MAGRABi, Rivoli Vision announce merger in shake-up for Middle East eyewear market

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Updated 25 September 2024
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MAGRABi, Rivoli Vision announce merger in shake-up for Middle East eyewear market

MAGRABi, Rivoli Vision announce merger in shake-up for Middle East eyewear market
  • MAGRABi will take over 89 Rivoli Vision stores across the UAE, Qatar, Oman, and Bahrain
  • Expansion is accompanied by a robust investment strategy aimed at enhancing the end-to-end customer experience

RIYADH: The Middle East’s eyewear market is set to be reshaped by a merger between MAGRABi Retail Group and Rivoli Vision which will see a focus on innovation and customer experience.

According to Amin Magrabi, chairman of MAGRABi Retail Group, the deal will see store concepts integrated with digital platforms to offer a comprehensive range across luxury, premium, and mainstream segments.

MAGRABi will take over 89 Rivoli Vision stores across the UAE, Qatar, Oman, and Bahrain, expanding the firm’s footprint to seven countries and over 290 locations by the end of 2024.

A perfect fit for the future

Speaking to Arab News, Magrabi described the creation of the MAGRABi-Rivoli Enterprise as “a very exciting announcement for us.” 

He added: “The industry is maturing, and as industries mature, scale becomes important. We have been in discussions for a while, looking for the perfect fit, and I truly believe that Rivoli Vision is a perfect fit for us in terms of the brand, the banner they bring, Rivoli EyeZone, the culture, the team, and the location.”

Magrabi highlighted that the synergy between the two companies is grounded in their shared vision for the future of the industry. 

He underscored the significance of aligning in vision and culture, emphasizing that success hinges on a mutual understanding of the industry, a complementary approach, and a shared commitment to enhancing customer experience.

Ramesh Prabhakar, vice chairman and managing partner of Rivoli Group, said in a press release: “MAGRABi is the ideal partner to form this joint enterprise, positioning us as the top eyewear retailers in key geographies and economic centers of the Middle East.”

Magrabi also pointed out that both companies’ shareholders share a unified perspective on the future, making their collaboration with Rivoli Vision and MAGRABi Retail Group both effective and harmonious.




MAGRABi will have a presence in seven countries and over 290 locations by the end of 2024. Shutterstock

A future-ready investment strategy

The expansion is accompanied by a robust investment strategy aimed at enhancing the end-to-end customer experience. 

“With the additional network and scale that comes with it, it obviously allows us to further invest and to increase our investments in enhancing the end-to-end customer experience, both offline and online,” Magrabi shared.

Yasser Taher, CEO of MAGRABi Retail Group, also shared his perspective on the merger’s financial and operational impact, emphasizing the anticipated growth and strategic advantages. 

“The newly merged entity is expected to deliver double-digit revenue growth and high double-digit EBITDA (earnings before interest, taxes, depreciation, and amortization) growth, from identified synergies, during the period from 2025 – 2027,” Taher said.

He further elaborated on the operational strategies post-merger, saying: “We expect the integration timeline plan to be completed within a period of 15 months after closing. The synergy realization plan will overlap with the integration plan and should be completed over a period of 24 months.”

Completion of the transaction remains subject to satisfaction of commercial and regulatory conditions.

Taher also gave details about a “new headless online platform” which will see customers engage with the company on any platform at any time, from any place. 

He went on: “They can click and collect from the store or get it delivered to their house. They can hold products in the store, book their eye tests, and do all this through the website or the app on their phone.”

MAGRABi Retail Group has already committed to substantial investments in digital transformation and store enhancements, with annual expenditures exceeding SR100 million ($26.6 million) over the past three years. 

Magrabi expects these numbers to increase significantly in the coming years, reinforcing the company’s position as a leader in the region’s eyewear market.

“We will carry on making those investments, and they will obviously increase, not insignificantly above what we have been doing previously,” the chairman said.

He also discussed the strategic improvements expected in supply chain and inventory management due to the merger. 

He said: “The scale of the new entity will enable higher investment into supply chain automation, including further investment in our manufacturing facilities, warehouse operations, our central glazing lab network, and last-mile delivery fulfillment.”

