Retailer GMG opens new Saudi HQ in Riyadh, plans to hire 1,200 new employees
April 7, 2021, 9:58 am

Retailer GMG opens new Saudi HQ in Riyadh, plans to hire 1,200 new employees

A stock image of Saudi Arabia's Riyadh skyline. (File photo)

Regional retail conglomerate Gulf Marketing Group (GMG) has announced further expansion and investment in Saudi Arabia with the opening of a new head office in Riyadh, the company said. Deputy Chairman and CEO Mohammad A. Baker told Al Arabiya English that the company plans to double its 1,200-strong workforce in the Kingdom.

GMG already has a strong presence in Saudi Arabia due to its nationwide network of approximately 90 outlets including its Sun and Sand Sports chain - the Middle East’s largest sports retailer - as well as being a distributor for global brands like Nike, Columbia, Vans, and others.

GMG’s head office in Riyadh follows a government announcement in February that stated that Saudi Arabia will require all government contracts to be awarded to companies with headquarters in the country. It will no longer sign contracts with foreign companies without a regional headquarters inside the Kingdom starting from 2024.

The move is one facet of a wider strategy to attract international investors to one of the Middle East’s largest economies and diversify it from its oil-heavy roots, as outlined in the Crown Prince’s Vision 2030.

The new Riyadh HQ opened last month and the group anticipates further growth from its sports retail operations, Baker said. Boosted by its recent opening of a 23,000 square-meter mega-warehouse outside Riyadh, this is complemented by existing office and warehousing facilities in Jeddah.

“Saudi Arabia is a very important market to us with a fast-growing economy,” Baker told Arabiya English. “There is a lot we believe we can deliver and the importance of sport in the Kingdom is encouraging, thanks to the vision of Saudi Crown Prince Mohammed bin Salman and a growing number of initiatives to improve fitness and wellness.”

View of the Kingdom Tower from inside The Globe of the Faisaliah Centre, downtown Riyadh, Saudi Arabia. (Illustrative photo: iStock)

GMG has already spent 15 years establishing its business in Saudi, building up a workforce of 1,200. Baker envisions this number will soon grow to 2,400.

“Having a regional HQ in Saudi is an important move for us, and one which we planned to do before the lockdown and before the announcement by the Kingdom,” he said.

“Saudi is very good for business; it has a massive population and it has always been a key market for us. Having a regional HQ in Saudi allows us to understand the consumer better, train people more efficiently and have the right presence in Saudi.”

Baker said, aside from establishing warehouses and stores in the Kingdom, GMG plans to enhance partnerships with Saudi Arabian entities to encourage sports participation.

The pandemic, believes Baker, has encouraged more people to embrace sport, fitness and wellbeing as health has become an ever-important factor in peoples’ lives.

Introducing other offerings from the GMG portfolio in Saudi Arabia, including food and healthcare brands, is also being considered, Baker said.

Meanwhile, the company is strengthening its online retail services and hosting more in-store innovations such as contactless mobile checkouts in response to changing consumer habits post-COVID-19.

“The fact that our new Riyadh headquarters is three times bigger than our old offices clearly signals the scale of our ambitions in Saudi Arabia and our commitment to invest – not only in brick-and-mortar operations but also in our people, over half of whom are Saudi citizens,” said Baker.

“Next year, we celebrate 15 years in Saudi Arabia, and strengthening our presence in the Kingdom is essential if we are to realize the next phase of our growth in the region’s largest economy and one of the fastest-growing retail markets.”

“We believe Saudi Arabia has immense untapped potential. The government’s recent initiative calling upon the international private sector to further invest in the Kingdom is to be welcomed, particularly because it will pave the way for further job creation.”

According to a recent Euromonitor report, sales of premium sports brands such as Nike performed strongly towards the end of last year in Saudi Arabia, and this trend is set to continue with consumer spending expected to rebound quickly once the social restrictions imposed by the pandemic start to ease.

Baker added that the group is eager to ramp up its community engagement in Saudi Arabia.

GMG Deputy Chairman and CEO Mohammad A. Baker (Supplied)

As the official Nike distributor in the Kingdom, GMG already works closely with the Saudi Sports for All Federation (SFA) to promote participation in sports at all levels, and more active lifestyles in a country where diabetes and obesity rates exceed the global average.

