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Gulf mall operators rein in expansion as retailers reel from COVID-19

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DUBAI (Reuters) – Mall operators in the Gulf region are delaying new mega-projects as the coronavirus pandemic and low oil prices upend a retail industry built around huge centres catering to tourists and wealthy locals.

Majid Al Futtaim (MAF), the Middle East’s biggest mall-operator, told Reuters it had delayed the launch of its fifth and largest centre in Oman, the 145,000 square-metre (1.5 million sq-ft) Mall of Oman, because retailers did not have the cash at hand to fit out stores.

In Dubai, Emaar Malls EMAA.DU halted construction on two projects, according to two sources familiar with the plans. They are a mall near the site of the Expo 2020 world fair, which has been delayed by a year to next October, and a 185,000 square-metre mall in the Dubai Hills residential area, the people said.

Emaar Malls, owner and operator of the world’s largest shopping centre, Dubai Mall, did not respond to a request for comment.

“In malls under construction, timelines are being revisited. This is a fluid situation,” MAF’s Chief Executive Alain Bejjani told Reuters. “We will see how it goes and adapt,” he added. “It will be the case for the coming 12 months.”

Luxury malls, featuring international brands and entertainments such as dancing fountains and indoor ski slopes, have been the cornerstone of the oil-producing region’s retail industry, especially during the blistering summer months.

A growing population and steady stream of tourists has seen more projects planned in recent years even as competition has intensified and footfall has levelled off.

Last year, Alpen Capital forecast the Gulf retail sector to grow from $253 billion in 2018 to $308 billion in 2023.

‘All in tough spot’

The pandemic has changed the game in a matter of months, though.

Brick-and-mortar retailers have been among the worst hit by coronavirus closures. At Dubai’s Mall of the Emirates last week, several shop fronts were boarded up and rental dispute notices hung in some shop windows, a visitor said.

EFG Hermes forecast a 20% drop in Dubai store-based sales in 2020 if foreign visitors were allowed entry in the third quarter, and a 40% drop if travel bans remain until year-end.

MAF, which operates 27 malls across the Middle East, said retailers in the Gulf region were not expecting a meaningful recovery for the sector in the next 18-24 months. Foot traffic at its malls in the United Arab Emirates in May was less than half of what it was a year ago, it added.

“They are all in a tough spot. They’re focusing on liquidity issues,” Bejjani said.

He said the impact was being felt, from retailers to companies in their supply chain. Some of the firms will “throw in the towel” this year, he added.

Kuwait’s Alshaya Group, the Gulf’s largest franchise operator with brands including Starbucks, Pottery Barn and The Cheesecake Factory, provided a grim outlook in April in an internal staff video seen by Reuters.

“Today, less than 5% of our stores are open … Our revenues have shrunk by 95%, whilst our cost base has stayed the same,” said acting Chief Executive John Hadden. “This is not sustainable for any business anywhere in the world.”

Alshaya declined to comment.

Race to go online

The slow move to online sales in the region has compounded retailers’ problems.

Though malls reopened last month in the region’s two largest markets, Saudi Arabia and the UAE, some customers still worry about COVID-19.

“I just looked at things from a distance and didn’t buy anything,” said Sahimaa in Riyadh. “I couldn’t get myself to touch anything.”

A senior executive at a large fashion conglomerate, who declined to be named, said 96% of sales last year in the Gulf came from malls, versus 4% from e-commerce.

“To get 80% from online, vs 20% brick and mortar – that’s not gonna happen in the next 20 years,” the executive said.

Online sales in Saudi Arabia accounted for about 0.8% of retail sales in 2018, and 1.5% in the UAE, according to a Boston Consulting Group report. By contrast, online grabbed more than 14% of retail sales in the United States in 2018, research firm Digital Commerce 360 found.

Many mall operators have offered a digital platform for shops to place products online to help cope with the pain.

MAF has placed some of the shops that sell household items on its Carrefour shopping marketplace, for example. Emaar Malls helped its tenants at Dubai malls place products on Namshi, an e-commerce website it owns, and Noon.com.

“People still stood on the fence, thinking e-commerce is in the future. Because of corona, they were forced to use the available technologies,” said Rabih Khoury, partner at Dubai-based venture capital firm Middle East Venture Partners.

“You have to have the digital part. If you don’t have it, it is as if you don’t have a key location at a mall.”

Reporting and photo: Reuters

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2 decades of culinary excellence: BBM’s founding legacy with Hotel Asia continues in 2025

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Hotel Asia Exhibition and International Culinary Challenge is referred to be the hospitality industry event in the Maldives. In this year’s Culinary Challenge (19 to 22 October 2025) comprising competitions over 20 categories, most will take place at the Faculty of Hospitality and Tourism Studies, Maldives National University, and some at the Synthetic Track, Hulhumalé.

A Founding Partnership that Endures

Since the very first edition in 2001, Bestbuy Maldives (BBM) has played a central role in shaping the International Culinary Challenge into the Maldives’ most prestigious culinary platform. The event has become a cornerstone for professional development, bringing together chefs from across the Maldives to compete, learn, and showcase their craft.

BBM and their associated Principals sponsor an overwhelming majority of categories. “From the beginning, our goal has been to create opportunities for Maldivian chefs to rise to global standards. This partnership has grown with the industry itself,” said A.V.S. Subrahmanyam, Chief Operating Officer of BBM.

