MAJID AL FUTTAIM FASHION ANNOUNCES FRANCHISE AGREEMENT WITH ABERCROMBIE & FITCH CO.

Majid Al Futtaim, the leading shopping mall, retail and leisure pioneer across the Middle East and North Africa, announced today that it has entered into a franchise agreement with Abercrombie & Fitch Co. to establish a retail store presence in the Kingdom of Saudi Arabia, Qatar, Bahrain and Oman. This expands upon Majid Al Futtaim’s existing relationship with Abercrombie & Fitch Co. Beginning in 2013, the two parties entered into a Joint Venture Agreement in the UAE and a Joint Operating Agreement in Kuwait for all the company’s brands, including Abercrombie & Fitch and Hollister.

With Majid Al Futtaim’s support, the American retailer that focuses on upscale casual wear for young consumers has opened eight locations to date in the Middle East, including the first ever Abercrombie & Fitch Fragrance Room and one of its most successful opening day sales for Hollister when it launched at Mall of the Emirates. The expansion agreement throughout the rest of the Gulf serves as a testament to both the successful track record and strong demand for the brands in the region.

Forming franchise partnerships underlines Majid Al Futtaim Fashion’s commitment to seeking out new opportunities, and proves their dedication to the long-term success of brands, and demonstrates their commitment to the international growth of brands.

This franchise agreement encompasses the Abercrombie & Fitch, abercrombie and Hollister brands. The first stores in the new territories will be in Qatar during the first quarter of 2017 and in the Kingdom of Saudi Arabia in the second half of 2017, with Bahrain and Oman to be opened at later dates.

“We are excited to continue extending the company’s presence in the Middle East. We have seen significant demand within the last few years in the UAE and Kuwait and we look forward to helping Abercrombie & Fitch Co. grow in this market,” said Rajiv Suri, Chief Executive Officer at Majid Al Futtaim Fashion.

“We expect there to be strong demand for our brands in these new markets, and we are thrilled to partner with Majid Al Futtaim Fashion to expand our presence in the Middle East, “said Arthur Martinez, Executive Chairman of Abercrombie & Fitch Co. “This arrangement represents our second major franchise partnership, as we continue to expand our brand reach.”