Magrabi added that the impact will be measured through a more efficient supply chain, faster lead time delivery customers, improved costs, and an optimized inventory value.




Amin Magrabi, chairman of MAGRABi Retail Group. Supplied

Strategic market leadership

The merger is also set to strengthen the Group’s strategic positioning across the Middle East.

Magrabi said: “Our three-year strategy plan from 2025 to 2027 is really to focus on how we can establish leadership across all seven countries we now operate in. We plan to carry on our leadership position in the region.”

The firm’s approach to market segmentation is clear.

“As this market matures, there will be segmentation in the market. From our perspective, we’ve segmented the market into four segments: luxury, premium, mainstream, and value. Our intention is to focus on luxury, premium, and mainstream,” Magrabi added.

He went on to say that these three segments cover about 60 percent of the population and about 80 percent of the market size. 

“We intend to tackle these segments with multiple banners and customer propositions. For example, MAGRABi focuses on the luxury segment, the MAGRABi banner, and the retail chain, while Rivoli EyeZone is a premium banner,” the chairman said.

Taher highlighted the anticipated growth in digital sales, which is a key part of their strategy, saying: “We are expecting a 50 percent year-on-year increase in online sales, every year within the period from 2025 – 2027.”

An institutionalization journey

As MAGRABi Retail Group continues to grow, the company is also committed to institutionalizing its operations and governance.

Magrabi highlighted the importance of this journey, saying: “We behave and run the organization as if it’s a listed company. That is the key objective of shareholders and the board. We have a new board with six independent board directors, subcommittees, a new governance framework, and an upgraded enterprise-wide platform.”

He added: “We are ready to access public markets, whether they be equity or bond markets. However, the final decision as to when we will access those markets has not been taken so far by the shareholders and the board.”

Commitment to ESG and industry standards

The Group’s commitment to environmental, social, and governance principles is central to its long-term strategy. 

The company has taken significant steps to embed these into its operations, with the recent addition of an ESG expert to its board.

“ESG is something that’s core and central to us,” Magrabi said. “We are finalizing our ESG framework and strategy for the next three years.”

One of the key areas of focus is raising industry standards, a commitment exemplified by the establishment of the MAGRABi Optical Academy in Saudi Arabia.

“We’ve partnered with universities for the optometry programs, supporting graduates and raising the standard of opticians and optometrists in Saudi Arabia. This is a program we’d like to bring across the Middle East and the region,” Magrabi stated.

Additionally, the company is focused on circular programs aimed at refurbishing products and maintaining responsible supply chains, alongside continued efforts to provide access to eye care and eyewear for those less fortunate.

“We will carry on investing in these areas, and this merger will empower and accelerate these initiatives,” he added.

A stronger, united future

The integration of Rivoli Vision into MAGRABi Retail Group brings together not just complementary networks and products, but also a shared culture and values.

“Over the last five years, they (Rivoli) have built an amazing organization, which is a great fit for us. They built a fantastic brand, a great network, and most importantly, they have a great team and management. We’re very excited to bring that management within our organization,” Magrabi said.

Looking ahead, MAGRABi Retail Group is optimistic about the journey ahead. The company’s CEO said the market is maturing, and the time is right for this transformation.

“We’re super happy that Rivoli Vision has decided to join us on this journey. This is the start, and I think others will want to join what we are doing,” Magrabi said.

He added: “This transformation is an industry-wide shift, and it’s not just customers calling for this; our developers, vendors, and insurance partners have all expressed a need for differentiated banners and propositions.”

MAGRABi Retail Group’s transformation is far from over, according to the chairman, who said: “This is only the beginning.”

He added: “As one of our values states: ‘We earn our wins, we share our wins, together we see our growth multiply.’ So, I invite our customers, vendors, and partners to join us. This is a very exciting time.”


