mohammed alshaya yacht

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Transcript: Mohammed Alshaya interview

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Andrew England interviews Mohammed Alshaya, executive chairman of MH Alshaya, one of the Middle East’s largest retailing groups. Below is a full transcript of the interview.

Andrew England: State of Middle East business?

Mohammed Alshaya: As in most markets demand from consumers across the Middle East has declined. This is particularly evident in the luxury sector as consumers show more caution in their spending habits and search for greater value. Though malls continue to be popular destinations there is no doubt that the frequency of purchases has slowed down. My view is that the luxury retailers have seen their businesses decline by as much as 25 per cent.

AE: How is the Alshaya business performing across the Middle East?

MA: Given the signs of slowdown that were already appearing in the last quarter of 2008 we planned accordingly. We were not surprised by the way things have developed this year so overall we are above our expectations in terms of our half year performance. As a total business we are still experiencing single digit growth during 2009. However productivity measures were under pressure as we all geared ourselves for bigger expansion.

Some markets in the Gulf have been impacted more adversely than others. Some developers in my opinion have not acted responsibly in these circumstances and have made a difficult situation immeasurably worse by continuing to demand high rents at a time when retailers can least afford it. I would sincerely urge these developers to review this and help to create a win win partnership.

Local authorities and developers also need to be careful in my opinion. There is a real threat of oversupply. Particularly of large expensive malls. I would encourage them to look at developing smaller more accessible and convenient shopping strips that serve local consumers and put a hold on licenses given to developing larger malls.

Notwithstanding these challenges we are confident in the long term however and feel that the allure of Dubai as one of the world’s premier shopping and leisure destinations will prove once again irresistible as the global economy improves and the confidence of consumers returns.

Some markets on the other hand continue to grow healthily despite global and regional economic conditions. Our businesses in Kuwait have proved to be robust. In the Avenues shopping centre for example consumer traffic is at an all time high and sales volumes are better than last year. We are also seeing healthy growth in markets such as Lebanon and Russia

AE: What is the impact of slowdown on company investment?

MA: Clearly because of prevailing economic conditions and in some instances the cancellation or postponement of mall projects we have reduced the number of new store openings.

Nevertheless we are still on target to open up 230 stores by year end. These will be mainly in the Middle East but also across the other markets we operate in, namely Russia, central and eastern Europe and Turkey.

Next year we are already planning to open 150 stores. One exciting element of this continued growth is that a great number of these stores will introduce new and fresh brands to the markets we serve like Office Depot, Payless Shoesource, American Eagle Outfitters, Express Clothing, Pottery Barn and PF changes to name but a few. Our desire to give our consumers greater and greater choice remains as strong as ever.

In some instances we have had to close stores and lay off staff. This was to a large extent due to the brand itself having had problems in their home market. Thankfully the numbers have been small. Because of the breadth of our brands portfolio it is relatively easy for us to redeploy staff and resources to support our strongest brands which continue to grow well and as mentioned before our new ones. We have recruited more than 2700 new staff into the business so far this year.

AE: What does the future hold?

MA: There is no doubt that business will remain challenging for some time to come. The retail landscape is undoubtedly changing. Markets are being spoiled as a result of deep discounting and the liquidation of large stockpiles.

Smaller, independant and inherently weaker retailers are starting to disappear. In the face of all of this however we remain positive. As long as we stay true to our customers and continue to strive to offer better products with good value, services and shopping environments, we are confident that we can successfully navigate our way through this extremely challenging time and emerge stronger and fitter than ever with more market share.

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Mohammed Alshaali on Gulf Craft’s big ambitions

• June 2, 2021

As co-founder and Chairman of Gulf Craft, Alshaali has steadily developed the UAE shipyard into a global brand, yet by 2025 he wants it to be among the world’s top five superyacht builders, he reveals in an exclusive interview with Yacht Style.

Mohammed Alshaali co-founded Gulf Craft in 1982

With Gulf Craft turning 40 in 2022, how do you feel the company is positioned today?

In the past 40 years, we have carried the UAE flag all over the world, proudly displaying and selling our vessels as ‘Made in the UAE’. We have reached a stage where we see every marina in the world displaying a Gulf Craft boat.

We have started planning our 40th-anniversary celebrations and are looking forward to an exciting year. Our sights are set on further expansion of our product range and international presence, with an aim to be one of the top five superyacht builders by 2025.

How has the company evolved from humble beginnings to appearing regularly in the top 10 and top 20 of the Global Order Book for superyachts in recent years?

When we launched Gulf Craft in 1982, there was no marine infrastructure or skilled labour force available in the UAE. We were not able to turn to local suppliers for support.

Majesty Yachts is Gulf Craft’s flagship brand

Our shipyard is vertically integrated, which means that we manufacture almost all components of our products in-house, except for major machinery. This was borne out of necessity but became one of our greatest assets as it has allowed us to control each level of our manufacturing process and assure an optimum level of quality.

How has Covid-19 affected your business and operations?

The Covid-19 pandemic has presented many challenges as well as opportunities for us. At one point, the global supply chain had ceased completely, making it very difficult to receive materials from overseas.

Reduced manpower due to social distancing continues to be a challenge, but our operations team worked tirelessly to keep the shipyard up and running throughout the year and successfully delivered two superyachts at the height of the pandemic.

The new Majesty 175 is Gulf Craft’s biggest-ever yacht

Towards the end of 2020, we started to see demand pick up for boats and yachts of all sizes, with many people choosing boating as an ideal way to escape the confines of a lockdown. What better way to socially distance safely with your family than out on the water!

