30 August 2008

BEIRUT: The Kuwait-based Sultan Center, which recently acquired a number of supermarkets in Lebanon, announced on Friday it plans to expand its business activity in the country over the coming few years.

The announcement came during a press conference held at BEIL.

"Lebanon's political instability is a burden, but the chances for The Sultan Center (TSC) in this market are unique" Abdel-Salam Bdeir, the managing director for retail, told The Daily Star. "The Lebanese customers appreciate high standards, good service and top-quality products."

TSC, a Kuwait-based company established in 1976 with retail as its primary focus, has massive expansion plans throughout the Middle East and North Africa.

TSC said last month that it has fully acquired Lebanon's Monoprix and Geant Casino supermarkets for $97 million.

Sultan Center said that the agreement between Michel Abchi, the chairman of Admic Company, and a senior executive of Sultan Center was signed on July 28.

Admic will continue to keep BHV stores and Citi Center mall in Beirut.

The further expansion shall be achieved through organic growth but "further acquisitions are not ruled out" as Bdeir stated. The total amount of investment was not further specified. The company plans to operate with a mix of leasing and acquisition of real estate.

These plans include cooperation with Solidere. TSC will open the only wholesale market in the Beirut Souks in the first quarter of 2009. The cooperation embraces a leasing contract with planned investments of $10 million for interior design and merchandise.

TSC runs 53 stores in nine countries across the Middle East and North Africa and aims to sextuple this number within the next three to five years.

The product line-up ranges from discount markets to accommodate laggard regions with "rock bottom prices" to "Mega Markets customized to higher demands," says Bdeir. With this the company wants to meet the specific circumstances in the different parts of Lebanon.

The company's operations also encompass restaurants and catering, trading, fashion, telecommunications, security, and investments.

Observers say that the rise in the prices of oil in the region has encouraged many Gulf-based companies and investors to explore more opportunities in the Middle East, and Lebanon is one of these countries with a promising market.

Copyright The Daily Star 2008.