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GMG Announces 2024 Achievements and Sustainability Milestones

by rachel 6 months ago

written by rachel

In a bid to promote corporate sustainable practices, GMG, a global wellbeing and retail conglomerate, announced its key business achievements for 2024, highlighted by the expansion of its 12-year partnership with VF Corporation (NYSE: VFC), a global leader in branded lifestyle apparel, footwear, and accessories.

Building on GMG’s current operations of 90 VF mono-brand stores in MENA and Southeast Asia, the enhanced partnership will add more than 300 new stores across these regions over the next five years, alongside developing E-commerce operations for selected VF brands.

This strategic expansion aligns with significant market opportunities, as the global retail sector is projected to grow from $28.3 billion in 2023 to $37.7 billion by 2027. The MENA region continues to attract retail investment due to its growing population, robust spending power, and affinity for international brands, while Southeast Asia’s retail industry enters a new growth phase driven by rising disposable incomes, developing infrastructure, favourable business conditions, and increasing tourism.

“In 2024, we focused on strategic expansion and sustainable operations”, said Mohammad A. Baker, Deputy Chairman and CEO of GMG. “Our new partnerships and product launches have strengthened our market position, while our sustainability initiatives demonstrate our commitment to responsible business practices.”

GMG and Nike, partners since 1982, continue to evolve their collaboration to meet the demands of today’s digital shoppers. Responding to the surge in online shopping, GMG launched Nike.ae and Nike.sa, alongside the brand’s first mobile app in the region, prioritising customer convenience. Earlier this year, GMG further expanded Nike’s online presence by launching e-commerce platforms in Kuwait and Qatar, bringing the brand’s premium experience to even more customers in the region.

Across the Middle East and Africa region, GMG continued to strengthen its presence in Saudi Arabia through its partnership with JD Sports, marking its first store opening at Riyadh Park Mall. Meanwhile, the company’s Egyptian operations continue to flourish, with 26 stores across its retail portfolio and plans to reach 100 stores by 2026, supported by strategic partnerships with key local players.

GMG’s Everyday Goods division achieved significant milestones in 2024, launching innovative products at both GULFOOD and SIAL Paris, where it made its European debut. The company introduced Shnax, a healthy snacking alternative made from 100 per cent chicken, which earned an “Innovative Product” award nomination at SIAL. Additionally, GMG demonstrated its product innovation at these global events with an expanded portfolio of new brands, La Invitada and AL SERR, while showcasing established brands Farm Fresh, Sapora, RUH, and Klassic to international markets.

GMG capped a highly growth-focused year with the launch of GMG Home, adding a new dimension to the company’s retail portfolio. This division unifies Suncoast’s premium outdoor furniture with Monoprix Maison’s curated indoor collections, offering practical luxury for both outdoor and indoor living spaces.

GMG’s Health and Beauty division underwent a significant transformation this year with the rebranding of its Supercare pharmacy. Moving beyond the traditional pharmacy model, Supercare was repositioned as an “Ultimate Wellness Destination,” offering an expanded range of products and services focused on holistic well-being.

Advancing Sustainability and Community Impact

GMG launched its comprehensive CSR platform ‘GMG Cares‘ in 2024, built around three key pillars: Planet, Community, and People. The platform’s immediate impact was demonstrated through community initiatives providing over AED 70,000 worth of food staples to families in need and distributing 2,320 meals during Ramadan across the UAE, KSA, and Malaysia.

Additionally, this year, GMG reached a significant sustainability milestone with the publication of its inaugural Sustainability Report. The report highlights impressive progress, including a transition to 89 per cent green energy usage in its logistics operations between 2022 and 2023. This shift resulted in a substantial reduction of the company’s carbon footprint, avoiding over 2,000 tons of CO2 emissions.

Other ongoing environmental initiatives yielded significant results, including eliminating nearly 295,000 plastic bottles through a water station at Al Qudra cycle track as part of Dubai Can. Company-wide sustainability measures included replacing 35,000 square meters of plastic tape with paper alternatives and saving over 415,000 plastic bottles through water filter installations in the office.

In workplace empowerment, GMG introduced its Diversity, Equity & Inclusion (DE&I) committee, and launched the “EmpowHer” programme to advance women’s career opportunities. The company also established the GMG Sports Club and partnered with Al Noor Special Needs Centre to support employment opportunities for people of determination.

Advancing Digital Innovation and Customer Experience

Some of 2024’s impressive results include the Nike membership program, which generated 75 per cent of revenue through member sales in its first month. The company’s logistics infrastructure saw significant optimisation through AI implementation at its 23,070-square-meter mega-warehouse in Riyadh, enabling delivery times of 12-24 hours to major cities while reducing fleet size by 7 per cent.