And despite the challenges of the pandemic, in late 2020 Gulf Craft proudly launched and sea-trialled our flagship Majesty 175, the world’s largest composite yacht in production today.

Which are Gulf Craft’s major regional markets?

While the Gulf remains our home and core market, over the last 10 years we have been focused heavily on our global expansion. Gulf Craft products are now proudly displayed around the world in all major markets, including Australia, Southeast Asia and the Mediterranean.

The Majesty 140 was displayed at the Fort Lauderdale show in 2019

In 2019, we began to push heavily into the United States and were honoured with the award for ‘Best in Show’ for our Majesty 140 during the Fort Lauderdale International Boat Show.

How does Asia fit into Gulf Craft’s target markets?

Gulf Craft sees Hong Kong and Southeast Asia as key markets in our global expansion strategy. We recognise a lot of growth opportunities in the region and the appointments of Farfalla Marine in Hong Kong and several Southeast Asian markets as well as B Yachts in Singapore mark important steps towards that goal.

Alongside your role as Chairman, Gulf Craft has had several changes of CEO since the departure of Erwin Bamps, from Gregory Yeakle to your daughter Abeer as Acting CEO and

now Talal Abdin Nasralla. What are the new CEO’s strengths and what are the biggest changes you hope he can implement?

Talal Abdin Nasralla, who joined the company late last year as Chief Strategy Officer, now has the mandate to implement the company’s new global growth strategy with a focus on strengthening its continued development and capabilities. He had previously been director of private banking at Barclays PLC and worked as director at Credit Suisse AG. He was also director of the Executive Office at Shuaa Capital.

Talal Nasralla, CEO of Gulf Craft

Abeer Alshaali will assume the role of Deputy Managing Director. She will extend guidance to the executive management team and oversee the expansion of the company’s network in the US, Europe and other key markets.

How do you enjoy working with your daughter, now Deputy Managing Director?

While our strategy is to continue to expand operations, move into new markets and broaden our range to fill the needs of all boaters, Gulf Craft is a family business at its core. Many members of our team have been with us for over 25 years and are instrumental in our continued growth and development.

Abeer Alshaali is now Deputy Managing Director

Abeer has been a part of the Gulf Craft family since her childhood. Boating is in her blood and she is fully prepared to fulfil my vision for the company’s future. She will also oversee the expansion of the company’s network in the US, Europe and other key markets.

How does it feel to finally launch the flagship Majesty 175?

We started building the Majesty 175 four years ago. We continued our commitment to build and produce high-quality, world-class yachts and received a great response from buyers from various regions.

Gulf Craft premieres Majesty 175 The UAE builder showed the world’s largest composite production superyacht in public for the first time at Dubai Harbour.

At 780GT, the Majesty 175 is the world’s largest composite production yacht and redefines the industry’s expectations on what can be achieved using advanced composite materials. This yacht cements Gulf Craft’s position as an industry leader in innovation and technology. We look forward to delivering the Majesty 175 to her owner, a prominent Emirati businessman, later this year.

What led Gulf Craft to focus on all-electrical systems – apart from the engines and generators – on the first Majesty 120, which was recently delivered to its owner?

At Gulf Craft we focus heavily on product development and innovation. We are committed to the environment and focusing on the future and sustainability, so we continue to introduce new technologies such as solar energy and electric propulsion.

The first Majesty 120 passes the new Ain Dubai observation wheel

Moreover, we have introduced advanced materials in our production including adding materials such as Kevlar and carbon-fibre to our building process.

Aside from your flagship brand Majesty, which of Gulf Craft’s ranges do you think has the most potential to grow in Asia?

With five brands in the portfolio building products ranging from 31-175ft, Gulf Craft manufactures yachts and boats that appeal to a wide audience such as Touring passenger vessels, Silvercraft family day boats, Oryx Sport Cruisers, Nomad explorer yachts and the flagship Majesty Yachts.

The Nomad 95 is the flagship of the Nomad range

With the diversity in Asia, there is a market for each of our products in certain regions, but I particularly see growth opportunities for the Nomad range, since they offer comfortable long-range cruising, which is ideal for exploring the region.

How do you believe the UAE has handled Covid and do you think the country is able to bounce back in the industry with the Dubai International Boat Show and Expo 2021, whenever these events can be held?

All sectors around the world have been affected by the pandemic. However, the United Arab Emirates is considered one of the top countries in terms of addressing the crisis. Considering these unprecedented circumstances, acting quickly helped support the local economy. The UAE has set an example in how to manage a crisis of global proportions.

Gulf Craft’s Oryx 379

Amid the pandemic, our main goal has been the safety of our personnel and preparing the company for future growth and development. While we always have new projects underway, much of our energy is focused on showcasing the Majesty 175. This yacht cements Gulf Craft’s position as an industry leader in innovation and technology.

Expo 2021 (currently scheduled for October 1, 2021-March 31, 2022) is a great opportunity for us to showcase Dubai, while bringing together the international community to promote innovations in sustainability and mobility. Highlighting the UAE industry and ‘Made in UAE’ products during the event will solidify the country as a frontrunner in technology and commerce.