UAE M1 money supply rises 1.8% in February amid broad liquidity gains

UAE M1 money supply rises 1.8% in February amid broad liquidity gains
Updated 37 sec ago
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UAE M1 money supply rises 1.8% in February amid broad liquidity gains

UAE M1 money supply rises 1.8% in February amid broad liquidity gains

RIYADH: The UAE’s most liquid form of money supply, M1, climbed 1.8 percent in February to 982.9 billion dirhams ($267.6 billion), as both cash in circulation and demand deposits rose, official data showed.

According to the latest data from the Central Bank of the UAE, the monthly increase was driven by a 13.5 billion dirham gain in monetary deposits and a 4.1 billion dirham rise in currency outside banks.

M1 — comprising physical currency and current account balances — is a key measure of liquidity immediately available for household and business spending.

The pickup in M1 comes amid a broader expansion in liquidity across the UAE’s financial system, reflecting stable credit conditions and sustained economic activity. The UAE has been supported by robust non-oil growth, rising investment, and steady financial sector performance heading into 2025.

Broader money aggregates also advanced, with M2 — which includes savings and time deposits in addition to M1 — rising 1.8 percent to 2.36 trillion dirhams, supported by a 25 billion dirham increase in quasi-monetary deposits.

M3, which includes M2 and government deposits, grew 0.8 percent to 2.81 trillion dirhams. The rise was primarily driven by the M2 expansion, offsetting a 19 billion dirham decline in government deposits.

The UAE’s monetary base rose 3.1 percent to 816.6 billion dirhams. The increase was supported by an 11.4 percent rise in overnight deposits and current accounts held by banks and financial institutions at the central bank.

Monetary bills and Islamic certificates of deposit rose 6.2 percent, while currency issuance increased 3.4 percent. These gains outweighed a 6.1 percent drop in reserve account balances.

Banking sector indicators also showed positive momentum, with the country’s gross banking assets, including bankers’ acceptances, rising 1.6 percent to 4.63 trillion dirhams. Gross credit increased by 0.9 percent to 2.21 trillion dirhams, driven by a 17.1 billion dirham rise in foreign credit and a 1.7 billion dirham gain in domestic credit.

Within domestic credit, lending to the private sector rose 0.7 percent, and loans to non-banking financial institutions jumped 5.2 percent. These increases offset a 2 percent decline in credit to government-related entities and a 1.4 percent drop in lending to the government sector.

The country’s total bank deposits climbed by 1.2 percent, reaching 2.87 trillion dirhams at the end of February, up from 2.84 trillion dirhams in January.  

This growth was driven by a 0.8 percent rise in resident deposits and a 5.1 percent increase in non-resident deposits.  

The increase in resident deposits was attributed to higher deposits from government-related entities by 3.8 percent, private sector by 1.4 percent, and non-banking financial institutions by 5.6 percent, which outweighed a 4 percent decline in government sector deposits. 


GCC central banks hold interest rates steady for 3rd time following Fed’s move 

GCC central banks hold interest rates steady for 3rd time following Fed’s move 
Updated 51 min 12 sec ago
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GCC central banks hold interest rates steady for 3rd time following Fed’s move 

GCC central banks hold interest rates steady for 3rd time following Fed’s move 

RIYADH: Gulf Cooperation Council central banks have kept interest rates steady for the third consecutive period, mirroring the US Federal Reserve’s decision to hold its benchmark rate between 4.25 percent and 4.5 percent.

As most currencies in the region are pegged to the US dollar, monetary policy follows the decisions taken in Washington, with policymakers opting to lock the rate at the level it has been since December.  

The freeze comes amid global uncertainty caused by the ongoing trade war, a slowing of economic growth in the US, and unstable inflation trends, according to a statement by the Federal Reserve.

The country’s gross domestic product fell 0.3 percent in the first quarter as a result of slower consumer and government spending and a surge in imports ahead of the tariffs.

The newly released Fed statement said: “In support of its goals, the Committee decided to maintain the target range for the federal funds rate at 4-1/4 to 4-1/2 percent. In considering the extent and timing of additional adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks.”

This decision implies that the Saudi Central Bank, also known as SAMA, will maintain its repo rates at the current level of 5 percent.

The UAE central bank also announced that it has decided to maintain the base rate applicable to the Overnight Deposit Facility at 4.40 percent.

