Frankly Speaking: ‘The future of retail is both physical and digital – phygital’, says MAF CEO Alain Bejjani

01 | The future of retail is “phygital”
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Updated 29 November 2021
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Frankly Speaking: ‘The future of retail is both physical and digital – phygital’, says MAF CEO Alain Bejjani

  • Head of conglomerate appears on Frankly Speaking, the series of video interviews with business people and policymakers
  • Bejjani gives his opinion on the economies of Saudi Arabia and UAE, whose resilience is being tested by the pandemic

DUBAI: Business in Saudi Arabia and the UAE is “buzzing,” Alain Bejjani, chief executive officer of the Majid Al Futtaim diversified conglomerate, told Arab News, even as the resilience of their economies is being tested by the pandemic’s unexpected twists and turns.

He gave his opinion on the state of recovery from last year’s coronavirus lockdowns on Frankly Speaking, the series of video interviews with leading business people and policymakers in the Middle East and the world.

“Saudi Arabia (has shown) great resilience during the pandemic, but actually Saudi Arabian measures (to halt the spread of the virus) were quite different from the ones that you have seen in the other markets. I’ve been there in the past few months more than three times and you (can) see that it’s buzzing. It’s coming back,” Bejjani said.

“The UAE had remarkable resilience in 2020 and now is buzzing across the board. We’ve had an excellent second half of the year, especially the third quarter and the fourth quarter that we are in, and basically things are off to a very good start in 2022.”

Business in Egypt is also on a recovery path, he said.

Bejjani has been at the helm of MAF since 2015, consolidating the group’s position as one of the leading retail, hospitality and leisure groups in the Middle East. MAF is well known by consumers throughout the region for its Carrefour supermarkets, its gigantic shopping malls and its Vox Cinemas chain.




Alain Bejjani, CEO of the Majid Al Futtaim group

In the course of a wide-ranging discussion, Bejjani also spoke about the way the pandemic had changed MAF, his plans to give cinema a big boost in the Middle East, and the sustainability of MAF’s businesses, which include a ski-slope in Dubai and another one — set to be the biggest in the world — in the under-construction Mall of Saudi in Riyadh.

On the pace of the post-pandemic economic recovery, Bejjani explained that there could be a financial “hit” to MAF this year, because consumption patterns had changed from online back to in-person retailing.

“So, 2021 was difficult and not 2020. Last year was a difficult year to be able to fulfill and to be able to serve the customers in the safety of their homes, and navigate through the very strict restrictions that we had to deal with because of the pandemic.

“But in 2021 when we had less restrictions or no restrictions, people could go back to stores, the actual consumption changed because people were consuming less. They were not at home anymore as much as they were,” he said.

He said that a full recovery across the board might not come until 2024, adding: “We are in multi-industries and some industries have recovered while others have not yet recovered. So, when you look at our overall results, they are affected by the ones that haven’t recovered yet.”


READ MORE

How Majid Al Futtaim is getting to grips with the coronavirus ‘tsunami’


Elaborating on the topic, Bejjani said: “For example, the cinema business and the L&E (leisure and entertainment) business — this is a business that’s recovering slower than others and is now actually affected by supply-chain issues.

“When you look at the cinema business, this is a business that was really affected in 2021 not only by the limitations on occupancy, but also by the fact of the unavailability of movies because of production delays and all the supply-chain issues that were triggered by the pandemic.”

In Saudi Arabia, where MAF has been expanding rapidly over the past five years, growth was being spurred by the reform strategy of the Vision 2030 plan to diversify the economy, according to Bejjani.

“What’s happened in Saudi Arabia in the past five years is a blessing. Everyone was dreaming to have Saudi Arabia open up; to have Saudi Arabia come back; to actually become a vibrant and even more vibrant economy, a more inclusive economy; to get women back into the workforce and also into a role in society; to get entertainment back into the Kingdom,” he said.

MAF’s most prestigious project to date in the Kingdom is the Mall of Saudi, a $4.3 billion retail and leisure complex under construction in north Riyadh, due to open in 2025. Bejjani is confident that “mall culture” will overcome the challenges thrown up by the pandemic, but that the lockdowns will change the nature of the business in significant ways.




Frank Kane hosts Frankly Speaking: Watch more episodes.