MOHAMMED ALSHAALI

Alshaali is Chairman of Gulf Craft, which he co-founded in 1982 and developed into the Middle East’s most prolific yacht and superyacht builder. He has held many international roles including UAE’s ambassador to the USA, ambassador to the Security Council, representative at the UN European Office in Geneva, and finally Minister of State for Foreign Affairs before retiring in 2008 and dedicating himself to Gulf Craft. Its dealers in Asia include Farfalla Marine (Hong Kong, Thailand, Vietnam, Cambodia, Laos), B Yachts (Singapore, Malaysia, Indonesia) and Go Boating Thailand (for Silvercraft and Utility Series). www.gulfcraftinc.com www.farfallamarinegroup.com

Note: The original article appeared in Yacht Style Issue 59 (May-Jun 2021)

Farfalla Marine appoints new GM in HK The Gulf Craft dealer across multiple markets in Asia has appointed Jason Hawkes as its General Manager in Hong Kong.

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A collaborative research project between New York University Abu Dhabi and Tharawat Family Business Forum

Alshaya Group

Information last updated on 28 july 2022.

Family Name:

Co-Founders’ Names

Mohamad and Ali Hamoud Alshaya [1]

Earliest Documented Business Name:

Mohamad Humoud Alshaya Co. [2]

Founding Year:

Founding Location:

Saudi Arabia [4]

Current Operating Status:

Family Business Name:

Alshaya Group Trading Co. [5]

Headquarters Location:

Kuwait City, Kuwait [6]

Key Industries:

Conglomerate

Number of Employees:

53000 – 60000 [7]

ABOUT THE CO-FOUNDER

Mohamad Hamoud Alshaya was born in Al Zulfi, Najd, in Saudi Arabia around 1873; the birth of his brother Ali followed two years later. In 1876, the two brothers moved to Kuwait City with their father and settled in the Bin Hamoud neighborhood, where they grew up. Both brothers married, and Mohamad ultimately had three children — Abdul Aziz, Noura and Shaikha — while Ali had five: Salih, Abdul Latif, Munera, Hessa, and Laila. [8]

FOUNDING STORY

Accompanied by a relative, Ali headed to British India in the 1880s to seek business opportunities. He was soon traveling from the British Protectorate of Kuwait to India during trade season every year, exporting a wide variety of products. His business trips proved successful, leading him to establish a permanent shop in Bombay in 1890, which he managed together with his brother Mohamad. [9]  

In 1896, the two brothers co-founded the Alshaya Company in Kuwait, [10]  specializing in the trade of fabrics, wood, and foodstuffs [11] between Kuwait, Saudi Arabia, and India. The Alshaya Company, registered that same year, is said to be the oldest company in Kuwait. [12]

In 1931, founder Ali Alshaya handed over the management of the Indian shop to his son Salih. [13] In 1939, the family decided to send Mohamad Alshaya’s eldest son, 12-year-old Abdul Aziz, from Kuwait to India to continue his education in English. [14] Abdul Aziz studied at Saint Joseph’s School in Bombay, where he grew fond of the country, eventually leading him to join the family business operations there. [15]

Following India’s independence in 1947 and the subsequent decline of direct trade with the Gulf, [16] the Bombay shop massively downsized [17] but continued to operate on a smaller scale. [18] In 1952, Abdul Aziz left India due to a new policy that obliged foreign merchants to have Indian partners owning at least 50 percent of any company doing business in the country. [19] Upon returning to Kuwait, Abdul Aziz became a partner in and chairman of the family business, then known as the Mohamed Mahmoud Alshaya Company for General Commerce. [20] In 1956, co-founder Mohamad passed away at the age of 83. [21]

GROWTH PHASE

Following the end of the Second World War and the withdrawal of the British from Kuwait, [22] the country was able to fully capitalize on its increasing oil revenues, yielding large-scale urban and landscape transformations. [23] [24] As a well-established name in regional trade, the Alshayas were poised to benefit from the oil economy, and the 1960s saw the beginning of a long prosperous era for the family business. The company started to expand and diversify into real estate, retail, construction, and hospitality. [25]

In 1966, under the leadership of Abdul Aziz Alshaya, [26] they opened a Sheraton Hotel in Kuwait City — the first five-star hotel in the country. [27] Soon after, they brought in one of Starwood’s first hotels to open outside of North America. [28] In 1972, the company consolidated its growing portfolio and was rebranded as the Alshaya Group. [29] In the same year, co-founder Ali passed away in Damascus at the age of 91. [30]

In 1980, Mohammed Abdullatif Ali Alshaya, from the family’s third generation, joined the Alshaya Group to head the development of the M.H. Alshaya retail division, [31] leading to several key international partnerships. in 1983, the group secured its first international franchise agreement with Mothercare, [32] opening the brand’s first store in Kuwait. [33] In the late 1990s, the Alshaya Group expanded into the food and beverage industry when it partnered with Starbucks. [34]

The group also began to operate outside the Gulf, first in Türkiye in 2002, followed by Russia in 2005, Egypt in 2006, and Western Europe in 2007. [35] The company continued to expand its portfolio with the launch of multiple beauty and fashion brands. [36]

Today, Alshaya Group is led by the family’s third generation, with Mohammed Abdullatif Ali Alshaya now serving as chairman. [37] The group manages more than 70 brands across 2,800 stores in the Middle East, North Africa, Russia, Turkey, and Western Europe, employing 60,000 people. [38]

Photo Credit: Co-founder Abdualziz AlShaya (right) Sheikh Jaber Al-Sabah (Left). Source: Okaz Newspaper.