Qatar, Kuwait, and Oman, as well as Bahrain, also mirrored the Fed’s move. 

Repo rates, which represent a form of short-term borrowing primarily involving government securities, underscore the close economic ties and financial dynamics between the GCC countries and the global economic landscape, particularly the US.      

“In assessing the appropriate stance of monetary policy, the Committee will continue to monitor the implications of incoming information for the economic outlook. The Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee’s goals,” the Federal Reserve’s statement said.

It added: “The Committee’s assessments will take into account a wide range of information, including readings on labor market conditions, inflation pressures and inflation expectations, and financial and international developments.”

In April, Fitch Ratings said in a report that Gulf banks face minimal direct impact from new US tariffs but remain exposed to broader risks stemming from weaker oil prices and slowing global growth.

The agency noted at the time that most GCC exports to the US are hydrocarbons, which are exempt from the latest tariffs. Non-oil exports, such as aluminum and steel, which are subject to 10 percent or 25 percent duties, account for only a small share of the trade basket, limiting direct exposure for regional economies and their banking sectors.


GCC market capitalization surpasses $4.2tn, bloc’s secretary-general reveals

GCC market capitalization surpasses $4.2tn, bloc’s secretary-general reveals
Updated 08 May 2025
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GCC market capitalization surpasses $4.2tn, bloc’s secretary-general reveals

GCC market capitalization surpasses $4.2tn, bloc’s secretary-general reveals

RIYADH: Capital markets across the Gulf Cooperation Council surpassed a combined capitalization of $4.2 trillion by the end of 2024, highlighting strong regional economies and sustained investor confidence. 

The figure was revealed by Jasem Al-Budaiwi, secretary-general of the GCC, during his address at the third edition of the “Gulf Smart Investor Award” ceremony held in Riyadh on May 7. 

In his remarks, Al-Budaiwi noted that GCC markets witnessed a total of 336.3 billion shares traded in 2024, marking a 20.9 percent increase compared to the previous year. 

The total value of traded shares reached $682.2 billion, reflecting an annual growth of 28.4 percent.

These gains, he underlined, underscore the confidence of both domestic and international investors and reinforce the importance of continued efforts to build financial awareness and strengthen investor education. 

Al-Budaiwi commended Saudi Arabia for hosting the awards and supporting the GCC’s broader economic agenda. 

“His Excellency the secretary-general pointed out that amidst the astonishing acceleration and profound transformations taking place in financial markets globally and regionally, and in light of the GCC countries’ openness to the global economy, financial literacy is no longer merely marginal knowledge or an intellectual luxury,” an official release stated. 

This positive momentum in GCC markets aligns with broader regional trends. 

In the first quarter of 2025, stock markets across the Middle East and North Africa saw solid gains, with the Arab Monetary Fund’s Composite Index — tracking 16 Arab exchanges— rising 4.37 percent year-on-year. 

The index also posted a 1.55 percent increase on a quarterly basis, reflecting continued investor confidence despite global monetary policy shifts and ongoing geopolitical pressures. 

During his speech, Al-Budaiwi highlighted the central role of financial literacy in navigating increasingly complex and fast-evolving global financial markets, positioning it as a key factor in achieving financial security and long-term economic sustainability across the region. 

The event, part of the GCC-wide investment literacy initiative known as Mulim, was attended by high-level officials, including Saudi Capital Market Authority Chairman Mohammed El-Kuwaiz. 

Al-Budaiwi emphasized that the award serves not only as a recognition of individual excellence but also as a broader message advocating the role of financial knowledge, strategic planning, and a sound regulatory environment in fostering informed investment decisions. 

He commended the efforts of the Saudi Capital Market Authority and partner institutions for their role in supporting initiatives that contribute to financial knowledge across GCC societies. 

Earlier this week an analysis by S&P Global revealed the market capitalization of the Kingdom’s Tadawul All Share Index reached $2.7 trillion at the end of 2024, representing a 10-year rise of 463 percent.

The credit rating agency’s report said the stock market is expected to play a crucial role in materializing the Kingdom’s economic transformation goals outlined in Saudi Arabia’s Vision 2030 initiative. 