“This is, of course, for us a very important, substantial investment and a very strategic project. We’re doing it because we really believe in the future of retail and we really believe that the future of retail is both physical and digital. There is this new word now that’s coined, it’s called ‘phygital,’ and we are seeing that more and more.

“Malls are not only spaces where you actually transact, where you actually shop for something. It’s a place where people come together. It’s a place where people meet. It’s a place where friends and family spend time and create great moments together. Of course they shop, dine or consume entertainment, but also build bonds. This is what malls’ new roles are,” he said.

The Mall of Saudi will be home to the biggest ski-slope and snow dome in the world. Some environmentalists have questioned the building of gigantic indoor snow-park facilities in the Middle East, especially as concerns grow about climate change.

But Bejjani is adamant that the new ski center in Riyadh will comply with the strictest environmental and energy regulations, like Ski Dubai in the UAE does. “There is a lot of misconception around indoor ski slopes,” he said.

“If you look at Mall of the Emirates’ Ski Dubai or the one that you’re going to be having in our Riyadh project, these are actually LEED (Leadership in Energy and Environmental Design) certified assets.

“It actually has been improving quite a lot. We’ve been putting a lot of technology and investment in order to make it as sustainable as possible. So, when you look at the actual slope, it is within a fridge that preserves heat and preserves cold, so minimizes the heat going out and preserves cold inside. And we have a lot of technology to make sure that we actually use the least electricity possible and generate and have the lowest possible carbon footprint.”


READ MORE

Majid Al-Futtaim chief kicks off “humungous” Mall of Saudi project


One part of the business set for big growth is the Vox Cinemas chain, which pursued an aggressive roll-out of new venues after the ban on cinemas in Saudi Arabia was lifted in 2018, only to be shut later by the pandemic. Bejjani says he is confident Vox can win business back from the at-home streaming services like Netflix that did so well during the lockdowns.

“People love the experience. Cinema is an experience that you share with others and there is nothing like the magic of being in a theater and people laughing together and living those emotions together,” he said.

Consumers had “maxxed out” on Netflix during the lockdown phase, he added.

One challenge MAF is planning to confront head on is the lack of new content, and specifically regional content, in the Middle East movie industry. Shutdowns in Hollywood and Bollywood studios during the pandemic meant a shortage of new material for movie-goers.

“Saudi Arabia is a fantastic market for local content, whether it’s Arabic content, whether it’s Khaliji or Egyptian content, and this is where we need and we are driving a lot of effort to make sure that we enable that local content much more,” he said.

Vox is sponsoring the forthcoming Red Sea Film Festival as a way to demonstrate its commitment to creating a regional production and distribution network to raise the level of local content in cinema.

“We have a huge market with a lot of young and not-so-young cultural-product consumers that want local content,” Bejjani said. “This is how we can contribute to the rebirth of our civilization, and the rebirth of the cultural life in our part of the world.”


Asharq crowned ‘Telly Media Company of the Year’ globally for second year running

Updated 21 May 2025
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Asharq crowned ‘Telly Media Company of the Year’ globally for second year running

  • Network bagged 160 awards across various categories, including 25 gold, 76 silver and 59 bronze.

Riyadh: Asharq Network has won the “Telly Company of the Year” award for the second consecutive year.

The accolade recognizes the network’s efforts in producing impactful, high-quality content. In total, Asharq Network received 160 awards across various categories, including 25 gold, 76 silver and 59 bronze.

The network stood out among 13,000 record-breaking entries from five continents. Its winning work includes content from across all Asharq Network brands, including Asharq News, Asharq Business with Bloomberg, Asharq Documentary, Asharq Discovery.

“We are deeply honored to receive the Telly Company of the Year award for the second consecutive year. This achievement reflects the hard work, creativity and passion of our entire team, who continue to push the boundaries in creativity and media,” said Nabeel Alkhatib, general manager of Asharq News.

“This recognition reinforces our commitment to providing our audience with the most insightful and engaging content, tailored to the evolving needs of the Arabic-speaking world.”

Mohammed Alyousei, general manager of Asharq Discovery and Asharq Documentary, said: “Receiving this honor is a profound affirmation of our team’s unwavering commitment to excellence and innovation. This global recognition motivates us to continue pushing the boundaries of storytelling, ensuring that we deliver narratives that resonate and make a meaningful impact.”