[1] “عائلة الشايع: 4 آلاف محل و60 ألف موظف.. بجهد شقيقين في.” الرجل, https://www.arrajol.com/content/188106/%D9%85%D8%A7%D9%84-%D9%88%D8%A3%D8%B9%D9%85%D8%A7%D9%84/%D8%B9%D8%A7%D8%A6%D9%84%D8%A9-%D8%A7%D9%84%D8%B4%D8%A7%D9%8A%D8%B9-4-%D8%A2%D9%84%D8%A7%D9%81-%D9%85%D8%AD%D9%84-%D9%8860-%D8%A3%D9%84%D9%81-%D9%85%D9%88%D8%B8%D9%81-%D8%A8%D8%AC%D9%87%D8%AF-%D8%B4%D9%82%D9%8A%D9%82%D9%8A%D9%86-%D9%81%D9%8A-130-%D8%B3%D9%86%D8%A9 . P. 130 Last Accessed 28 Jul. 2022

[2] Refinitiv

[3] Timeline . https://www.alshaya.com/en/about-us/timeline/ . Last Accessed 28 Jul. 2022

[4] Refinitiv

[5] Refinitiv

[6] Refinitiv

[7] Refinitiv

[8] بوك, FoulaBook-مكتبة فولة. تحميل كتاب الكويت والزلفي : هجرات وعلاقات وأسر تأليف حمد الحمد pdf . foulabook.com , https://foulabook.com/ar/book/%D8%A7%D9%84%D9%83%D9%88%D9%8A%D8%AA-%D9%88%D8%A7%D9%84%D8%B2%D9%84%D9%81%D9%8A-:-%D9%87%D8%AC%D8%B1%D8%A7%D8%AA-%D9%88%D8%B9%D9%84%D8%A7%D9%82%D8%A7%D8%AA-%D9%88%D8%A3%D8%B3%D8%B1-pdf . P. 26-31. Last Accessed 28 Jul. 2022

[9] بوك, FoulaBook-مكتبة فولة. تحميل كتاب الكويت والزلفي : هجرات وعلاقات وأسر تأليف حمد الحمد pdf . foulabook.com , https://foulabook.com/ar/book/%D8%A7%D9%84%D9%83%D9%88%D9%8A%D8%AA-%D9%88%D8%A7%D9%84%D8%B2%D9%84%D9%81%D9%8A-:-%D9%87%D8%AC%D8%B1%D8%A7%D8%AA-%D9%88%D8%B9%D9%84%D8%A7%D9%82%D8%A7%D8%AA-%D9%88%D8%A3%D8%B3%D8%B1-pdf .  P. 26-31. Last Accessed 28 Jul. 2022

[10] Abu Taymour, بقلم: د. عبدالله المدني-أستاذ العلاقات الدولية في مملكة البحرين. “عبدالعزيز الشايع.. ذاكرة كويت ما قبل النفط وبعده.” Okaz , 20 Dec. 2020, https://www.okaz.com.sa/specialized-corners/na/2052104 . Last Accessed 28 Jul. 2022

[11] Abu Taymour, بقلم: د. عبدالله المدني-أستاذ العلاقات الدولية في مملكة البحرين. “عبدالعزيز الشايع.. ذاكرة كويت ما قبل النفط وبعده.” Okaz , 20 Dec. 2020, https://www.okaz.com.sa/specialized-corners/na/2052104 . Last Accessed 28 Jul. 2022

[12] Timeline . https://www.alshaya.com/en/about-us/timeline/ . Last Accessed 28 Jul. 2022

[13] Alrai-media. “Al Rai – the newspaper.” Alrai-media , Alrai-media, https://www.alraimedia.com/ . Last Accessed 28 Jul. 2022

[14] Abu Taymour, بقلم: د. عبدالله المدني-أستاذ العلاقات الدولية في مملكة البحرين. “عبدالعزيز الشايع.. ذاكرة كويت ما قبل النفط وبعده.” Okaz , , https://www.okaz.com.sa/specialized-corners/na/2052104 . Last Accessed 28 Jul. 2022

[15] Abu Taymour, بقلم: د. عبدالله المدني-أستاذ العلاقات الدولية في مملكة البحرين. “عبدالعزيز الشايع.. ذاكرة كويت ما قبل النفط وبعده.” Okaz , https://www.okaz.com.sa/specialized-corners/na/2052104 . Last Accessed 28 Jul. 2022

[16] Mangold, Peter. Britain and the Defence of Kuwait 1956-71 . 2009 https://www.tandfonline.com/doi/pdf/10.1080/03071847509420849?casa_token=JDOXUMGTcVsAAAAA:IZUJ3S0Ge7hCXGb-ZfE-eK2949KrsAJBez_eiXRwfR_J6HRM7rLG9rxk-9Cm4AuuwuyKhtbi5A . Last Accessed 28 Jul. 2022

[17] بوك, FoulaBook-مكتبة فولة. تحميل كتاب الكويت والزلفي : هجرات وعلاقات وأسر تأليف حمد الحمد pdf . foulabook.com , https://foulabook.com/ar/book/%D8%A7%D9%84%D9%83%D9%88%D9%8A%D8%AA-%D9%88%D8%A7%D9%84%D8%B2%D9%84%D9%81%D9%8A-:-%D9%87%D8%AC%D8%B1%D8%A7%D8%AA-%D9%88%D8%B9%D9%84%D8%A7%D9%82%D8%A7%D8%AA-%D9%88%D8%A3%D8%B3%D8%B1-pdf . P. 26-31. Last Accessed 28 Jul. 2022

[18] Abu Taymour, بقلم: د. عبدالله المدني-أستاذ العلاقات الدولية في مملكة البحرين. “عبدالعزيز الشايع.. ذاكرة كويت ما قبل النفط وبعده.” Okaz , 20 Dec. 2020, https://www.okaz.com.sa/specialized-corners/na/2052104 . Last Accessed 28 Jul. 2022

