MAGRABi Retail Group acquires Kefan Optics, eyes potential IPO

Yasser Taher on acquiring Kefan Optics
0 seconds of 1 minute, 35 secondsVolume 90%
Press shift question mark to access a list of keyboard shortcuts
Next Up
Yasser Taher on potential IPO
01:48
00:00
01:35
01:35
 
Short Url
Updated 19 May 2025
Follow

MAGRABi Retail Group acquires Kefan Optics, eyes potential IPO

  • Kefan Optics provides MAGRABi a strategic entry point in Kuwait’s competitive optical retail sector
  • MAGRABi CEO Yasser Taher told Arab News the deal would elevate the company’s market share in Kuwait to an estimated 30%

RIYADH: Eyewear giant MAGRABi Retail Group has signed a deal to acquire Kuwait’s optical chain, Kefan Optics, as part of its strategy to expand its footprint in the Gulf market.

Known for its professional eye care services, technical expertise, and loyal customer base, Kefan Optics provides MAGRABi a strategic entry point in Kuwait’s competitive optical retail sector.

The acquisition is projected to increase MAGRABi’s top-line sales by 5 percent and boost its earnings before interest, taxes, depreciation, and amortization by more than 10 percent within the first year following integration.

In an exclusive interview with Arab News, MAGRABi CEO Yasser Taher said the deal would elevate the company’s market share in Kuwait from 5 percent to an estimated 30 percent, positioning the company as a market leader in the country’s optical retail sector.




MAGRABi is exploring the possibility of going public, though no formal steps have been taken yet. X/@MagrabiOpt

“Kefan is a highly trusted optician in Kuwait,” said Taher, adding: “They are highly recognized as a very professional optician, they provide high-quality technical service, and the brand is associated with professional optometry ... so they come across as a great fit in terms of clientele.”

Instead of phasing out the Kefan brand, MAGRABi plans to preserve its legacy while enhancing its operations. Planned changes include a refreshed logo, redesigned stores, and a revamped customer experience, all supported by advanced omnichannel capabilities tailored to younger demographics, particularly Gen Z.

Amin Magrabi, chair of MAGRABi Retail Group, called the deal a milestone in the company’s regional expansion. “This acquisition marks another defining moment in our transformation journey. We are proud to strengthen our presence in Kuwait and reinforce our leadership in a region poised for consolidation,” he said in a press statement.

“Our goal remains clear: to lead the evolution of eye care in the Middle East,” Magrabi added.

Kefan Optics Chairman Wael Al-Subaih noted the brand’s long-standing history and welcomed the transition.




Kefan Optics is known for its professional eye care services, technical expertise, and loyal customer base. Instagram/@_kefanoptics

“For 47 years, Kefan Optics — a proud, family-owned business — has been at the forefront of the optics and lenses industry in Kuwait, serving its valued clients through 37 branches across the country,” he said in a press statement. 

“Today marks a significant milestone as Kefan Optics continues its journey of excellence under the Magrabi Retail Group. We celebrate this new chapter with great optimism and extend our best wishes to all involved,” Al-Subaih added.

Deal timeline and financing

Although the acquisition agreement has been signed, the deal remains subject to regulatory approvals from Kuwait’s Competition Authority and Saudi Arabia’s General Authority for Competition. Taher anticipates a formal closing by late August or early September 2025.

“There are a lot of approvals that we should be able to get,” he said. “There are also other stakeholders, including shopping malls and so on. So it’s the usual closing process of any transaction. Yet, the deal is done, and we have already assigned a signed agreement that we are presenting accordingly to authority approvals.”

Regarding the financing structure, Taher said the company follows a hybrid model.

“We would usually try to fund 70 percent from banks and 30 percent from our own equity,” he added.




MAGRABi Retail Group was certified as a Best Place to Work in Saudi Arabia for 2024/2025. MAGRABi

IPO on the horizon

Looking ahead, MAGRABi is exploring the possibility of going public, though no formal steps have been taken yet.

“There is a strong intention to become a publicly listed company. No official approvals have been obtained from the board or the shareholders yet, we’re still working toward the plan and to be ready. The timelines are not in the immediate future,” Taher said.

Interestingly, as part of the Kefan Optics transaction, existing shareholders will have the opportunity to participate in MAGRABi’s future IPO, aligning both companies’ long-term interests.

M&A vs. organic growth

MAGRABi has been expanding through a combination of organic growth and strategic acquisitions, including its purchase of Rivoli Vision in 2024. Still, Taher emphasized that mergers and acquisitions only make sense when there are strong operational synergies.

