UAE-based Pure Gold Group will invest AED 1.2 billion (approximately US$400 million) to expand its regional operations over the next decade.
While the primary investment will be in the jewellery sector, the company will also invest AED 200 million (about US$54 million) in other sectors and in its luxury sunglasses retail chain La Moda Sunglasses, which is slated to open 150 stores by 2030, the group said in a press release.
The expansion plan is driven by confidence in the Gulf Cooperation Council (GCC) market, said Firoz Merchant, founder and chairman of Pure Gold Group.
“Despite the decline in oil prices, governments across GCC are confident of future growth and have revealed plans to further diversify from an oil-based economy. We are truly inspired by the system of governance and the solution-oriented approach of the Rulers of the GCC,” Merchant said.
“With GCC’s strategic plan to reduce its economic dependence on oil, and the recent ‘Saudi Vision 2030’ plan unveiled by the Deputy Crown Prince Mohammed bin Salman, investors and businesses in the region are strongly assured of growth and stability. As part of our expansion plan, we aim to double the current number of Pure Gold Jewellers outlets and the staff numbers in GCC, to meet anticipated future demand.”
The investment climate in the region is more favourable now with continued government support for development and infrastructure, a growing population, greater expected growth in tourism and introduction of new technologies to weather the harsh climate in the region, Merchant said.