Dubai-based Alabbar Enterprises will acquire a 4% stake in Italian retail company Yoox Net-A-Porter (YNAP).
The investment will bring a €100m capital increase in YNAP, which will be paid for entirely by Dubai entrepreneur Mohamed Alabbar, reported Footwearnews.com.
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This will help the Italian firm to expand its growth in the Middle Eastern market.
YNAP chief executive Federico Marchetti was quoted by Arab News as saying: "Mr Alabbar’s track record in delivering exclusive luxury and retail experiences across the Middle East will provide us with invaluable insights in the fast-growing regional luxury fashion market."
Alabbar Enterprises manages several franchise operations in the Middle East and Asia.
It also runs operations for the chocolate manufacturer Hershey’s and fashion house Oscar de la Renta.
Mohammed Alabbar is also chairman of Emaar Properties, a Dubai government-linked builder.
A subsidiary of Emaar Properties, Emaar Malls both owns and operates Dubai Mall that accounts for 50% of the luxury goods spending in UAE.
According to YNAP, this was because of the fact that the company’s financial needs were less than initially estimated.
Alabbar was quoted by Arab News as saying: "We are building a relationship with this company, its shareholders and management, and I wouldn’t mind getting involved."