Asharq Network’s storytelling and production quality were recognized across multiple categories. Asharq News and Asharq Business standout wins included coverage of the “US Elections Campaign,” the immersive VR Story on the “Destruction of Gaza,” the “Year-Ender 2024 Promo,” and the innovative “Business Image Promo — Connect the Dots.”

Asharq Documentary’s powerful “Faces” series was honored alongside compelling promos for the original documentaries “Under the Rubble,” “Beyond Sednaya,” “Moataz Aziza,” “Amazing Mercy of Tents” and “Dooms Day.” Meanwhile, Asharq Discovery’s gripping “Dark Minds” series and the dynamic “Shark Week” idents captured the judges’ attention, showcasing the network’s creative versatility and commitment to impactful content.

Steven Cheak, director of creative and branding services at Asharq Network, said: “Winning at the Telly Awards once again is a monumental achievement for our young and passionate team. Competing among such esteemed global brands only motivates us to continue elevating the standard of content creation. This year’s win underscores the brilliance of teams working well together, embracing technology, to achieve content that engage and resonate with our audiences. It’s truly inspiring to see our work being acknowledged globally, and this recognition fuels our passion to continue innovating, creating and telling stories that matter.”

The Telly Awards, established in 1979, are one of the most respected global awards programs, celebrating the best in video and television content. The awards cover a diverse range of categories, from traditional television commercials to cutting-edge digital media.


UAE launches Arabic language AI model as Gulf race gathers pace

Updated 21 May 2025
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UAE launches Arabic language AI model as Gulf race gathers pace

  • Falcon Arabic, developed by Abu Dhabi’s Advanced Technology Research Council (ATRC), aims to capture the full linguistic diversity of the Arab world

DUBAI: The United Arab Emirates launched a new Arabic language artificial intelligence (AI) model on Wednesday as the regional race to develop AI technologies accelerates in the Gulf.
Falcon Arabic, developed by Abu Dhabi’s Advanced Technology Research Council (ATRC), aims to capture the full linguistic diversity of the Arab world through a “high-quality native (non-translated) Arabic dataset,” a statement said.
It also matches the performance of models up to 10 times its size, it said.
“Today, AI leadership is not about scale for the sake of scale. It is about making powerful tools useful, usable, and universal,” Faisal Al Bannai, ATRC secretary general said in the statement.
ATRC also launched Falcon H1, which it said outperforms competitors from Meta and Alibaba by reducing the computing power and technical expertise traditionally required to run advanced systems.

The UAE has been spending billions of dollars in a push to become a global AI player, looking to leverage its strong relations with the United States to secure access to technology.
US President Donald Trump said during a visit last week that an AI agreement with the UAE creates a path for it to access some of the advanced AI semiconductors from US firms, a major win for the Gulf country.
AI was a central theme during Trump’s visit to Saudi Arabia as well, which is pitching itself as a prospective hub for AI activity outside the US.
The kingdom launched a new company earlier this month to develop and manage AI technologies and infrastructure, which is also aiming to offer one of the world’s most powerful multimodal Arabic large language models, according to a statement.


Google’s unleashes ‘AI Mode’ in the next phase of its journey to change search

Updated 21 May 2025
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Google’s unleashes ‘AI Mode’ in the next phase of its journey to change search

  • Google is also feeding its latest AI model, Gemini 2.5, into its search algorithms and will soon begin testing other AI features