“As we close 2024, our achievements across expansion, sustainability, and digital advancements demonstrate GMG’s evolution as a global retail leader”, said Mohammad A. Baker. “By combining strategic market growth with technological advancement and sustainable practices, we’ve created a foundation that positions us strongly for our next phase of growth. Our focus remains on delivering exceptional experiences to our customers while contributing positively to our communities and the planet.”

6 months ago 0 comments

UAE Set to Introduce New Tax on 1st January 2025

by rachel 7 months ago

written by rachel

The United Arab Emirates (UAE) is set to introduce a new tax at the start of 2025, and is considering options for incentives to support innovative businesses advancing the economy.

The UAE Ministry of Finance has announced updates in relation to specific provisions of Federal Decree Law No. 47 of 2022 on the Taxation of Corporations and Businesses.

A Domestic Minimum To-Up Tax (DMTT) will be effective in the UAE for financial years starting on or after the 1st January 2025 – this follows the issuance of Federal Decree Law No. 60 of 2023.

This step highlights the UAE’s commitment to implementing the Organisation for Economic Co-operation and Development’s (OECD) Two-Pillar Solution, targeted at establishing a fair and transparent tax system aligned with global standards.

The Pillar Two rules will require large multinational enterprises (MNEs) to pay a minimum effective tax rate of 15 per cent on profits in each country where they operate.

The DMTT will apply to multinational enterprises operating in the UAE with global revenues of $794 million or more in at least two out of the four financial years immediately preceding the financial year in which the DMTT applies.

In a bid to promote sustainable development, innovation and investment, the Ministry of Finance is considering the introduction of Corporate Tax Incentives under Federal Decree Law No. 47 of 2022.

In order to promote and encourage research and development activities, and foster innovation and economic growth in the UAE, a Research and Development Tax is being considered.

Following feedback received during public consultations conducted in April 2024, the proposed incentive is expected to take effect for tax periods starting on or after the 1st January 2026.

The research and development tax incentive will be based on expenditure, potentially offering 30-50 per cent tax credit and that will be refundable depending on the revenue and number of employees in the business in the UAE.

Refundable tax credit for high-value employment activities is being considered. This aims to encourage businesses to engage in practices that deliver significant economic benefits, inspire innovation, and enhance the UAE’s global competitiveness. This incentive is proposed to take effect on the 1st January 2025.

The final form and implementation of the aforementioned proposed incentives are subject to legislative approval. The Ministry of Finance will provide further details and guidance for taxpayers regarding these incentives in due course.

7 months ago 0 comments

Intelligence Latest News

Middle East Companies Urged to Ensure Compliance with New Data Protection and Privacy Laws

by rachel 7 months ago

written by rachel

A guide published by Marsh, a business of Marsh McLennan (NYSE: MMC) and the world’s leading broker and advisor, with global law firm Clyde & Co, urges organisations in the Middle East to make meaningful change to protect their businesses from long-term consequences amid the ride in data breaches and cyberattacks.

With an increased push across the region to strengthen cyber protection and to align with international best practices, some regional jurisdictions are issuing new, standalone data protection laws for the first time, while others are updating existing laws to align with international standards.

Some recent regional developments include that the UAE, KSA, Oman, Jordan and Egypt have issued standalone personal data protection laws, which are at varying stages of implementation and practical application. Similarly, Qatar and Bahrain have updated their already existing laws to align with international best practice. Kuwait has also issued a new data protection.

“It is imperative that organisations keep abreast of rapidly evolving legislation that impacts how they collect, process, transfer, store, and use data,” says Simon Bell, Managing Director, Cyber Practice Leader, IMEA, Marsh.

“With the increasing globalisation of many organisations and the fact the impact of cyber incidents can often span several jurisdictions, notification obligations may be triggered in several countries at the same time. Our new guide provides a comprehensive overview of recent developments in the Middle East and the main incident-related notification obligations for data controllers and processors.”

Bell highlights that the ‘Middle East Data Protection Guide’ includes a three-step action plan for companies getting to grips with the new legislation. In terms of the plan, companies need to establish a data protection framework, implement relevant controls, and educate their teams on a regular basis.

“We are at a real turning point for data protection legislation in the region”, said Olivia Darlington, Partner & Middle East Cyber Insurance Lead, Clyde & Co. “Historically, the data protection laws across the GCC countries and the wider Middle East have been spread across a patchwork of legislation and there has been limited enforcement of those laws”.