[19] Abu Taymour, بقلم: د. عبدالله المدني-أستاذ العلاقات الدولية في مملكة البحرين. “عبدالعزيز الشايع.. ذاكرة كويت ما قبل النفط وبعده.” Okaz , 20 Dec. 2020, https://www.okaz.com.sa/specialized-corners/na/2052104 . Last Accessed 28 Jul. 2022

[20] “Abdulaziz Mohamed Mahmoud Alshaya.” KRCS Website , https://www.krcs.org.kw//about-us/founders/abdulaziz-mohamed-mahmoud-alshaya . Last Accessed 28 Jul. 2022

[21] بوك, FoulaBook-مكتبة فولة. تحميل كتاب الكويت والزلفي : هجرات وعلاقات وأسر تأليف حمد الحمد pdf . foulabook.com , https://foulabook.com/ar/book/%D8%A7%D9%84%D9%83%D9%88%D9%8A%D8%AA-%D9%88%D8%A7%D9%84%D8%B2%D9%84%D9%81%D9%8A-:-%D9%87%D8%AC%D8%B1%D8%A7%D8%AA-%D9%88%D8%B9%D9%84%D8%A7%D9%82%D8%A7%D8%AA-%D9%88%D8%A3%D8%B3%D8%B1-pdf . P. 26-31. Last Accessed 28 Jul. 2022

[22] von Bismarck, Helene. The Kuwait Crisis of 1961 and Its Consequences for Great Britain’s Persian Gulf Policy . https://www.helenevonbismarck.com/wp-content/uploads/2018/01/von-Bismarck_Kuwait-Crisis.pdf . Last Accessed 28 Jul. 2022

[23] Al-Nakib, Farah. Kuwait’s Modernity Between Memory and Forgetting (Introduction to Acquiring Modernity Booklet Accompanying the Kuwait Pavilion at La Biennale Di Venezia’s 14th International Architecture Exhibition) . www.academia.edu . https://www.academia.edu/8186917/_Kuwaits_Modernity_Between_Memory_and_Forgetting_Introduction_to_Acquiring_Modernity_booklet_accompanying_the_Kuwait_Pavilion_at_La_Biennale_di_Venezias_14th_International_Architecture_Exhibition_ . P.7. Last Accessed 28 Jul. 2022

[24] Art Papers – Alia Farid . 21 Feb. 2015, https://web.archive.org/web/20150221184242/http://aliafarid.net/Art-Papers . Last Accessed 28 Jul. 2022

[25] Timeline . https://www.alshaya.com/en/about-us/timeline/ . Last Accessed 28 Jul. 2022

[26] “The Empire That Kuwaiti Retail Pioneer Abdulaziz Mohammed Al-Shaya Built.” Arab News . https://arab.news/484gb . Last Accessed 28 Jul. 2022

[27] Our Members . https://www.khoahotels.com.kw/en/OurMembers/MemberDetails/17?PageID=9 . Last Accessed 28 Jul. 2022

[28] “Starwood Increases Long Established Lead in the Middle East.” Hospitality Net , https://www.hospitalitynet.org/news/4049775.html . Last Accessed 28 Jul. 2022

[29] Refenitiv

[30] بوك, FoulaBook-مكتبة فولة. تحميل كتاب الكويت والزلفي : هجرات وعلاقات وأسر تأليف حمد الحمد pdf . foulabook.com , https://foulabook.com/ar/book/%D8%A7%D9%84%D9%83%D9%88%D9%8A%D8%AA-%D9%88%D8%A7%D9%84%D8%B2%D9%84%D9%81%D9%8A-:-%D9%87%D8%AC%D8%B1%D8%A7%D8%AA-%D9%88%D8%B9%D9%84%D8%A7%D9%82%D8%A7%D8%AA-%D9%88%D8%A3%D8%B3%D8%B1-pdf.P.26-31 . Last Accessed 28 Jul. 2022

[31] “Mohammed Alshaya Is Part of the BoF 500.” The Business of Fashion , https://www.businessoffashion.com/community/people/mohammed-alshaya . Last Accessed 28 Jul. 2022

[32] “Mohammed Alshaya Is Part of the BoF 500.” The Business of Fashion , https://www.businessoffashion.com/community/people/mohammed-alshaya . Last Accessed 28 Jul. 2022

[33] Timeline . https://www.alshaya.com/en/about-us/timeline/ . Last Accessed 28 Jul. 2022

[34] Timeline . https://www.alshaya.com/en/about-us/timeline/ . Last Accessed 28 Jul. 2022

[35] Timeline . https://www.alshaya.com/en/about-us/timeline/ . Last Accessed 28 Jul. 2022

[36] Timeline . https://www.alshaya.com/en/about-us/timeline/ . Last Accessed 28 Jul. 2022

[37] Refenitiv

[38] “The Empire That Kuwaiti Retail Pioneer Abdulaziz Mohammed Al-Shaya Built.” Arab News . https://arab.news/484gb . Last Accessed 28 Jul. 2022

“Alshaya Group” Family Business Histories Research Project, New York Unviersity Abu Dhabi and Tharawat Family Business Forum, 20 Mar. 2023, familybusinesshistories.org/spotlights/alshaya

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Mohammed Alshaya

Executive Chairman, Alshaya

A name synonymous with retail in the Gulf region, he has opened stores for Western retail brands like H&M and Topshop and holds the license for Harvey Nichols in Kuwait.