“To have a successful M&A strategy, you must have very strong synergies to deploy; otherwise, you’re paying a very high premium for an acquisition, and you will not be able to improve results,” he said. “If that’s the case, then for sure, organic would be a better option, because M&A definitely comes at a premium.”

In Kefan Optics’ case, the synergies are clear. MAGRABi gains a well-established brand with loyal customers, while Kefan benefits from enhanced operational support.

“We chose that option because it makes financial sense for us, but strategically, we would like to be as well recognized as a local player in every market. So, if our brand is not necessarily highly recognized in this market. We would prefer to operate with a highly recognized and trusted brand in this market, which is the case in Kuwait,” Taher explained.

Sustained financial growth

Taher highlighted MAGRABi’s consistent financial performance, with the company targeting a 15-20 percent compound annual growth rate — and achieving it. In 2024, organic growth reached 14-15 percent compared to 2023.

When including the impact of the Rivoli Vision acquisition, net sales and EBITDA each rose by 43 percent year over year.

The company’s mainstream brand, Doctor M, also saw a 70 percent increase in sales, while online sales grew 25 percent during the same period.

“The big growth drivers remain our M&A,” Taher noted. “The introduction of Rivoli Vision as part of the MAGRABi Retail Group, also our mainstream banner, Doctor M, is a very big contributor. We’ve also been able to grow our online business by 25 percent year over year.”

Elevating the brand

MAGRABi intends to apply its retail expertise and backend capabilities — such as procurement, supply chain logistics, lens manufacturing, and retail analytics — to optimize Kefan Optics’ performance.

“We can definitely modernize the brand,” Taher explained. “Our intention is to keep the brand but evolve it into a premium and more appealing modern brand. We will refresh the brand, create a more appealing positioning, push the brand a bit more into the premium segment, and rebrand the logo and stores.”

He also pointed to the benefits of incorporating MAGRABi’s central glazing lab and digital retail tools to improve operational efficiency and enhance customer service.

Omnichannel strategy and future plans

As part of its growth strategy, MAGRABi aims to become a leading omnichannel retailer in the Middle East, investing in technology, customer experience, and product innovation.

“The objective is to really become one of the best omnichannel retailers in the Middle East, across all categories,” Taher said. “We’re investing a lot on tech and new customer experience, new services, and new product ranges. It’s a fully empowered proposition.”

The company is also actively pursuing further acquisitions across the region.

“M&A is a key pillar of our growth. We are active, and we have a pipeline that we’re working on, and we’re extremely excited about being able to deploy our capabilities across more and more banners, in different markets,” Taher confirmed.

With the Kefan Optics acquisition and IPO plans in motion, MAGRABi is positioning itself as the dominant force in the region’s optical retail sector.

Taher concluded: “It will be a very proud moment for us to take a brand that is highly trusted, like this in Kuwait, highly recognized in Kuwait, and evolve it to the next level and modernize it.”


Closing Bell: Saudi main index slips 1.15% to close at 10,591

Updated 37 min 59 sec ago
Follow

Closing Bell: Saudi main index slips 1.15% to close at 10,591

  • MSCI Tadawul Index decreased by 11.84 points to close at 1,366.6
  • Parallel market Nomu lost 254.4 points to end at 26,203.84 points

RIYADH: Saudi Arabia’s Tadawul All Share Index declined on Wednesday by 122.69 points, or 1.15 percent, to end at 10,591.13.

Total trading turnover of the benchmark index was SR6.22 billion ($1.66 billion), with 18 stocks advancing and 231 declining. 

The MSCI Tadawul Index also decreased by 11.84 points, or 0.86 percent, to close at 1,366.6

The Kingdom’s parallel market, Nomu, reported drops, losing 254.4 points, or 0.96 percent, to close at 26,203.84 points. This comes as 30 stocks advanced while as many as 55 retreated. 

Among the top gainers, BAAN Holding Group Co. rose 1.6 percent to SR36.85, while Advanced Petrochemical Co. added 1.26 percent to end at SR28.1. 

Dallah Healthcare Co. and Naseej International Trading Co. gained 1.05 percent and 0.94 percent, respectively, closing at SR115.4 and SR74.90.

Saudi Tadawul Group Holding Co. also rose 0.87 percent to close at SR162.

Among the worst performers, National Co. for Learning and Education led losses with a decline of 7.53 percent to close at SR140.

Saudi Marketing Co. followed, shedding 7.04 percent to settle at SR15.32, while Ataa Educational Co. fell 5.85 percent to SR61.20. 