“The new and revised standalone data protection laws across the region provide prescriptive requirements for compliance and a clear framework for enforcement, which means that local organisations will have to move data protection compliance to the top of their list of priorities. Likewise, due to the extra-territorial effect of the laws, international businesses which operate in the region, will need to be on top of the changes to avoid being penalised by the local regulators.”

7 months ago 0 comments

Developing Energy

Ulla Hueppe Elaborates on Henkel Adhesive Technologies’ Efforts for Global Sustainability

by rachel 7 months ago

written by rachel

In a recent interview at Henkel’s office in Dubai, ESG MENA engaged in a thoughtful conversation with Ulla Hueppe, Head of Sustainability at Henkel Adhesive Technologies. They discussed how Henkel, as a family business, has been promoting sustainability for decades and explained their commitment to achieving 0% emissions by 2045.

7 months ago 0 comments

Environment Latest News Living

Green Bags Saudi Opens New Office in Riyadh

by rachel 7 months ago

written by rachel

In an effort to expand its sustainable product outreach, Green Bags Saudi has opened a new office in Riyadh. This expansion is a part of Green Bags Saudi’s commitment to offering environmentally conscious products across the region, aligning with the goals of the Saudi Green Initiative to promote sustainability and reduce environmental impact in the Kingdom.

The Riyadh office will be a central hub for the company’s operations, allowing for better facilities to meet the growing demand for eco-friendly products and cater to clients across Saudi Arabia. The office is located in the heart of Riyadh, which allows the company to work closely with businesses, organisations, and individuals, providing easy access to a range of sustainable products that support the shift away from single-use plastics.

Green Bags Saudi has also launched a state-of-the-art production facility that manufactures not only eco-friendly bags, but also a wide selection of sustainable gift items. The facility, which produces bags such as jute bags, cotton bags, juco bags, and canvas bags, also produces drinkware, gift-sets, stationery and apparel. The expansion of products reinforces Green Bags Saudi’s broad range of environmentally sustainable alternatives for companies looking to reduce their carbon footprint.

“Our Riyadh office and production facility are significant milestones in Green Bags Saudi’s journey”, said Shakkir Hussain, CEO of Green Bags Saudi. “We’re excited to provide an expanded product range that includes not just eco-friendly bags, but also sustainable promotional gifts that meet the needs of modern businesses aiming to support the environment.”

“Every product we offer brings us closer to a sustainable future, allowing companies to showcase their commitment to the planet while meeting their promotional needs.”

7 months ago 0 comments

Innovation & Education Opinion

The Most Important ESG Questions – What Agencies and Firms Need to Agree

by rachel 7 months ago

written by rachel

ESG (environment, social, governance) has to be considered when looking at almost every PR brief. For many companies it will be central for all proposals, or at least they may want it to be part of their plans.

For any agency looking to take on an ESG brief this is the first question we need to answer – is ESG the right approach for the company? This may seem very obvious but is often the point which is overlooked. The client has asked for ESG communications and we just follow their request and find a way to deliver on the brief.

In my experience this is where things can go wrong.

If we look at the origins of ESG we have to go back to 2004 and the publication of the United Nations report ‘Who Cares Wins’, (Global Compact Initiative – Who Cares Wins. Connecting Financial Markets to a Changing World) which is generally seen as the first high level endorsement of the ESG concept.

This is very important as ESG was very clearly linked to financial markets, and by implication firms working in or related to those markets, with the emphasis being on the ‘G’ governance element.

We often get firms who are not public, or involved in financial work, asking for us to look at or write their ESG strategy. This is all well and good, but is this the right approach for them, or would their actions in this area be better positioned as CSR (Corporate Social Responsibility) or as environmental initiatives.

I read a comment from another communications firm which said that more and more companies are ‘adopting ESG as a framework for explaining their corporate responsibility goals and progress’. Our advice is that unless your business is already structured to meet ESG reporting, it takes a lot of resource and work to make this happen.

ESG requires data on environmental factors to show the impact on the planet which includes carbon emissions, waste management, and resource usage. You also have to report on the company’s relationship with its employees, customers, and community to show how you are addressing social factors and finally, governance looks at the internal structures that guide company decision-making, and the transparency of the reporting of these decisions.

If as a firm these elements are not baked into the way you operate then there will be a problem in how you report against them.

ESG has to be embedded into the culture of a company, and this does not happen overnight. There needs to be a methodology for recording and reporting your ESG impact. This should include, at the lowest level, aligning with a recognised sustainability impact reporting standard. And, this should have data going back over a significant period of time.

