Al Meera and NIFCO form partnership to develop new chain of retail outlets in Oman

The announcement comes weeks after the visit of His Highness Sheikh Hamad bin Khalifa Al Thani, Emir of Qatar, to Oman. During his visit, HH the Emir and His Majesty Sultan Qaboos bin Said, Sultan of Oman, identified several areas of potential cooperation between Qatari and Omani companies for the mutual benefit of both countries and their peoples. Among those initiatives was the proposed development of a chain of retail outlets based on the expertise developed by Al Meera in Qatar.

Speaking at a press conference to announce the initiative, HE Sheikh Saad Al Mardhouf Al Saadi, Omani Minister of Commerce and Industry, said: "Al Meera is a well established regional brand that was home-grown in Qatar. We are grateful to Al Meera and NIFCO for taking this initiative, which will provide Omani consumers with more choices, create jobs and economic activity, and provide a welcome foreign direct investment from our brothers in Qatar."

The Memorandum of Understanding, which covers the activities required prior to incorporation of the venture, was signed in Muscat by Dr. Mohammed Al Qahtani, Deputy Chief Executive Officer, Al Meera, (representing the Qatari party) and Sheikh Rashid Al Sadi, Chief Executive Officer of NIFCO, (representing the Omani party).

Al Meera is public company traded on the Qatar Exchange (qe.com.qa). The company has twenty-two outlets in Qatar. During 2010, the company achieved sales of QR914m and net profit of QR63.9m. Al Meera's largest shareholder is the Government of Qatar.

Commenting on the company's plans for the Omani market through its joint initiative with NIFCO, Dr. Mohammed Al Qahtani, Deputy Chief Executive Officer of Al Meera, said: "We believe that our experience in the Qatari market, where we have grown from a start-up into the largest retailer in the country, will serve us well in Oman, which is a growing market. We welcome the opportunity to work with a respected local investment institution like NIFCO, which will add great value to the project."

The initiative is committed to seeking to establish a chain of retail outlets that will add both economic and social value. In its first phase, the partnership will complete a detailed feasibility study of the Omani market-place and finalize the working parameters between the parties. Following this process, the partnership will commence commercial operations.

The company will establish shopping centers, hypermarkets, supermarkets and retail grocery stores throughout Oman, seeking to add value by bringing Al Meera's established supply chain and strategic relationships to the Omani market.

"We are currently evaluating several potential locations and hope to select our first location and begin work during 2012," said Sheikh Rashid. "Overall, we hope to bring the right blend of products to the market to serve consumers in Oman and bring Al Meera's proven business model to this market."

NIFCO is one of Oman's largest asset management companies. It manages several successful funds, including the National Equity Fund, the NIFCO GCC Diversified Fund and the NIFCO Private Equity Fund. Through these funds, NIFCO has been a founder of major investment initiatives in Oman such as Oman Investment Corporation and Octal Holdings. NIFCO was established by Royal Decree in 1998 and is owned by the Omani State General Reserve Fund and the Omani pension funds.