Fitch affirms Jordan at ‘BB-’ with stable outlook as reform momentum builds 

Fitch affirms Jordan at ‘BB-’ with stable outlook as reform momentum builds 
Updated 08 May 2025
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Fitch affirms Jordan at ‘BB-’ with stable outlook as reform momentum builds 

Fitch affirms Jordan at ‘BB-’ with stable outlook as reform momentum builds 

RIYADH: Jordan’s long-term foreign-currency issuer default rating has been affirmed at “BB-” with a stable outlook by Fitch, citing the country’s macroeconomic stability and progress in fiscal and economic reforms. 

The US-based credit rating agency added that the grade, along with the stable outlook, also reflects Jordan’s resilient financing sources — including a liquid banking sector, a robust public pension fund, and continued international support. 

Despite the stable outlook, Jordan’s credit rating remains lower than that of several other countries in the region. In February, Fitch affirmed Saudi Arabia’s IDR at “A+” with a stable outlook, while the UAE was rated “AA-.” 

In its latest report, Fitch stated: “The ratings are constrained by high government debt, moderate growth, risks stemming from domestic and regional politics, and current account deficits and net external debt that are higher than rating peer.” 

According to the agency, a “BB” rating signifies elevated vulnerability to default risk, particularly in the event of adverse changes in business or economic conditions over time, although some business or financial flexibility exists to support the servicing of financial commitments. 

The report noted that Jordan’s government remains committed to advancing its three-pillar reforms across the economic, public administration, and political sectors, despite external pressures. 

Fitch added that the pace of reform will continue to be influenced by the need to preserve social stability, resistance from vested interests, and institutional capacity constraints. 

Jordan’s gross domestic product expanded by 2.5 percent in 2024, and Fitch projects growth of 2.7 percent in 2025 and 2.8 percent in 2026. 

“This reflects our assumptions of headwinds from weaker global growth, partly balanced by recovery in tourism from Europe following an easing of regional conflicts. Iraq will remain a dynamic export market for Jordan and nascent trade with Syria could add further impetus,” the report said. 

In April, the International Monetary Fund offered a similar projection, forecasting 2.7 percent growth in 2025, driven by a rebound in tourism and improved domestic demand. 

Fitch also noted that the imposition of US tariffs and the resulting uncertainty will slow global demand, which is expected to impact demand for Jordanian exports. 

Exports to the US accounted for 26 percent of Jordan’s total in 2024, including 27 percent from precious metals and stones — categories that are exempt from duties. 

Apparel made up 56 percent of Jordan’s exports to the US, and this sector faces the risk of a 20 percent tariff. 

According to Fitch, the general government deficit stabilized at 2.4 percent of GDP in 2024, amid higher interest payments and lower capital expenditure. 

The agency projects the deficit will rise to 2.6 percent in both 2025 and 2026, as continued spending restraint is offset by growing interest costs. 

The report further warned that persistent geopolitical risks could negatively impact Jordan’s credit profile, even as it benefits from strong multilateral and bilateral support. 

“As tensions between Israel and Iran remain heightened and the war in Gaza continues, geopolitical risks remain high. Uncertainty remains regarding the course and duration of the conflict,” said Fitch. 

Other factors that could weigh on Jordan’s credit rating include a weakening of support from external partners and a marked increase in external indebtedness. 

Jordan is on track to receive disbursements under its four-year, $1.2 billion Extended Fund Facility with the IMF. 

It has also entered into a new program with the EU, which includes €1 billion ($1.07 billion) in macro-financial assistance. 

Fitch identified several factors that could lead to a rating upgrade, including a sustained decline in government debt as a share of GDP and a return to growth levels above pre-pandemic averages, resulting in lower unemployment.


US Fed sees rising risks to economy as it leaves rates unchanged

US Fed sees rising risks to economy as it leaves rates unchanged
Updated 08 May 2025
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US Fed sees rising risks to economy as it leaves rates unchanged

US Fed sees rising risks to economy as it leaves rates unchanged

WASHINGTON: The Federal Reserve held interest rates steady on Wednesday but said the risks of higher inflation and unemployment had risen, further clouding the US economic outlook as its policymakers grapple with the impact of President Donald Trump’s tariffs.