If the firm has ESG embedded and they have a story to tell we look at communications, which are:

Data led – using the information that the reporting standards provide. In a sector which can be seen as aspirational rather than actual, the more hard data that can be used the stronger the positioning which can be delivered.

Narrative based – all elements of ESG, even Governance, are best positioned through telling the stories of the people involved, the benefits delivered, and the actions taken. ESG needs faces that make the results real.

Talking change – there needs to be the ability to benchmark the data against what has happened before and future delivery. This means that there is nowhere to hide! As soon as firms start ESG reporting they have to maintain the process.

Honest – ESG is not the place for vague statements and inaccurate reporting. If this happens firms will either not get coverage or will be called out.

If firms fail in any of the communication areas, they can get accused of ‘ESG or Green Washing’. This immediately turns what the executive hoped would be a positive area of communications into a potential crisis scenario. Companies accused of green-washing face a very difficult time and a lot of hard work to rebuild their reputations.

This is why we always start the process by making sure that aligning to ESG is the right approach for a company. If it is, and the company has invested in ESG and this is aligned to the business, then there are great opportunities to use ESG messaging to support financial results and show the strength of the strategy

Going back to the reason why ESG was developed as a reporting standard, it was to show investors the ethical positioning and transparency of companies – to identify companies who care.

If ESG is being used to misrepresent the work of a company and it is just ESG-washing the approach fails. There is an increasingly large number of investors who are becoming disillusioned with ESG because of the lack of regulation and no clear standards These investors are questioning the true benefits of their investment in this sector.

So, I will end with the comment from Larry Fink of BlackRock

“I don’t use the word ESG anymore, because it’s been entirely weaponised … by the far left and weaponised by the far right.”

If we are communicating ESG we need to make sure we are not just creating ESG-washing and becoming part of the problem. Many firms can and should communicate on their CSR and environmental work but will need time to develop an ESG programme which can be effectively communicated.

Effective ESG communications are rewarding, beneficial and for some companies’ game changing. We love working in this area but are always pragmatic about what can be achieved.

By Habib Bacha

Habib Bacha is founder of Credo Communications LLC – Media Consulting Company

For more op-eds, head here

7 months ago 0 comments

Developing Policy & Finance

Vera Spender Koubek on Building a Sustainable Business | Video

by rachel 8 months ago

written by rachel

“Running a company sustainably goes beyond just profit”, says Vera Spender Koubek, Sustainable Finance Expert at LIBF. This conversation explores actionable strategies for embedding sustainability in business and corporate practices, emphasising the balance between growth and environmental responsibility.

Vera Spender Koubek has significant experience in sustainable business operations, training, and leadership and people management.

8 months ago 0 comments

Environment Finance Special Reports Uncategorized

Bain & Company and WEF: ‘Prioritising Sustainability in MENA’ | Report

by rachel 8 months ago

written by rachel

A new report by global management consulting firm Bain & Company in partnership with the World Economic Forum (WEF) titled ‘Prioritising Sustainability in MENA: Mapping Critical Environmental Issues for Regional Businesses’ highlights the environmental challenges facing businesses across the MENA region and provides a roadmap for corporate leaders to align their operations with sustainability goals.

Historic commitments were made at COP28 in Dubai in 2023, and the region is under mounting pressure from investors, regulators and global markets to enhance transparency, accountability and sustainability practices.

The UAE made several pledges as the host of COP28, including various climate financing efforts, such as the $200 million contribution to the International Monetary Fund’s Resilience and Sustainability Trust to fund climate resilience in low-income countries. Furthermore, the UAE made a $30 billion investment towards a climate fund intended to mobilise $250 billion by 2030 to help finance climate initiatives.

“The MENA region is at a crossroads, where the choices made today will determine the sustainability and resilience of its economy in the coming decades”, said Abram Alami, Middle East Head of Utilities, Aviation, and Sustainability and Responsibility Practices at Bain & Company.

“This report provides businesses with the tools and insight they need to navigate the complex sustainability landscape and take decisive action.”

Key findings:

1 – Post COP28 Pressure

The MENA region is at a pivotal point in its sustainability journey – especially considering the landmark commitments made at COP28. Net zero pledges now cover 70 per cent of MENA’s emissions, up from 60 per cent two years ago. However, the report finds that businesses still lack clear tailored guidelines to meet these ambitious goals effectively.

2 – Environmental Materiality Assessments

The report emphasises the importance of environmental materiality assets as a critical starting point for companies aiming to meet sustainability goals. By prioritising issues that are most relevant to their industry and sector, MENA businesses can improve risk management, transparency and investor confidence.