Arabian Pipes Co. ended the session down 5.46 percent at SR5.54, and Saudi Reinsurance Co. edged 5.13 percent lower to SR42.55.

On the announcements front, Saudi National Bank announced its intention to fully redeem its SR4.2 billion Tier-1 capital sukuk at face value on June 30, marking the fifth anniversary of its issuance.

The sukuk, which was issued on June 30, 2020, with a total value of SR4.2 billion, will be redeemed at 100 percent of the issue price in accordance with its terms and conditions.

The bank confirmed that all necessary regulatory approvals for the redemption have already been obtained.

SNB closed Wednesday’s session 0.43 percent lower to reach SR34.35.

Saudi Arabia’s low-cost carrier flynas made its stock market debut, opening at SR77.50 and climbing to SR84.10 before retreating to a low of SR69.90. The stock closed at SR77.30, 3 percent below its IPO price of SR80.


Saudi Arabia ranks 17th globally in competitiveness index as it outshines economic heavyweights 

Updated 18 June 2025
Follow

Saudi Arabia ranks 17th globally in competitiveness index as it outshines economic heavyweights 

  • Listing driven by strong governance, infrastructure upgrades, diversification, and regulatory reforms
  • Kingdom placed behind China in 16th and ahead of Australia in 18th place

JEDDAH: Saudi Arabia has maintained its spot in the top 20 of the World Competitiveness Ranking, ahead of global heavyweights like the UK, Germany and France.

The Kingdom secured 17th position on the list, driven by strong governance, infrastructure upgrades, diversification, and regulatory reforms.

Issued by the International Institute for Management Development’s World Competitiveness Center, the ranking is widely recognized as a benchmark for evaluating how effectively countries utilize their resources to drive long-term economic growth. 

Saudi Arabia was placed just behind China in 16th and ahead of Australia in 18th place. 

Although this marks a slight drop from 16th in 2024, Saudi Arabia’s 2025 ranking represents a significant improvement from 32nd in 2023 and 24th in 2022, underscoring its rising economic stature.

Infrastructure continues to show marked improvement. Basic infrastructure ranks seventh globally with a score of 67.6, up two positions. File/SPA

As part of Vision 2030, Saudi Arabia launched the National Competitiveness Center in 2019, with the organization now working with 65 government bodies to drive reforms centered on productivity, sustainability, inclusiveness, and resilience.

According to the World Competitiveness Center, the Kingdom needs to “continue efforts to promote renewable energy and reduce carbon emissions” and “carry on enhancing overall competitiveness across multiple pillars.”

Improvement will also come if Saudi Arabia continues to “invest even more in human capital development across all economic sectors” and push ahead with “ongoing government endeavors to achieve the targets in the Saudi 2030 vision.”

The IMD report is one of the world’s most comprehensive competitiveness benchmarks, evaluating 69 countries across four pillars: economic performance, government efficiency, business efficiency, and infrastructure.

The ranking shows that GCC countries continue to demonstrate their growing economic strength and regional importance, with the UAE leading the group, securing fifth place globally, reflecting its diversified economy and strategic initiatives to attract investment.

Qatar follows in ninth place, supported by substantial infrastructure development and robust financial resources.

Bahrain was ranked 22, Oman came in at 28, and Kuwait was placed at 36, showing steady progress through structural reforms and sectoral investment despite ongoing challenges.

These rankings underscore the GCC’s ambition to strengthen global economic resilience and competitiveness.

Switzerland, Singapore, and Hong Kong lead the ranking, while Canada, Germany, and Luxembourg saw the most notable improvements among the top 20 economies.

Saudi focus

According to the IMD, Saudi Arabia has made progress in several key economic areas, although some aspects still require improvement.

On the economic performance indicator, the Kingdom ranks 17th globally with a score of 62.3. Its domestic economy scored 59.2, placing it 25th worldwide, an improvement of six positions from the previous year.

Saudi Arabia ranked 12th globally in business efficiency with a strong score of 81.4. Shutterstock

International trade advanced three places to 29th with a score of 56.0, while global investment climbed four spots to 16th with a score of 57.8, signaling increased investor confidence.

However, the employment sector declined slightly, dropping three positions to 29th with a score of 55.6. 

Inflationary pressures impacted the prices indicator, which fell eight places to 19th despite maintaining a relatively strong score of 60.7.

These mixed results reflect Saudi Arabia’s ongoing efforts to strike a balance between growth and economic stability amid global and domestic challenges.