CALIFORNIA: Google on Tuesday unleashed another wave of artificial intelligence technology to accelerate a year-long makeover of its search engine that is changing the way people get information and curtailing the flow of Internet traffic to websites.
The next phase outlined at Google’s annual developers conference includes releasing a new “AI mode” option in the United States. The feature makes interacting with Google’s search engine more like having a conversation with an expert capable of answering questions on just about any topic imaginable.
AI mode is being offered to all comers in the US just two-and-a-half-months after the company began testing with a limited Labs division audience.
Google is also feeding its latest AI model, Gemini 2.5, into its search algorithms and will soon begin testing other AI features, such as the ability to automatically buy concert tickets and conduct searches through live video feeds.
In another example of Google’s all-in approach to AI, the company revealed it is planning to leverage the technology to re-enter the smart glasses market with a new pair of Android XR-powered spectacles. The preview of the forthcoming device, which includes a hands-free camera and a voice-powered AI assistant, comes 13 years after the debut of “Google Glass,” a product that the company scrapped after a public backlash over privacy concerns.
Google didn’t say when its Android XR glasses will be available or how much they will cost, but disclosed they will be designed in partnership with Gentle Monster and Warby Parker. The glasses will compete against a similar product already on the market from Facebook parent Meta Platforms and Ray-Ban.
AI’s big role in Google search
The expansion builds upon a transformation that Google began a year ago with the introduction of conversational summaries called “AI overviews” that have been increasingly appearing at the top of its results page and eclipsing its traditional rankings of web links.
About 1.5 billion people now regularly engage with “AI overviews,” according to Google, and most users are now entering longer and more complex queries.
“What all this progress means is that we are in a new phase of the AI platform shift, where decades of research are now becoming reality for people all over the world,” Google CEO Sundar Pichai said before a packed crowd in an amphitheater near the company’s Mountain View, California, headquarters.
AI ripples across the Internet
Although Pichai and other Google executives predicted AI overviews would trigger more searches and ultimately more clicks to other sites, it hasn’t worked out that way so far, according to the findings of search optimization firm BrightEdge.
Clickthrough rates from Google’s search results have declined by nearly 30 percent during the past year, according to BrightEdge’s recently released study, which attributed the decrease to people becoming increasingly satisfied with AI overviews.
The decision to make AI mode broadly available after a relatively short test period reflects Google’s confidence that the technology won’t habitually spew misinformation that tarnishes its brand’s reputation, and acknowledges the growing competition from other AI-powered search options from the likes of ChatGPT and Perplexity.
Will AI undercut or empower Google?
The rapid rise of AI alternatives emerged as a recurring theme in legal proceedings that could force Google to dismantle parts of its Internet empire after a federal judge last year declared its search engine to be an illegal monopoly.
In testimony during a trial earlier this month, longtime Apple executive Eddy Cue said Google searches done through the iPhone maker’s Safari browser have been declining because more people are leaning on AI-powered alternatives.
And Google has cited the upheaval being caused by AI’s rise as one of the main reasons that it should only be required to make relatively minor changes to the way it operates its search engine because technology already is changing the competitive landscape.
But Google’s reliance on more AI so far appears to be enabling its search engine to maintain its mantle as the Internet’s main gateway — a position that’s main reason its corporate parent, Alphabet Inc., boasts a market value of $2 trillion.
During the year ending in March, Google received 136 billion monthly visits, 34 times more than ChatGPT’s average of 4 billion monthly visits, according to data compiled by onelittleweb.com.
Even Google’s own AI mode acknowledged that the company’s search engine seems unlikely to be significantly hurt by the shift to AI technology when a reporter from The Associated Press asked whether its introduction would make the company even more powerful.
“Yes, it is highly likely that Google’s AI mode will make Google more powerful, particularly in the realm of information access and online influence,” the AI mode responded. The feature also warns that web publishers should be concerned about AI mode reducing the traffic they get from search results.
Even more AI waiting in the wings
Google’s upcoming tests in its Labs division foreshadow the next wave of AI technology likely to be made available to the masses.
Besides using its Project Mariner technology to test the ability of an AI agent to buy tickets and book restaurant reservations, Google will also experiment with searches done through live video and an opt-in option to give its AI technology access to people’s Gmail and other Google apps so it can learn more about a user’s tastes and habits. Other features on this summer’s test list include a “Deep Search” option that will use AI to dig even deeper into complex topics and another tool that will produce graphical presentations of sports and finance data.
Google is also introducing its equivalent of a VIP pass to all its AI technology with an “Ultra” subscription package that will cost $250 per month and include 30 terabytes of storage, too. That’s a big step beyond Google’s previous top-of-the-line package, which is now called “AI “Pro,” that costs $20 per month and includes two terabytes of storage.


Spanish, Belgian broadcasters say Eurovision televoting ‘encourages manipulation’ after Israel’s result at contest

Updated 21 May 2025
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Spanish, Belgian broadcasters say Eurovision televoting ‘encourages manipulation’ after Israel’s result at contest

  • Israeli contestant Yuval Raphael unexpectedly came in second place
  • ‘A system in which everyone can cast up to 20 votes is a system that encourages manipulation,’ says Flemish parliamentarian

LONDON: Spanish and Belgian broadcasters have accused Eurovision Song Contest organizers of “encouraging manipulation” after the Israeli contestant won their public vote and came second in the 2025 competition.