3 – Sector-Specific Recommendations

The report outlines sector-based roadmaps. “MENA businesses have a unique opportunity to lead by example and redefine sustainable growth,” said Raja Atoui, Partner and Leader within the Energy & Natural Resources and Sustainability & Responsibility Practices at Bain & Company.

“Our sector-specific recommendations are designed to empower organisations at every stage of their sustainability journey – from those taking their first steps to those looking to achieve full environmental transparency.”

Industries such as oil and gas, retail, financial institutions, and utilities, received tailored recommendations on how to measure and disclose environmental impacts.

4 – The Role of Governments

Government leadership remains crucial in fostering sustainability across MENA. Policy and decision-makers must continue to set clear regulations, provide financial incentives, and support collaboration between public and private sectors to accelerate the region’s transition to a more sustainable economy.

Industry and Government Collaboration is key:

The report acknowledges the significant progress made by major corporations in integrating sustainability into their core business practices. However, it stresses the importance of broader collaborations to ensure these advancements reach small and medium enterprises (SMEs) that play a critical role in the MENA economy. The region can better meet environmental and economic goals by fostering a collective effort across supply chains.

Looking ahead:

Sustainability is becoming a defining element of business strategy, but the report calls for more robust collaboration between the public and private sectors, the adoption of regional sustainability reporting frameworks, and the acceleration of policies that support a sustainable future. With this new roadmap, MENA businesses can strengthen their environmental resilience and contribute effectively and meaningfully to global sustainability efforts.

Read the full report here

8 months ago 0 comments

Governance Latest News

Dubai Chambers Hosts Legal Workshops for Local Businesses

by Madaline Dunn 1 year ago

written by Madaline Dunn

Dubai Chambers recently hosted three legal workshops aimed at familiarising the local business community with key aspects of maritime law, data protection, and bounced cheques.

The legal workshops, attended by a total of 226 participants from the private sector, aimed to raise awareness of the latest legislative developments impacting different sectors.

The UAE Maritime Law workshop provided a comprehensive overview of Federal Decree-Law No. 43 of 2023 on Maritime Law, organised by Dubai Chambers in cooperation with Al Tamimi & Company.

The session explored the legal obligations surrounding various types of Bills of Lading (BoL), including electronic BoLs, changes relating to the limitation of liability and the settlement of maritime disputes.

Participants also discussed the different categories of marine insurance, legal issues relating to cargo insurance claims, and marine debris removal provisions.

Elsewhere, the ‘Data Protection Compliance in Recruitment and Recruitment Practices’ webinar, presented in collaboration with Galadari Advocates & Legal Consultants, examined the legal framework for complying with data protection regulations in the UAE.

The online session addressed the impact of data protection and privacy on companies’ handling of recruitment, employee record-keeping, and other human resources-related activities, as well as the transfer of employee data.

Meanwhile, the webinar on the implications of bounced cheques in cooperation with Clout Law Firm clarified the legal responsibilities arising from bounced cheques, in addition to the rights of beneficiaries and means of recourse available to resolve payment disputes.

1 year ago 0 comments

Governance Latest News

NBF Hosts Knowledge-Sharing Event to Drive Implementation of ESG Programmes

by Madaline Dunn 1 year ago

written by Madaline Dunn

The National Bank of Fujairah (NBF) recently hosted a knowledge-sharing event aimed at accelerating the implementation of ESG programmes.

The event, held under the theme ‘Accelerating ESG: Turning Plans into Results’, was organised in partnership with the London Stock Exchange Group (LSEG) Data and Analytics team.

A hybrid event, it shared practical guidance and actionable insights for building a meaningful ESG programme and was attended by more than 100 delegates from a diverse range of industries, including both NBF and non-NBF clients, it was shared.

One panel discussion titled ‘Maintaining a sustainable business’, moderated by Luma Saqqaf, Director for the Middle East, Africa, and India region (IMEA), UN PRI (Principles of Responsible Investment), emphasised the importance of building a meaningful ESG programme and taking a holistic approach towards sustainability to stay ahead of the curve while remaining both profitable and competitive.

Panellists included Jessica Robinson, Partner at Solve Strategies, Rach ElGolli, Senior Responsible Finance and Sustainability Advisor at Sustainable Square, and Gouban Gopal, ESG Director, Grant Thornton UAE.

The event was the latest in NBF’s knowledge event series aimed at advancing the commitments made during COP28. The event series also recently explored investment management and Islamic finance, and will run throughout 2024.

1 year ago 0 comments

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