Public finance indicators remain solid, with a score of 69.5, placing the Kingdom 13th globally, despite a modest three-position drop.

Tax policy holds steady at 67.6 points and 12th place, with a similar three-rank decline. The institutional framework experienced a more pronounced decline, dropping seven places to 27th with a score of 58.6, indicating potential areas for reform.

In contrast, business legislation improved, rising two places to 13th with a score of 67.6, indicating regulatory progress. The societal framework remains a key challenge, ranking 55th with a score of 44.2, representing a nine-position decline, which highlights the need for continued social and structural development to support economic goals.

Saudi Arabia ranked 12th globally in business efficiency with a strong score of 81.4. Productivity and efficiency showed further strength, scoring 66 and placing the Kingdom 15th, up six spots.

The labor market remains a key strength, ranking 9th despite a four-place drop, with a score of 64.2. The finance sector gained three ranks to 19th with 63.4 points, while management practices rose to 17th with a score of 64.

Attitudes and values remain a significant national asset, ranking third globally with a score of 81.6, reflecting a strong culture of resilience and ambition.

Infrastructure continues to show marked improvement. Basic infrastructure ranks seventh globally with a score of 67.6, up two positions. Technological infrastructure rose 10 places to 23rd with a score of 59.5, and scientific infrastructure improved nine spots to 29th with a score of 52.1.

Health and environment indicators gained slightly, moving up one place to 47th with a score of 47.5. Education declined marginally, down one position to 39th with a score of 55.4, signaling an area for continued focus.


Riyadh Air to launch new destination every 2 months as 787 deliveries near

Updated 18 June 2025
Follow

Riyadh Air to launch new destination every 2 months as 787 deliveries near

  • Carrier is awaiting delivery of its initial aircraft to commence services
  • Riyadh Air secured necessary landing slots for its first destinations

RIYADH: Saudi Arabia’s Riyadh Air is gearing up to introduce a new international destination every two months once it begins operations, as the carrier prepares to receive its first Boeing 787 aircraft. 

Riyadh Air, fully owned by the Public Investment Fund, is awaiting delivery of its initial aircraft to commence services, according to CEO Tony Douglas. 

Speaking to Bloomberg, he said the airline requires two jets to initiate a round-trip route to each new destination, adding that the Saudi carrier aims to connect to 100 cities by 2030 as part of its long-term growth strategy. 

This aligns with the Kingdom’s National Aviation Strategy, which targets doubling passenger capacity to 330 million annually from over 250 global destinations and increasing cargo handling to 4.5 million tonnes by 2030. 

The carrier currently has four Boeing 787 Dreamliners in different stages of assembly at Boeing’s facility in Charleston, South Carolina. Operations are expected to begin once the first two aircraft have been delivered. 

Riyadh Air had initially planned to launch services in early 2025, but delays in aircraft handovers from Boeing have pushed back the timeline. 

“The fact that these are in production probably brings my blood pressure down,” Douglas said. “I will actually not believe they have been delivered until the day after they have been delivered.” 

Douglas also said Riyadh Air has secured the necessary landing slots for its first destinations, though he did not disclose which cities. 

At the Paris Air Show this week, the airline announced an order for up to 50 Airbus A350 long-range jets, with deliveries expected to begin in 2030. 

Riyadh Air has also placed orders for 60 Airbus A321neo narrowbody aircraft and as many as 72 Boeing 787s, including options. 

Commenting on the Airbus order, Douglas said the decision was based on the aircraft’s capabilities and favorable commercial terms when compared with Boeing’s 777X model. “It was a very close call,” he said. 

The airline’s growth strategy reflects the Kingdom’s ambition to transform Riyadh into a global travel hub and position Saudi Arabia as a major player in international aviation. 

Riyadh Air aims to contribute to the broader Vision 2030 goals by enhancing connectivity and promoting tourism across the Kingdom. 


Saudi-based TIME Entertainment makes Nomu market debut

Updated 18 June 2025
Follow

Saudi-based TIME Entertainment makes Nomu market debut

  • Listing underscores company’s maturity and readiness for future expansion
  • TIME Entertainment specializes in producing large-scale live events across various sectors

RIYADH: TIME Entertainment Co., a Saudi-based full-service live events and experiences management company, has officially begun trading on the Nomu parallel market, marking a significant step in its growth trajectory.

Chairwoman Ameera Al-Taweel described the listing as a strategic milestone that underscores the company’s maturity and readiness for future expansion.