At this point, Fed Chair Jerome Powell said, it isn’t clear if the economy will continue its steady pace of growth, or wilt under mounting uncertainty and a possible coming spike in inflation.

With so much unsettled about what Trump will ultimately decide and what of that survives possible court and political battles, “the scope, the scale, the persistence of those effects are very, very uncertain,” Powell said in a press conference at the end of a two-day policy meeting.

“So it’s not at all clear what the appropriate response for monetary policy is at this time ... It’s really not at all clear what it is we should do,” he said, adding: “I don’t think we can say which way this will shake out.”

It was Powell’s subtle way of saying the US central bank, a key actor in shaping the economy, was effectively sidelined until Trump’s sweeping policy agenda takes full effect.

The Fed’s policy statement, which held the benchmark overnight rate steady in the 4.25 percent-4.50 percent range, noted that since the central bank’s last meeting in March “uncertainty about the economic outlook has increased further,” and that risks were increasing that both inflation and unemployment could increase.

Thomas Simons, chief US economist at Jefferies, said the language downplayed just how much disruption had occurred since the Fed’s March 18-19 meeting, and how unpredictable the outlook had become.

“All of the ‘Liberation Day’ tariff news, the April 9 announcement of a 90-day delay, the back and forth on trade deals and tariff exemptions in the headlines, and the resultant negativity expressed in business and consumer surveys make it impossible to judge what the economic outlook is, let alone whether the skew of risks around it has changed,” Simons wrote, calling Powell “predictably noncommittal” given the situation.

Risks to dual mandate

The Fed’s statement, and much of Powell’s comments to reporters as well, vouched for the economy’s continued resilience, with job gains continuing and the economy still growing at a “solid pace.”

The recently reported decline in gross domestic product in the first quarter, Powell said, was skewed by a record rush of imports as businesses and households tried to front-run expected import taxes, with measures of domestic demand still growing. But even that data demonstrated the dilemma facing the Fed. The rush of front-loading to buy goods and stock shelves won’t likely be repeated, and it

is unclear whether underneath it all demand and investment are starting to weaken — and how that will eventually express itself in “hard” data on inflation and jobs. The Fed’s own “Beige Book” of anecdotal reports about the economy recently gave a dour picture of suspended business deals, falling demand, and rising prices.

“Businesses and households are concerned ... and postponing economic decisions of various kinds,” Powell said. “If that continues and nothing happens to alleviate those concerns, you would expect that to show up in economic data.” The Fed can’t respond, however, until it is clear which way the economy pivots, and how it assesses the risks to its two goals of holding inflation to 2 percent and sustaining maximum employment.

“The current stance of monetary policy leaves us well positioned to respond in a timely way to potential economic developments,” Powell said, affirming a wait-and-see approach that has become the central bank’s calling card in the first months of the Trump administration.

US stock prices extended gains after the release of the Fed’s unanimous policy decision and ended higher on the day. Treasury yields fell, while the dollar gained against a basket of currencies.

Holding pattern

The direction of Fed policy will depend on which of the job and inflation risks develop, or, in the more difficult outcome, whether inflation and unemployment increase together and force the central bank to choose which risk is more important to try to offset with monetary policy.

A weaker job market would typically strengthen the case for rate cuts; higher inflation would call for monetary policy to remain tight.

“For the time being the Fed remains in a holding pattern as it waits for uncertainty to clear,” said Ashish Shah, chief investment officer of public investing at Goldman Sachs Asset Management, adding that “recent better-than-feared jobs data has supported the Fed’s on-hold stance, and the onus is on the labor market to weaken sufficiently to bring a resumption of its easing cycle.”

The Fed’s policy rate has been unchanged since December as officials struggle to estimate the impact of Trump’s tariffs, which have raised the prospect of higher inflation and slower economic growth this year.

When policymakers last updated their economic and policy projections in March, they anticipated reducing the benchmark rate by half a percentage point by the end of this year.