Saudi-based retailer Fawaz Abdulaziz Alhokair Co said on Saturday it has entered preliminary agreements to buy stakes in three retail firms as part of its drive to expand in the region. Alhokair signed memorandums of understanding to buy stakes in Retail Group Gulf, Retail Group Egypt and Retail Group Jordan, said the Saudi firm which specializes in fashion retail. Alhokair represents international brands such as Zara chain owned by Spain's Inditex and Marks and Spencer. Alhokair, which operates more than 900 stores, will open 112 new stores this year, about half of which will be in other countries in the MENA region and emerging markets such as Kazakhstan and Azerbaijan, said Simon Marshall, the company's chief executive. “We want to continue our expansion, and we now need to look to the international arena,” he said. “So we're opening in Dubai and we've got two (retail) companies we're looking to purchase in Jordan and Egypt.” The group's expansion comes after a difficult year for retailers around the world because of the economic downturn. Sales in Saudi Arabia grew by 5 percent compared with the year before, and sales in Egypt were up between 1.6 and 1.8 per cent, Marshall added.
