MALL TOGETHER NOW
Mabanee aims to build world-class malls, hotels and lifestyle destinations across the Gulf, using the latest in climate control technology.
BIOGRAPHY
Waleed Alsharian holds a bachelor’s degree in industrial engineering from North Carolina Agriculture & Technical State University. Alsharian was appointed CEO of Mabanee Company in 2006. He has over 31 years of real estate development, operation, manufacturing, project planning, property management, investment, maintenance, sales, and marketing. He is a board member of the Kuwait Metro Rapid Transport Company and a member of the Kuwait Society of Engineers.What business strategies is Mabanee relying on to maintain its position in the market while increasing its market share?
At present, we are focusing on shopping malls and maintaining diversity by trying to improve our position in the hospitality sector that is linked with the mall business. We are trying to integrate hotels with every mall we build. In fact, according to our research, hotels linked to malls have approximately 25% higher occupancy rates. We are also working to introduce office buildings and residential developments into these projects; the idea is to create a community. Even though we have not operated any hotels yet, we are currently building two hotels in Kuwait City, one in Bahrain, four in Riyadh, and three in Khobar as well as planning to build one in Sharjah. All of them will range from three-star hotels to luxury five-star accommodations.
In what ways is The Avenues differentiating itself from other comparable shopping malls in the region?
The Avenues Kuwait is often compared to the big shopping malls in Dubai or The Avenues in other Gulf countries. In the Avenues, we annually count more than 40 million visitors that come to visit our 1,100 stores. Hence, we are one of the largest malls in terms of visitor and store numbers. In addition, since we opened Phase IV, we have experienced around 20-25% growth in the number of visitors, many of them coming from the GCC region. In addition, in order to differentiate ourselves from the competition, we are creating entertainment and lifestyle projects, not just shopping malls. We want people to go and have coffee, meet up with friends, stay in the hotel, and engage in a certain lifestyle, not just go shopping.
In light of Mabanee's projects in Riyadh and Khobar as well as its introduction to the Kuwait Stock Exchange, to what extent can the company expect increasing levels of investment?
Our project in Riyadh contains one of the largest malls and built up areas in the world at 1.7 million sqm. It will contain five towers of around 36 floors each and a shopping mall of approximately 400,000 sqm of leaseable area. There will be 1,350 stores and a car park with 18,000 spots. Moreover, there will be one office building and four hotels, part of which will be residential. The construction cost for the total project will be USD3.2 billion, excluding the fit out. Our Khobar project is also huge, at around 60% of the size and the cost of the Riyadh project. We would like to introduce a mixed-use project, including an office building, three hotels, residential units, and a shopping mall with approximately 180,000sqm of leaseable area. With both projects, we intend to double our net profit after four to six years, which is something our investors look forward to. In fact, we have a conference with our investors from all over the world after each quarterly financial result. In the Kuwait stock market, investors sometimes only take notice of the cash dividends on their stocks and because we have had projects under construction, our dividends were considered low. This is why our stock has not picked up; however, this is not something to be concerned about because the high amount of capital is tied up in the construction process, limiting the number of dividends ratio. The population around Riyadh will rise to 10 million within the next five years and while there are a few malls, they are not like the project we are going to build.
MALL TOGETHER NOW
TABLE OF CONTENTS
Interview
Adel Abdul Wahab Al-Majed , Chairman, Kuwait Banking Association (KBA)
Through a broad array of information, specialized committees, staff expertise, and other resources, KBA supports Kuwait's banks as they perform their critical role in energizing the economy and helping communities thrive.
read articleInterview
Sheikh Dr. Meshaal Jaber Al-Ahmed Al-Sabah, Director General, Kuwait Direct Investment Promotion Authority (KDIPA)
KDIPA adopts a proactive approach to attract value-added direct investments supported by an integrated promotional strategy serving Kuwait's developmental goals in line with its National Vision 2035.
read articleCommuniqué
Legal Reform and Infrastructure Projects Spell Opportunity for Foreign Investors
Along with the introduction and modernization of new laws and regulations, the vision of His Highness Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah to transform Kuwait into an international center for commerce and industry by 2035 is already being implemented through Kuwait's National Development Plan. Coupled with the promulgation of progressive FDI regulations, these new opportunities spell positive news for foreign companies looking to conduct business in Kuwait.
read articleFocus: Developing connectivity
Connecting the Dots
Today, connectivity is hardly indispensible for individuals and the companies where they work. Kuwait's smart cities, considered elsewhere in the book, will thrive on it, and meanwhile the nation continues to register notable business deals from the informatics sector.
read articleInterview
Khalid Abbas , Country Manager-Kuwait, Unilever
Contributing to the improved health and wellbeing of communities and reducing environmental footprint are key priorities for Unilever, which is committed to improving the health and wellbeing of up to 1 billion people globally by 2020.
read articleInterview
Mohammed Yousif Soud Al-Sabah , Board Chairman & Director, Public Authority of Agriculture Affairs and Fish Resources (PAAAFR)
PAAAFR has adapted a package of policies to face challenges inherent to deserts, hot climate, and water scarcity, bringing Kuwait closer to achieving national food security, one step at a time.
read articleInterview
Yang Chunsen, Vice President/ Chief Representative, China State Construction Engineering Corporation Middle East (CSCME) Kuwait
CSCME is a technology-driven company that leverages its R&D and long-standing partnership with the government to increase its participation in the future development of Kuwait.
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