RIYADH: Chalhoub Group is strengthening its presence in Saudi Arabia by launching a regional fulfillment hub in Riyadh and inaugurating a new luxury store in Solitaire Mall. 

The company’s latest investments underscore its commitment to the Kingdom’s evolving retail landscape, in line with its long-term expansion strategy. 

The new fulfillment center, located in the Riyadh free zone near King Khalid International Airport, is designed to boost the company’s e-commerce and distribution operations, serving Saudi Arabia and the broader region.

In an interview with Arab News during the Retail Leaders Circle Global Forum 2025 in Riyadh, Patrick Chalhoub, executive chairman at Chalhoub Group, highlighted the facility’s strategic role. 

“It’s a fulfillment center, which is aiming to really service both our digital and e-commerce drive, our distribution in Saudi Arabia but also beyond Saudi Arabia from Riyadh, gradually, to be really a hub of distribution,” he said.

The hub is expected to process up to 100 million luxury products at full capacity, leveraging advanced technology to optimize logistics and improve delivery speed. 

“The aim, like in e-commerce, is to be able to fulfill in Riyadh within two hours, in Saudi Arabia within 24 hours, outside Saudi Arabia in less than three days,” Chalhoub stated. 

“This will be and is the heart of the market, so it’s better to be based in the heart of the market and not be based outside and servicing the market,” he remarked, referring to the Kingdom as the center of luxury retail. 

Chalhoub Group has been present in the Saudi market since 1959 and has witnessed significant policy and economic shifts over the decades, the executive chairman highlighted.

The company now employs approximately 5,000 people in the Kingdom, with 78 percent of its workforce being Saudi nationals and 74 percent women. 

As part of its retail expansion, Chalhoub Group is also set to open a new store in Solitaire Mall in Riyadh on Feb. 12. 

The store is designed to deliver an enhanced shopping experience, reflecting the company’s focus on innovation in retail. 

Chalhoub highlighted that consumer behavior in the Middle East differs significantly from other regions, driven by cultural and social dynamics. 

Unlike Western markets, where individual preferences often dictate shopping trends, the Middle East places a strong emphasis on family-oriented experiences. 

Human connection is central in shaping commerce, with relationships and social interactions deeply influencing purchasing decisions. 

He underlined that while some of these characteristics can also be found in regions like Latin America and parts of Asia, they are far less prevalent in Western markets. 

Additionally, the retail landscape within Saudi Arabia itself is highly diverse, varying by region. Consumer preferences in the western, central, and eastern parts of the Kingdom are distinct, reflecting localized tastes and traditions. 

Chalhoub pointed out that Saudi Arabia’s rapidly growing young population is another key driver of change. 

With high birth rates and large families, the country’s demographics present significant opportunities for brands. Increasing education levels and digital connectivity are also shaping a new generation of more knowledgeable, globally aware, and tech-savvy consumers. 

He emphasized that this evolving demographic is one of the most valuable assets for the Kingdom and the broader Gulf region. 

Chalhoub provided insights into the global luxury market, emphasizing the Middle East’s growing but relatively small share. 

The worldwide luxury market — including beauty, fashion, jewelry, watches, and gift items — is valued at approximately $380 billion, with the Middle East accounting for $12.5 billion, or around 3 percent to 4 percent of the total. 

However, for successful brands, the region can represent between 5 percent and 7 percent of their global sales, highlighting its potential for further growth. 

Saudi Arabia’s luxury market is currently valued at nearly $3.5 billion, making up less than 1 percent of the global luxury sector. 

In comparison, the UAE, driven by tourism and local demand, boasts a luxury market exceeding $7 billion to $8 billion. 

Chalhoub also noted that despite their smaller populations, countries like Qatar and Kuwait have well-established luxury fashion markets, in some cases surpassing the Kingdom’s in terms of spending per capita. 

Given Saudi Arabia’s population of over 33 million, compared to Qatar’s 2 million and Kuwait’s 5 million, he suggested there is room for significant market expansion in the Kingdom. 

RIYADH: Bangladesh Ambassador M. Delwar Hossain says that his country is looking forward to working with the Saudi Arabian Cricket Federation and extending all cooperation as the sport’s popularity in the Kingdom grows.

The ambassador told Arab News: “Cricket is an important area developing in Saudi Arabia. The Saudi cricket team is doing well at the Asian Cricket Council events. We are following up the developments, and are in touch with the Saudi Arabian Cricket Federation.”

The Saudi cricket team won the ACC Men’s Challenger Cup, both the first and the second competition, played in Bangkok, Thailand, in 2023 and 2024. The tournament is a part of the qualification pathway for the Asia Cup. The finalists qualify for the Premier Cup, whose winner goes on to the Asia Cup.

Hossain said that his predecessor, ambassador Mohammad Javed Patwary, met SACF Chairman Prince Saud bin Mishal Al-Saud last year, and they had signed an agreement between the Bangladesh and Saudi cricket boards.

The SACF chief was also invited to visit Bangladesh to see cricket developments there and decide what kind of cooperation could be extended from the Bangladeshi side. He was a keen supporter, according to the embassy officials who accompanied the previous ambassador during the meeting.

“I am new here, and look forward to meeting the SACF chairman and discussing how we can work together for better cooperation,” Hossain told Arab News.

Bangladesh is a good cricket side, currently ranked in the top ten across all formats: Test, ODI and T20 internationals.  

Many Bangladeshi expatriates play cricket at different clubs in Saudi Arabia. Bangladeshi expatriates have been invited to join matches organized by the SACF with employees of various companies as part of corporate cricket.

Recently Bangladeshi international schools have also been engaged in the game — both male and female students — for separate matches organized by the SACF.

With the game growing by leaps and bounds in the Kingdom, many developments are taking place. The Red Sea city of Jeddah hosted the TATA IPL mega auction at the Abadi Al-Johar Arena in November 2024, which attracted international cricket stars and the celebrity owners of the IPL franchises.

The SACF described the TATA IPL mega auction as “a historic sporting achievement in Jeddah.”

Former Pakistan captain, and one of the great allrounders, Shahid Afridi, was recently in the Kingdom, and met SACF CEO Tariq Ziad Sagga, describing it as an inspiring experience, at King Abdullah University Of Science And Technology (KAUST) Winter Enrichment Program 2025.

“Honored to be invited to the @kaust_news Winter Enrichment Program 2025! Thrilled to champion cricket and sports empowerment alongside our star Olympian @ArshadOlympian1, CEO @Cricketsaudi @tzsagga and GM Iqbal Sikandar. A pleasure engaging with the brilliant faculty, students and community here, alongside @ZafarxMalik, CEO of @SAFoundationN. Together, we continue to drive the spirit of sports forward!,” Afridi posted on X.

Pakistani cricketing legends, including Wasim Akram and Shoaib Akhtar, have also been visiting the Kingdom and held meetings with the SACF chairman to discuss the development of cricket and ways to cooperate.

Indian cricket legend and former captain Rahul Dravid, head coach of the Indian Premier League team Rajasthan Royals, also attended the NEOM cricket program recently.