As executive chairman of the retail division of the Alshaya Group, a multi-division conglomerate based in Kuwait, Mohammad Alshaya oversees one of the largest retail distribution businesses in the Gulf, North Africa and Eastern European regions. Operated through M.H. Alshaya Co, the group holds the exclusive franchise agreements with high-street brands such as Topshop, Topman, Warehouse, Coast, Oasis, COS and Victoria’s Secret, as well as numerous restaurant and lifestyle chains. In January 2012, the group expanded its activities to the United Kingdom, purchasing sixty outlets of lingerie chain La Senza and in 2013 announced a joint agreement with the owners of Doha Festival City, a luxury shopping complex located in Qatar’s capital city, to operate more than fifty stores on completion of its construction.

Alshaya began his career in retail with a three month work placement with UK-based chain store Mothercare in the late 70s. The young executive joined the Alshaya group on his return to Kuwait in 1980, putting his experience with Mothercare into use by developing the M.H. Alshaya retail division. In 1983 Alshaya secured the group’s first franchise agreement with Mothercare, steadily increasing the group’s portfolio to a current count of over seventy different brands.

Alongside being listed as one of the "Top 100 Powerful Arabs" in 2013 by Gulf Business, Alshaya has been awarded the accolade of "Business Man of the Year" by the Arabian Business Awards in both 2011 and 2012. He was also named one of the "GCC 100 Inspiring Leaders 2019" by Arabian Business. In June 2013 he received honours from the "Kuwait Says Thank You" campaign as one of the leading innovative executives within the country. The retail mogul has also been awarded an honorary CBE by the British Queen, in recognition of his role in strengthening Arab-British relations.

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M.H. Alshaya: The mystery company importing Americana to the Mideast

FORTUNE — David Overton makes a point of trying to get to every one of his restaurant openings. In the 35 years since he founded the Cheesecake Factory in Beverly Hills, only a handful have kicked off without his discerning eye. So it surprised no one when Overton decided to travel halfway around the world for the Kuwait City launch of the 160th Cheesecake Factory.

Overton’s presence made this event just like every Cheesecake Factory opening. Indeed, it was Overton’s directive to his team that this launch and, more important, this restaurant be treated like any other. The tables were set exactly as they are in the U.S., the forks slightly staggered. The usual artist had designed the decorative murals featuring themes of mythology, history, and astronomy. The portions and the waiting times were just as abundant. “It feels like a Cheesecake, and it tastes like a Cheesecake,” says Heather Berry, director of beverage and bakery operations, who had traveled over for the launch.

Beneath the surface, though, restaurant No. 160 was dramatically different. Publicly held Cheesecake Factory (CAKE), known in the industry for its consistency and Overton’s attention to detail , owns all its restaurants in the U.S. But the Kuwait City outpost is licensed to M.H. Alshaya Co., a Kuwait-based group operating in 19 countries with more than 70 brands in its portfolio. In January 2011 the two companies signed a deal that allowed Alshaya to open 22 Cheesecake Factories over five years in the United Arab Emirates, Kuwait, Saudi Arabia, Bahrain, and Qatar. (Two Dubai locations opened in 2012.)

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You may have never heard of M.H. Alshaya, which is exactly how the intensely private company likes it. Formed some 30 years ago by members of Kuwait’s Alshaya family, including current executive chairman Mohammed Alshaya, the retail-franchising operation manages dozens of international brands and thousands of stores. The closely held business declines to disclose any financial information, and executives rarely speak with the media, saying they prefer to let their brands and properties speak for themselves. And oh, what brands: Starbucks (SBUX), Pinkberry, IHOP (DIN), American Eagle Outfitters (AEO), Victoria’s Secret (LTD), Pottery Barn, and Williams-Sonoma (WSM) — all are mainstays in the Middle East thanks to Alshaya.

These retailers and many more are increasingly drawn to the region because of its well-heeled population of expats and globetrotting locals. (Qatar, Kuwait, and the UAE rank among the world’s top 20 countries in GDP per capita.) There also are few homegrown competitors to fend off; in fact, consumers in the Middle East seek out Western brands because they crave authentic American experiences.

But Kuwait City isn’t Kansas, and to bring a taste of the U.S. to places such as the UAE, multinationals need a local guide to help them navigate the cultural, religious, and regulatory protocols of the region. That’s where Alshaya comes in. Like many franchisees, Alshaya handles basics such as scouting locations and negotiating leases; it hires and manages employees who come from 110 different countries; and crucially, it helps eateries modify their menus to comply with Islamic dietary laws. As I discovered when I traveled to Kuwait City for a behind-the-scenes look at the Cheesecake Factory’s opening in November, bringing a Western restaurant chain to the Middle East is an exercise in patience, creativity, and strong execution. It also involves tasting a lot of food.

All roads lead to the mall in this part of the world. Over the past two decades, shopping culture in the Gulf region has migrated from the outdoor marketplace, the souk, to the destination megamall that sits at the center of social life. You can escape from the oppressive heat, browse brands from Armani to Zara , ski and ice-skate indoors, and visit one of the world’s largest aquariums. “When Alshaya told us, ‘You’re going to go in malls in the Middle East,’ we looked at them and said, ‘You don’t understand. We’re a cool New York urban brand. We don’t do malls,’ ” explains Randy Garutti, CEO of Shake Shack, based in New York City. “Then you witness it. The mall there is the piazza. It is the Union Square.” Garutti didn’t have to worry about whether the concept would translate. When Shake Shack , part of Danny Meyer’s Union Square Hospitality Group, announced plans to open in Kuwait, its Miami Beach location became a hotspot for Kuwaitis scoping it out on spring break. The Cheesecake Factory was also coveted by Middle Eastern consumers. For five years the restaurant ranked No. 1 in a quarterly survey asking patrons which American restaurant concept they’d like to see in the Dubai Mall, Overton says. When the restaurant opened there in August, it touted the line “The wait is over.”

