UAE-based Apparel Group is significantly increasing its presence in Saudi Arabia’s rapidly growing retail sector, with a focus on expanding through strategic partnerships and brand acquisitions.

CEO Neeraj Teckchandani confirmed the company's commitment to growth, highlighting new partnerships including a Memorandum of Understanding with the Red Sea Mall group’s Point Mall and the Mall of Dhahran.

The Saudi retail sector is experiencing an unprecedented wave of mall developments, with more than 30 new malls expected to open within the next five years.

Teckchandani emphasized that Saudi Arabia is a key driver of growth for Apparel Group, citing that nearly 150 of the 250 stores opened by the company in the Gulf last year were in Saudi Arabia.

As part of its expansion, Apparel Group has also acquired multiple brands and signed agreements to open new stores across fashion, beauty, home, and food sectors.

The company signed 28 new brands in 2024, including Koton, Sur La Table, Estée Lauder, and Allo Beirut, with plans to open 180 to 200 of the nearly 300 stores in the region in Saudi Arabia.

The company is also investing heavily in infrastructure, with new distribution centers planned in Dubai, Qatar, and recently completed in Saudi Arabia, alongside efforts to future-proof the sector with digital and omnichannel integrations.

In addition to its focus on physical expansion, Apparel Group is also tapping into the demand for more experiential retail, emphasizing the need for an omnichannel approach where offline and online experiences are seamlessly connected.

While geopolitical factors pose challenges, Teckchandani is optimistic about the opportunities in Saudi Arabia, noting the emergence of mega malls like the Avenues Riyadh, which will elevate the Kingdom’s retail offerings to new heights.

Despite potential future IPO plans, Teckchandani stated that an offering is not a priority in the near term, with a possible timeline of three to five years.