RTVE, Spain’s public broadcaster, and the Flemish VRT have filed complaints with the European Broadcasting Union, the organizer, requesting an investigation into last week’s televoting system results.

Israeli contestant Yuval Raphael unexpectedly came in second place after Austria’s JJ, who won Eurovision with 436 points with his song “Wasted Love.”

Raphael, who was at the Nova Music Festival in southern Israel when Hamas attacked on Oct. 7, 2023, earned 357 combined points from the jury and public at the Eurovision final on May 17. Her result included 12 points, each awarded by the televoters in Spain and Belgium, despite the countries’ juries giving Israel a score of zero.

The Eurovision televoting system allows viewers to vote up to 20 times for a small fee charged for each vote via text or phone call. Each country’s contestant can earn a maximum of 12 points from either a jury or the public vote. To ensure fairness, contestants do not receive points from their own countries.

Katia Segers, a Flemish parliamentarian, said: “A system in which everyone can cast up to 20 votes is a system that encourages manipulation.

“Whether this manipulation occurred in our country and all other participating and non-participating countries must be investigated.”

She added: “The VRT must take the lead in requesting this investigation, and in holding the debate on the televoting system within the EBU, and on Israel’s participation.”

It was Israel’s second year participating in Eurovision while its military forces continue ongoing attacks in the Gaza Strip, which have killed over 52,000 Palestinians since October 2023.

More than 70 former Eurovision participants earlier this month accused Israel’s public broadcaster KAN of being “complicit in Israel’s genocide against the Palestinians in Gaza” and demanded the exclusion of Tel Aviv from the European contest.

Last week’s final performance by Raphael in Basel, Switzerland, was disrupted by pro-Palestine protesters who attempted to storm the stage. The winner, Austria, will host the 2026 edition.

RTVE’s coverage of the event displayed for 16 seconds a black screen with white lettering in Spanish and English that read: “When human rights are at stake, silence is not an option. Peace and Justice for Palestine.”

The message was perceived as a stance against Israel’s participation. Spanish Prime Minister Pedro Sanchez on Monday called for Israel to be treated the same way as Russia following its invasion of Ukraine in 2022 and to be banned from future contests.

Managing Director of Eurovision Martin Green confirmed that the organization was taking Spain and Belgium’s complaint “seriously.”

He said: “It is important to emphasize that the voting operation for the Eurovision Song Contest is the most advanced in the world and each country’s result is checked and verified by a huge team of people to exclude any suspicious or irregular voting patterns.

“An independent compliance monitor reviews both jury and public vote data to ensure we have a valid result. We remain in constant contact with all participating broadcasters of the Eurovision Song Contest and take their concerns seriously.”


McCann Content Studios expands footprint to Saudi Arabia

Updated 20 May 2025
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McCann Content Studios expands footprint to Saudi Arabia

  • Studio is part of FP7 McCann Riyadh

DUBAI: Middle East Communications Network’s social media and creator-focused practice McCann Content Studios is expanding to Saudi Arabia.

Operating as part of creative network FP7 McCann in Riyadh, the studio aims to meet clients’ requirement for social media-led campaigns and influencer partnerships.

“Our expansion into Saudi Arabia is a strategic step forward — not just in footprint, but in how we partner with brands in a market that continues to lead regional transformation,” Tarek Miknas, CEO of FP7 McCann Middle East, North Africa and Turkiye, told Arab News.

He added: “For us, this is about more than scaling services; it’s about building enduring partnerships rooted in trust, performance and relevance — and ensuring we’re structurally set up to support the ambitions of the Kingdom’s most dynamic brands.”

The studio first launched just over a year ago and has since doubled in size, with operations across Dubai, Cairo and Beirut.

It employs more than 100 people, and its services include strategy, creative, social, influencer marketing, production, community management and performance tracking.

Fahad Mugharbel, social media director of FP7 McCann, will lead the practice from Riyadh. Before joining FP7 McCann in April, he worked at Saudi-based entertainment firm UTURN for more than four years.

The Kingdom is defined by “pace, ambition and evolving expectations,” and clients believe “content must do more,” said Amr El-Kalaawy, regional managing director of FP7 McCann Saudi Arabia.

The move is therefore a “natural next step in our growth — one that reflects both the scale of opportunity and the level of partnership our clients expect,” he added.

Going forward, McCann Content Studios plans to expand its “capabilities in data-led content performance and deepen our creator ecosystem,” El-Kalaawy said.