Nurturing Local Talent

BBM’s contribution extends beyond sponsorship. The company has built a long-term system for recognizing and developing local culinary talent.

  • BBM Chairman’s Trophy for the Best Maldivian Competitor.
  • Most Promising Young Chef Award for emerging talent.
  • Global exposure programs for Maldivian chefs through sponsored participation in international events.
  • Pro-bono Masterclasses with world-renowned chefs to encourage learning and innovation.

Investing in the Future of Hospitality

Through initiatives such as Building Young Talent, BBM continues to mentor aspiring professionals and support the next generation of chefs. The company also promotes inclusivity by sponsoring opportunities for female and young chefs to gain international exposure.

BBM’s industry partnerships include its role as Title Sponsor of the Hotelier Maldives Awards, celebrating excellence across the Maldivian hospitality sector.

Proud Sponsors of Culinary Excellence

In 2025, BBM and its partner brands proudly sponsor 14 competition categories and 8 Main Awards, further strengthening their role in the development of culinary arts in the Maldives. Categories include Decorated Cake, Artistic Showpiece, Bread and Pastry Display, Three Desserts (Display), Desserts, Rice Dish, Asian Noodles, Team Challenge, Maldivian Dish, Creative Sandwich, Young Chef, Tea Challenge, tapas/finger food, and Iced Mocktail.

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Bestbuy Maldives, MNU forge partnership to advance hospitality education

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The Maldives National University – Faculty of Hospitality and Tourism Studies (MNU-FHTS) and Bestbuy Maldives (BBM) have officially signed a Memorandum of Understanding (MoU) to strengthen industry-academic collaboration and advance hospitality education in the Maldives.

The MoU was signed by Dr Aishath Shehenaz Adam, Vice Chancellor of MNU, and Ismail Hilmy, Chairman and Managing Director of BBM, during a ceremony attended by the university’s Chancellor Dr Mahmood Shaugee, senior management, and representatives from both organisations.

This partnership marks a significant milestone in developing a state-of-the-art Food and Beverage Practical Demonstration Kitchen at MNU-FHTS. BBM will support the upgrading of the existing Garde Manger kitchen and classrooms, contributing financially and materially to create a modern, industry-standard learning environment for future hospitality professionals.

Beyond infrastructure, the collaboration will extend to academic and training support, research and innovation in culinary arts, community engagement, and professional networking opportunities, ensuring that students gain practical, real-world experience aligned with industry expectations.

Highlighting the broader purpose of this partnership, BBM stated that, “This is a significant step in the direction of BBM’s vision involving hospitality industry outreach in the Maldives — because tomorrows start today. Initially, we will set up a world-class model kitchen that will be suitable for masterclasses and hands-on training for students; and also for product demonstrations, masterclasses, and interaction with groups of customers.”

Speaking at the ceremony, representatives from both institutions emphasised their shared vision to promote excellence in education, innovation, and human capital development in the Maldivian hospitality sector. This partnership underscores BBM’s continued commitment to supporting education and industry growth, and MNU-FHTS’s mission to bridge the gap between academia and industry — nurturing the next generation of hospitality leaders in the Maldives.

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SATA 2025 announces partnerships; confirms Hotelier Maldives, Maldives Insider as Media Partners

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Hotelier Maldives and Maldives Insider have been confirmed as official Media Partners of the South Asian Travel Awards (SATA) 2025. The announcement was made during a signing ceremony held at Hulhulé Island Hotel, Maldives, where SATA unveiled its distinguished partners for the 9th edition of the annual awards.

Now in its ninth year, SATA has become a key platform for recognising excellence in South Asia’s tourism and hospitality sector. The partnership with Hotelier Maldives and Maldives Insider will strengthen the awards’ regional visibility and ensure extensive coverage of the event across Maldives and beyond.

This year’s awards ceremony will take place from 19th to 20th September 2025 at Cinnamon Grand Colombo, Sri Lanka, bringing together industry leaders, stakeholders, and innovators from across South Asia.

In addition to the media partnership, SATA 2025 also announced its corporate partners. Honda Marine has been named the Platinum Partner, while The Hawks, Velana International Airport, and Allied Insurance Company of the Maldives join as Gold Partners. Renaatus Realty has been confirmed as the Silver Partner, and Hulhulé Island Hotel continues as the official Hospitality Partner in the Maldives.

Speaking at the ceremony, SATA organisers noted that the strong lineup of partners reflects the growing importance of collaboration within the tourism and hospitality industry. With the support of its partners, SATA 2025 aims not only to celebrate outstanding achievements but also to foster long-term cooperation and sustainable growth in the region’s tourism sector.

The awards are endorsed by leading national tourism bodies and associations across South Asia, including the Sri Lanka Tourism Development Authority, Nepal Tourism Board, Visit Maldives Corporation Limited, and several travel and hotel associations across the region.

This year’s evaluation process was conducted by a panel of nine jury members representing different countries, including tourism leaders from India, Sri Lanka, Bangladesh, Nepal, Bhutan, Spain, and the Maldives.

Through partnerships with media outlets such as Hotelier Maldives and Maldives Insider, SATA 2025 will ensure broad engagement across key markets, strengthening its position as one of South Asia’s most prestigious hospitality and travel award platforms.

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