Yoox Net-A-Porter (YNAP), the world’s leading online luxury fashion retailer, will be increasingly focused on a lucrative Middle East, as Dubai-based business tycoon Mohamed Alabbar acquired shares in the group.
YNAP announced today a capital increase of €100 million, to be entirely subscribed for by Alabbar Enterprises, founded and owned by Mohamed Alabbar.
Alabbar’s strong position in the market is expected to accelerate the luxury fashion retailer’s growth in the Middle East.
Alabbar Enterprises operates and invests in businesses from different sectors, such as luxury, fashion, retail and e-commerce, among others, in different parts of the world, including the Middle East, South Asia and Africa.
Mohamed Alabbar is also the chairman Emaar properties, a global property builder based in the emirate. The government-linked firm is the builder of the world’s tallest tower, Burj Khalifa.
“With an unrivalled product offering a superior customer experience, I look forward to collaborating with the management team and board as the group further expands within the region,” Alabbar said in a statement.
In light of the lower-than-expected cash requirements, the group has opted to raise €100m of equity capital, less than the maximum €200m authorised.
Upon completion, Alabbar will hold a four per cent stake of Yoox Net-A-Porter Group.
“The expertise of Mr. Alabbar and the experience of the team in the luxury Yoox Net-A-Porter Group,” Johann Rupert, chairman of Richemont, the parent company of YNAP, said.
The Middle East region already accounts for five per cent of the global luxury consumption, a number that has been growing thanks to an increased penetration of e-commerce and other disrupting technologies.