“Steady progress has been made over the past decade, but there is much more to be done and we are eager to be a partner, working with young people especially, to make regular exercise part of their daily routine,” said Baker.

source: Jennifer Bell

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BENEFIT, the Kingdom’s innovator and leading company in Fintech and electronic financial transactions service, held its Annual General Meeting (AGM) at the company’s headquarters in the Seef District.
During the meeting, shareholders approved all items listed on the agenda, including the ratification of the minutes of the previous AGM held on 26 March 2024. The session reviewed and approved the Board’s Annual Report on the company’s activities and financial performance for the fiscal year ended 31 December 2024, and the shareholders expressed their satisfaction with the company’s operational and financial results during the reporting period.
The meeting also reviewed the Independent External Auditor’s Report on the company’s consolidated financial statements for the year ended 31 December 2024. Subsequently, the shareholders approved the audited financial statements for the fiscal year. Based on the Board’s recommendation, the shareholders approved the distribution of a cash dividend equivalent to 10% of the paid-up share capital.
Furthermore, the shareholders endorsed the allocation of a total amount of BD 172,500 as remuneration to the members of the Board for the year ended 31 December 2024, subject to prior clearance by related authorities.
The extension of the current composition of the Board was approved, which includes ten members and one CBB observer, for a further six-month term, expiring in September 2025, pending no objection from the CBB.
The meeting reviewed and approved the Corporate Governance Report for 2024, which affirmed the company’s full compliance with the corporate governance directives issued by the CBB and other applicable regulatory frameworks. The AGM absolved the Board Members of liability for any of their actions during the year ending on 31st December 2024, in accordance with the Commercial Companies Law.
In alignment with regulatory requirements, the session approved the reappointment of Ernst & Young (EY) as the company’s External Auditors for the fiscal year 2025, covering both the parent company and its subsidiaries—Sinnad and Bahrain FinTech Bay. The Board was authorised to determine the external auditors’ professional fees, subject to approval from the CBB, and the meeting concluded with a discussion of any additional issues as per Article (207) of the Commercial Companies Law.
Speaking on the company’s performance, Mr. Mohamed Al Bastaki, Chairman BENEFIT , stated: “In terms of the financial results for 2024, I am pleased to say that the year gone by has also been proved to be a success in delivering tangible results. Growth rate for 2024 was 19 per cent. Revenue for the year was BD 17 M (US$ 45.3 Million) and net profit was 2 Million ($ 5.3 Million).

Mr. Al Bastaki also announced that the Board had formally adopted a new three-year strategic roadmap to commence in 2025. The strategy encompasses a phased international expansion, optimisation of internal operations, enhanced revenue diversification, long-term sustainability initiatives, and the advancement of innovation and digital transformation initiatives across all service lines.
“I extend my sincere appreciation to the CBB for its continued support of BENEFIT and its pivotal role in fostering a stable and progressive regulatory environment for the Kingdom’s banking and financial sector—an environment that has significantly reinforced Bahrain’s standing as a leading financial hub in the region,” said Mr. Al Bastaki. “I would also like to thank our partner banks and valued customers for their trust, and our shareholders for their ongoing encouragement. The achievements of 2024 set a strong precedent, and I am confident they will serve as a foundation for yet another successful and impactful year ahead.”
Chief Executive of BENEFIT; Mr. Abdulwahed AlJanahi commented, “The year 2024 represented another pivotal chapter in BENEFIT ’s evolution. We achieved substantial progress in advancing our digital strategy across multiple sectors, while reinforcing our long-term commitment to the development of Bahrain’s financial services and payments landscape. Throughout the year, we remained firmly aligned with our objective of delivering measurable value to our shareholders, strategic partners, and customers. At the same time, we continued to play an active role in enabling Bahrain’s digital economy by introducing innovative solutions and service enhancements that directly address market needs and future opportunities.”
Mr. AlJanahi affirmed that BENEFIT has successfully developed a robust and well-integrated payment network that connects individuals and businesses across Bahrain, accelerating the adoption of emerging technologies in the banking and financial services sector and reinforcing Bahrain’s position as a growing fintech hub, and added, “Our achievements of the past year reflect a long-term vision to establish a resilient electronic payment infrastructure that supports the Kingdom’s digital economy. Key developments in 2024 included the implementation of central authentication for open banking via BENEFIT Pay”
Mr. AlJanahi concluded by thanking the Board for its strategic direction, the company’s staff for their continued dedication, and the Central Bank of Bahrain, member banks, and shareholders for their valuable partnership and confidence in the company’s long-term vision.