will open 21 retail stores across the GCC, India and Far East in the next six months with an investment outlay of AED460 million ($125 million). Of the total, Malabar Gold and Diamonds is investing AED223 million in eight stores in the UAE, AED100 million in five outlets in Saudi Arabia, AED57 million in three outlets in Oman and AED20 million in one outlet in Malaysia. In addition to these, the company will add four more outlets in India at an investment of AED60 million. The expansion will see the largest gold and diamond jewelry retailer expand its retail network from 134 to 155 – reinforcing its position as the most preferred jeweler in the world. The move also reflects the fastest growth by a jewelry retail chain in the world – emerging from being a small player to being among the top 5 jewelry retailers worldwide within the span of just a decade. Malabar Gold and Diamonds, which started its international operations in Dubai just under ten years ago, has recorded phenomenal growth in gold and diamond jewelry sale despite the fluctuating gold price in the market. “The current lower gold and commodity prices offer a great opportunity for investors and jewelry buyers. With gold prices remaining low, we see a strong buyer and investor interest for the yellow metal and diamonds,” MP Ahamed, Chairman of Malabar Group, said. “We have seen a greater appetite among consumers who have continued to throng our outlets for more gold and diamond jewelry this summer. Our next phase of expansion is aimed at offering a better value to our customers as well as a wider option to investors who are looking at higher returns from investment.” The company is set to open eight outlets in the UAE including a large format ‘jewelry paradise' that will spread across 12,000 square feet of floor space in Abu Dhabi. This will be the largest jewelry retail outlet in the Middle East showcasing a variety of jewelry catering to a global audience. The move is part of the $700 million (AED2.5 billion) expansion drive announced by Malabar Gold and Diamonds in 2013 – that is expected to more than double the number of its outlets to 220 by the end of 2018. The $4 billion annual turnover will place Malabar Gold along the likes of Tiffany and Company, the world's second largest jewelry retailer and after Chow Tai Fook – the Hong Kong-based largest jewelry retailer. A De Beers' survey shows that the outlook for diamond jewelry sales growth in 2015 is positive across all main markets as retailers anticipate another year of growing consumer demand. Optimism among jewelry retailers is highest in the US and India, while growth in China is expected to pick up after the Chinese New Year. Philippe Mellier, Chief Executive of De Beers Group, said: “2014 was another strong year for diamond jewelry demand across the world, as we saw continued growth across both mature and quickly developing markets. Retailers are also positive about the prospects for 2015 and, while there are some potential headwinds, the stage is set for another good showing across the major consumer markets.” “As the number of middle class households in the major consumer markets is set to grow by hundreds of millions in the years ahead, the medium to long term prospects for the diamond industry are also exceptionally strong if the right investments continue to be made across the value chain.” Malabar Gold and Diamonds had opened a large format ‘jewelry paradise' at the Gold Souq in Deira, Dubai last year. This was the largest jewelry retail outlet in Dubai – The success of which has prompted the company to set up a similar facility in Abu Dhabi. “With consumer demand growing by the day, we feel the need to offer greater space, design, collections and options to our customers,” Shamlal Ahamed, Managing Director of Malabar Gold and Diamonds - International Operations, said. “The higher footfall and brisk business at our large-format outlet at the Gold Souq, has prompted us to invest in a similar facility in Abu Dhabi, where customers will be spoilt for choice, designs and a wider price point. We will be showcasing a wide variety of jewelry ranging from AED500 to AED5 million in this new outlet. One can find gold jewelry in 18K, 21K, 22K and 24K here and also will showcase solitaires, diamonds and pearl jewelry” Established in 1993, Malabar Gold and Diamonds have the wealth of experience in serving the discerning customers for over two decades. It is the consistent efforts by their management to deliver more than what they promise that led to their success. Commitment to customer satisfaction, unique designs and value for money are some of the factors that set them aside from their competitors. Recognizing their potential in the Middle East, they have embarked on expanding their footprints across the region. The group is represented in the Far East with 3 outlets in Singapore and 1 in Malaysia. The group will soon be expanding into Hong Kong and Indonesia. The company is also planning to spread their wings to European markets starting with UK and US. ‘Our expansion is an substantiation of our positive approach to the business opportunity in the markets we operate in. We are upbeat about the oncoming 6 months as it comprises of the key festive and holiday seasons which results in a lot of jewelry buying for gifting as well and for personal use. The shopping festivals organised by multiple cities also add to the charm of the holiday season.' Abdul Salam KP, Group Executive Director of Malabar Group, said. The group is in the forefront when it comes to CSR activities also. They set apart certain percentage of its net profit to the benefit of needy. The charity projects of Malabar Gold and Diamonds have touched the lives of thousands of people across the world. They focus primarily in five priority areas such as health, education, environment, housing and women empowerment. The company, owned by 1,700 shareholders, was ranked as the third largest jewelry retailer last year after Hong Kong-based CTF with a turnover of $9 billion and Tiffany and Company, which has an annual turnover of $4.25 billion. The company, which excels in quality products and services, has more than 7,500 professionals on its payroll. — SG
