Chalhoub Group and Jafza: Partners in Growth and Trust

Since 1990, Chalhoub Group has been using the free zone’s support, its unique features and efficient logistics for the success of operations in the Middle East and beyond

Chalhoub Group, a prominent retail giant for luxury goods in the Middle East with a history of over 60 years, and Jafza boast a unique strategic partnership. The Group General Counsel Ramzi Modad and the Country Manager – UAE Nasser AlBlooshi touch on the most significant aspects of cooperation between the enterprise and the free zone.

When One Door Closes, Another Opens

In the 1990s, Chalhoub Group sought a new headquarters after the Kuwait invasion and turned to Dubai’s global trade centre as a promising prospect. Jafza caught the group’s attention and was warmly received by Sultan Ahmed Bin Sulayem, who shared the future vision of the free zone as a business incubator for their plans. Hundred per cent corporate ownership for foreign investors, a unique feature in the region, and ease of conducting business and constructing stores and warehouses made Jafza a perfect choice for the conglomerate.

Partners, Not Clients

Describing the relationship between Chalhoub Group and Jafza, Modad said, “The most prominent aspect that caught the attention of the group was the perfect partnership with the leadership of the free zone.”
“The group’s directors consistently attended Jafza’s leadership meetings to express Chalhoub’s points of view. As a result, the group felt welcome and comfortable. Our buildings became icons of beauty and splendour, and we also found stability and a permanent relationship that every entrepreneur craves in a business environment,” he added.

For his part, AlBlooshi said: “We at Chalhoub Group used to receive investors, intending to establish their business in Jafza. We are very proud of the trust that the free zone placed in us. Their support helped in expanding and growing our business across the globe.”

Cutting Costs without Cutting Corners

AlBlooshi explained the nature of the group’s operations, regarded as one of the largest retailers in the region for the most prestigious international brands of beauty and fashion products. The group imports its products from several European countries and the USA to re-export them to the Middle East, courtesy of its modern, air-conditioned warehouses in Jafza. From there, the products go to more than 650 stores in more than 14 countries.

“Retail business involves complicated operations and dealing with intricate international supply chains. That means we must work with trusted and reliable entities and organisations, and Jafza is the best in this regard. Their integrated system of multi-channel trade connections enhances convenience,” AlBlooshi explained.

Modad conveyed his appreciation for the operational methods of Jafza. “We can easily fulfil all the company’s needs through one platform, such as requests, procedures, permits, visas, labour contracts, custom procedures, etc. Consequently, we feel more at ease and confident in our ability to improve the quality and capacity of our operations, while also reducing costs.”

Speed is the Most Precious Gift

On the importance of speed that the superior logistics system of Jafza and Jebel Ali Port provide, Modad said: “A container does not take, on average, more than 48 hours to be in our warehouses, and it may reach us in less than 24 hours as well. This quick clearance and delivery mechanism is an important contributor to our success. It allows us to guarantee the presence of our products on the shelves on time so that the customers can relish the joy of every special occasion with each package they open, for example, the Eid.

Since we offer our services in multicultural markets, this swift process helps us keep pace with the demands of every event, season and holiday throughout the year.

Embracing Technology for Growth

AlBlooshi stressed the importance of technology in Chalhoub Group’s recent expansion post-COVID, highlighting the transformation of the firm’s business model due to the pandemic.

“Before COVID-19, we had only eight e-commerce websites. However, because of the global lockdowns due to the pandemic, we came up with a comprehensive strategy to rigorously adopt e-commerce. Currently, the number of e-stores operated by the group has reached more than 80. The attainment was made possible through the incorporation of Jafza’s intelligent digital trade framework,” said AlBlooshi.

Chalhoub Group recently ranked first for workplace gender equality in the Middle East. Furthermore, the group was classified by LinkedIn among the top five best work environments in the UAE, and one of the best retailers for luxurious products in the MENA region.