TIME’s listing comes as part of broader efforts by Saudi Arabia to expand investor participation in the Nomu market. In 2024 alone, Nomu has seen 28 IPOs and three direct listings, raising about SR1.1 billion ($293 million).

“We have built a Saudi business model within the live events sector that meets global standards. The events sector is vast and diverse. Our experience represents a successful model that has been built based on a global vision, capped with a Saudi identity, and is distinguished by specializing in producing and organizing major live events managed by a multi-skilled team of some of the best events professionals globally.” Al-Taweel said in a statement. 

Al-Taweel also highlighted the company’s role as a trusted partner to government, semi-government, and private sector clients. “We believe that we represent a national choice that executes major global events and constantly works,” she added.

CEO Obada Awad said the company is guided by a strategy rooted in sustainable growth and market responsiveness.

“We also place significant emphasis on sustainable operational improvement and diligent work to develop and launch premium and quality services that add real value to the market,” he said.

TIME Entertainment specializes in producing large-scale live events across sectors such as sports, entertainment, culture, tourism, and conferences. It offers end-to-end production and management services, in addition to creative and consultancy expertise.

The company is also focused on crafting distinctive narratives grounded in Saudi culture and heritage, with the aim of sharing them with global audiences. Its goal is to deliver innovative, artistically rich, and high-quality experiences.

Saudi Arabia’s entertainment sector is rapidly emerging as a key pillar of the Kingdom’s economic diversification agenda. As the country moves away from its traditional reliance on oil, strengthening the entertainment industry is seen as critical to driving growth across multiple sectors.

A recent report by consultancy AlixPartners found that 33 percent of Saudi consumers plan to increase spending on out-of-home entertainment — well above the global average of 19 percent — highlighting strong local demand.


Saudi Arabia, France discuss $2.6bn aviation sector investment potential amid flurry of deals

Updated 18 June 2025
Follow

Saudi Arabia, France discuss $2.6bn aviation sector investment potential amid flurry of deals

  • Deals covered strengthening ground support capabilities, localizing technology, and advancing workforce training
  • Saudi firm Cluster2 Airports signed MoU with Airbus to deploy advanced digital solutions

RIYADH: Investment opportunities worth more than SR10 billion ($2.6 billion) were set out at a high-level Saudi-French meeting amid a flurry of deals aimed at strengthening the aviation sector.

Airport infrastructure, air navigation, and advanced technologies were among the areas flagged up as available for investment during a roundtable held on the sidelines of the 55th Paris Air Show.

The agreements signed covered strengthening ground support capabilities, localizing technology, and advancing workforce training, and involved Saudi Ground Services Co., France’s Alvest Group, and Arabian Alvest Equipment Maintenance Co., the Saudi Press Agency reported. 

The deals come as Saudi Arabia and France deepen economic ties, with non-oil trade exceeding SR20 billion ($5.33 billion) in 2024. The relationship was reinforced during President Emmanuel Macron’s December visit, where both sides endorsed a strategic partnership roadmap and signed a memorandum of understanding to establish a Strategic Partnership Council. 

The roundtable was chaired by Abdulaziz bin Abdullah Al-Duailej, president of the General Authority of Civil Aviation, and brought together more than 65 Saudi and French public and private sector entities, including CEOs, aviation safety officials, and specialists across airports, services, and infrastructure. 

“The meeting highlighted the Kingdom’s Vision 2030 objectives to achieve economic diversification, and its keen interest in empowering the private sector and building global industrial partnerships,” the SPA report stated. 

It added: “The meeting also highlighted the National Aviation Strategy and its focus on developing the aviation industry, making it a top priority sector.” 

Saudi Ground Services Co.’s MoU with Alvest Group and Arabian Alvest Equipment Services Co. involves localizing smart, eco-friendly technologies for ground equipment, along with all related maintenance and technical support services. A separate MoU with the same partners was signed to offer training programs and an accredited diploma in technical services and ground equipment maintenance. 

The discussions also explored future challenges in global aviation, emphasizing the need for joint strategic efforts in innovation, sustainability, and infrastructure development. 

Also at the Paris Air Show, Saudi firm Cluster2 Airports signed an MoU with Airbus to deploy advanced digital solutions aimed at improving operational efficiency, security, and integration across all airports under its network.

The partnership includes the introduction of smart technologies such as Airbus’ Agnet Turnaround platform, an advanced system that enables real-time coordination of airport ground operations. 

The latest agreements support the National Aviation Strategy, under which the Kingdom aims to expand capacity to 330 million passengers and 4.5 million tonnes of cargo annually by 2030, connecting to over 250 global destinations.