Retailers who take the plunge into the Gulf are often rewarded with some of the best-performing stores in their systems. Take Scottsdale-based P.F. Chang’s: Three of its top-10 restaurants by sales are in the Middle East. With relatively small populations — Kuwait has just 2.8 million residents — the region’s blowout figures come with not only higher transactions but also a greater frequency of store visits.

Alshaya is the driving force behind much of the brand migration. “We are a willing investor, an aggressive investor,” Mohammed Alshaya tells me during my visit to Kuwait City. He had just finished touring the newly opened section of the Avenues mall with the U.S. ambassador to Kuwait; earlier that day he had cut the ribbon at the Cheesecake Factory opening with CEO Overton.

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The Alshaya group of companies’ history dates back to 1890 and includes interests in real estate, construction, and hotels in the Middle East. In recent years the 30-year-old retail-franchising operation has started expanding beyond its Gulf region roots. In January 2012, Alshaya acquired 60 stores of lingerie shop La Senza in the U.K., and in 2007, Starbucks opened in Russia with Alshaya as its partner. “We had already established a great partnership with them” in the Middle East, explains Michelle Gass, president of Europe, the Middle East, and Africa for Starbucks. “The core skills they bring to the table — they believed they could translate that into Russia.”

International restaurant companies tried to woo the Cheesecake Factory for years, but Overton felt that the restaurant’s complexities made it hard to license. He wasn’t sure that he would ever feel comfortable taking his company global. It wasn’t until meeting Alshaya that Overton thought that an international partnership might work. Alshaya paid a visit to Overton in California and offered to show him around personally if he came to the region. In May 2010 Alshaya went with him to Bahrain, Kuwait, Qatar, and the UAE, showing him malls, where Overton was most struck by how closely stores mimicked their counterparts in the States. “I walked into Pottery Barn, and there’s no way you could tell that it wasn’t [the U.S.],” Overton tells me.

Alshaya’s core competency is cloning, replicating, duplicating — a sampling of the terms I heard used during my trip. The day the company launches a brand in the Middle East, it starts with the assumption that the retail experience will be identical to what a customer encounters in the U.S. Alshaya has no desire to reinvent; rather, it tries to understand a retailer’s core and reproduce it. Still, Alshaya makes appropriate tweaks when necessary. The most common changes stem from compliance with Islamic dietary laws. Serving a cake made with gelatin? It must be extracted according to halal guidelines. Other alterations are made to match regional tastes. At Shake Shack, you won’t find its pumpkin-pie frozen custard on the menu — customers may not be familiar with the flavor. More shower items than bath products line the shelves at Bath & Body Works because there’s a preference for bathing in running water. At Pottery Barn Kids, the chairs on display are personalized with Jaber rather than Max.

The process of creating uniformity across a brand is never easy in the restaurant business. Chains can copy aesthetics with little difficulty; it is much harder to get food to taste exactly the same every day in every location. One of the most fanatical guys in the industry when it comes to standardization is Overton. If you order his Over the Top Meatloaf Sandwich, covered in Guinness-marinated Swiss cheese and tomato-bacon jam, it should taste exactly the same in Boca Raton as in Phoenix or in Honolulu. When Overton decided to bring his brand to the Middle East, he insisted that his meat-loaf sandwich and the rest of the menu taste the same in Kuwait City and Dubai as well. The Cheesecake Factory did the initial work to make the recipes comply with Muslim dietary practices, and then reviewed the changes with Alshaya. So now that meat loaf had to taste exactly the same using halal beef, sans Guinness marinade and pork bacon in the topping.

Cheesecake Factory chief culinary officer Donald Moore’s initial reaction was alarm — especially when it came to limitations on pork. “I love bacon,” he says. “We put bacon in our salads and on our burgers and sandwiches.” He took a reconnaissance trip to the region, eating bacon everywhere. “I ate veal bacon, turkey bacon, beef bacon, you name it,” he says. The issue wasn’t just about taste. A lot of the bacons were jerky-like and lacked the texture of pork. Once his team found the right consistency, it matched the sweetness and smokiness, ending up with a beef bacon that Moore loves.

When it came to alcohol, some menu items needed only a simple fix. The cheese for the meat loaf, for example, now gets marinated in nonalcoholic beer. Some of the other substitutes were harder to come by. The Cheesecake Factory’s No. 1-selling item in the U.S. is Chicken Madeira, which calls for the eponymous wine. Moore’s team created gastriques — caramelized sugar with vinegar — to duplicate the flavor profile.

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Every item had to pass Overton’s muster to make it onto the menu. (“I don’t believe in focus groups,” he explains. “I’m kind of our one-man focus group.”) It took Moore’s team a year to find a replacement for miso, which contains alcohol, before Overton gave the miso salmon his okay. Some items, like the tiramisu and Kahlua cheesecake, couldn’t be copied to the Cheesecake Factory’s standards. “We worked for months replicating the cheesecakes that we have, and doing it without alcohol,” says Berry, who runs bakery and beverages.

