Investment Destination Dubai: Kim Makes Her Move

Written by Gérard Al-Fil, Dubai

According to «Arab News», an official date for the launch party has not yet been announced. The first dedicated Skims store in the Middle East will be located in the Mall of the Emirates in New Dubai. Commonly referred to as the «MoE,» this shopping center is especially known for its indoor ski slope.

So far, Skims products have been available in the Gulf region mostly online and through third-party retailers such as the local luxury online shop Ounass.

The Gulf – A Celebrity Magnet

The UAE is home to about 11 million residents and attracts an additional 30 million foreign visitors each year. According to analysts at AlixPartners, retail sales in the Emirates are expected to reach around $70 billion, marking a 13% increase compared to the previous year. These positive market prospects, combined with the never-ending buzz around global city Dubai, continue to lure VIPs and brands of every kind looking to make it big in Gulf business.

  • Hollywood star Sarah Jessica Parker once launched her global SJP shoe collection through the Bloomingdale’s department store in Dubai.
  • Eric Trump, the eldest son of Donald Trump, is currently building the Trump Tower for the family business—a 1 billion dollars project along Dubai’s main artery, Sheikh Zayed Road. «An apartment in the 80-story Trump Tower will cost just one Bitcoin,» the president’s son joked during the launch event in late April. As of August 7, the cryptocurrency was trading at 116,000 dollars per coin.
  • Celebrity chef Wolfgang Puck also bet on the Gulf region years ago—but not on Dubai. The Austrian-American culinary star opted for Bahrain and Saudi Arabia, where he still operates three fine dining restaurants to this day.

Evergreens and One-Hit Wonders

A trip to the Middle East with a well-known name is no guarantee of success.

In 2007, German property developer ACI Real Estate launched several luxury construction projects branded with the names of legendary sports figures such as Boris Becker, Michael Schumacher, and Niki Lauda. But the global financial crisis drove ACI into bankruptcy by 2010.

Even well-established brands that are bestsellers in their home countries have had to scale back in the Gulf. For example:

  • German fast-food chain Nordsee, whose fish sandwiches failed to win over Middle Eastern tastes.
  • Swiss insurance company Swiss Life, which had targeted high-net-worth individuals by opening an office in the Dubai International Financial Centre. But by 2012, the company had withdrawn. The reason? Swiss Life had expanded right at the beginning of the Great Recession and had to pull the plug during the market downturn.

Kim’s New Attempt

Even Kim Kardashian has launched a project in Dubai that didn’t last. In 2011, she opened a branch of Millions of Milkshakes in the Dubai Mall with much fanfare. But just a few years later, the milkshake bar closed. Today, shoppers sip hot drinks from the Japanese coffee chain % Arabica in that same location.

The chances are hight that Corporate Arabia will pay close attention to the upcoming Skims launch. Staying true to its slogan, «Solutions for every body,» co-founder Kim Kardashian, alongside designer couple Emma Grede and Jens Grede, creates and markets nightwear, daywear, swimwear, and—since 2023—menswear.