The afternoon before the Kuwait opening, I went out to the Avenues mall to talk to Scott Thomas, the Cheesecake Factory’s area director of operations. “My goal tomorrow is to make sure every guest that comes in here thinks that they’re in our brand in the United States, that there’s no difference,” he says. The biggest challenge for Thomas was the global nature of the staff. Many don’t speak English as a first language and were unfamiliar with the restaurant’s concept at first. Overton told me that he had talked to an employee from Russia who admitted that she was worried she was going over to Kuwait only to be exploited. She had thought she was literally coming to work at a cheesecake factory.

To help bridge the cultural and language gap, training went back to basics. Instruction ranged from the literal — making sure the wait staff knew that the Caramel Pecan Turtle Cheesecake didn’t actually contain turtle — to the figurative. One of the restaurant’s most popular salads is the Luau Salad, but many of the new hires didn’t know what a luau was. “It’s not the end of the world, but we wanted them to have a full understanding [of] why this salad looks the way it does,” Thomas says. “It’s a Hawaiian celebration in a bowl.”

For three days before the Kuwait City opening, the Cheesecake Factory held its “mocks” — a dress rehearsal for opening day, which the restaurant chain does before every launch. About 80 designated trainers had been brought over from the U.S. to work alongside the newly hired Alshaya staff. These test runs offer the chance to work out the kinks. “We’ve been cooking and eating and eating and eating, and that’s all I’ve done for the last two days,” Moore tells me. As a result of the sampling, Moore realized that a wine-free mustard in the herb-crusted salmon had failed to give him the perfect note. He needed to find a replacement mustard, so he bought every Dijon on the shelf at Dean & Deluca, another food retailer Alshaya brought to the region.

It wasn’t the only improvising he would do that week. Some ingredients that the Cheesecake Factory imports hadn’t made it over in time. Fresh corn had missed a flight. A special dough flour got stuck in another part of Kuwait, so tamale cakes were taken off the menu. “If we can get something local that would be the same or better, we would serve it,” Moore says. Berry was waiting for a couple of juices that hadn’t made the boat. She had come up with a backup recipe using a local fresh juice in case the shipment didn’t arrive, but she was reluctant to hand it out. With all that the staff already had to learn, she didn’t want to further complicate their training.

Sourcing will only become more complicated as the restaurant chain’s expansion continues. Lebanon, for example, requires that imported products come directly from their country of origin; if the Cheesecake Factory uses shrimp from Mexico, the shellfish must come to Lebanon directly from Mexico.

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The team had a sense of what to expect in Kuwait thanks to its Dubai Mall launch in August. The restaurant opened during Ramadan in order to be ready for Eid, the celebration marking the end of the month of fasting. Like its location in Kuwait, the first Dubai Cheesecake Factory sits on prime real estate, in this case across from an aquarium. At opening, the wait for a table stretched to more than 150 names (large parties had to wait as long as three hours), and mall security eventually made the restaurant set up stanchions for crowd control.

Every customer was ordering cheesecake, with dessert making up 25% of sales. Berry had to write a whole new policy and procedure for handling the cheesecake mania. “It looked like I was writing a line of scrimmage,” she says. “I had X’s and O’s and seven bodies.” “Mocktails” and bottled water were so popular that beverages as a percentage of sales matched those in the U.S. — amazing considering the absence of liquor sales in Dubai. The Cheesecake Factory says every Alshaya-licensed restaurant open for a year represents a penny in earnings per share, which translates into about half a million dollars in profit. Analysts expect the company to report about $1.8 billion in revenue and $105 million in profits in 2012. A third Middle East location, the largest Cheesecake Factory in the world, opened in Dubai on New Year’s Eve.

I ate most of my meals on the trip at the Cheesecake Factory with Donald Evans, the company’s genial chief marketing officer. He worked his way through ordering a long list of items that he and his colleagues thought I should sample — primarily dishes that had been tweaked for the market, like Chicken Madeira, Chicken Piccata, and Herb Crusted Filet of Salmon. (Evans judiciously had only a bite or two of each dish, and I eventually caught on.)

There is something a bit odd about spreading this part of American culture around the world — the desserts, the burgers, the hefty portions. But when I got back to the U.S. and went to my local Cheesecake Factory, I couldn’t help being impressed by how flawlessly Alshaya and its partners do it. Everything was nearly identical: the friendly service, the lighting — even the restaurant’s neighbors (Victoria’s Secret, Express, Bath & Body Works). But I was most focused on the food. I wanted to compare a sampling of menu items to what we had eaten in Dubai and Kuwait. And so, in the name of research, I tucked into White Chocolate Raspberry Truffle Cheesecake, Shrimp Scampi, and Hawaiian Pizza.

While I can’t claim to have a particularly discerning palate, the food tasted exactly the same. The real moment of truth came when my server brought out the Chicken Madeira. One forkful, and I felt like I was transported to Kuwait.

This story is from the February 25, 2013 issue of  Fortune .

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Top 100 Arabs 2024

42. Mohammed Alshaya

Executive chairman, alshaya group.

Origin: Kuwait

Residence: Kuwait

Sector: Retail

2023 Rank: 42

Alshaya has played a pivotal role in propelling the growth and expansion of the Kuwait-based conglomerate across MENA and Europe. With roots tracing back to 1890, the group now operates a diverse portfolio of over 70 brands, including household names such as Mothercare, Starbucks, Cheesecake Factory, and Victoria’s Secret, spanning the MENA region and Europe. In a demonstration of corporate social responsibility, the company partnered with the Starbucks Foundation and Starbucks Corporation to contribute around $1m towards earthquake relief efforts in Türkiye.

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