Introduction
In a landmark development poised to reshape Oman’s retail sector, Etlala Jouri Muscat Modern Company (ScottOMAN), a leading Omani real estate and facility management firm, has entered into a strategic partnership with India’s Beyond Squarefeet, a distinguished mall advisory and management group. This collaboration has culminated in the establishment of Mall-IQ, a joint venture dedicated to enhancing the development and management of various real estate assets across the Sultanate. This initiative reflects a concerted effort to elevate the standards of mall management and cater to the evolving demands of Oman’s burgeoning consumer base.
The Genesis of Mall-IQ
ScottOMAN, headquartered in Muscat, is recognized as an SME Riyada company by the Public Authority for Small and Medium Enterprises, underscoring its commitment to advancing Oman’s real estate sector. Beyond Squarefeet, with a portfolio encompassing over 100 projects across countries such as India, Iran, Nepal, Nigeria, Oman, and Qatar, brings a wealth of international expertise to the partnership. Their collaboration through Mall-IQ aims to offer comprehensive solutions for mall owners and real estate developers in Oman, providing enhanced value through innovative strategies and a global perspective.
Strategic Objectives and Vision
Mall-IQ is set to address the growing need for professional asset management in Oman, a trend that has gained momentum as local real estate players increasingly seek specialized companies to manage their properties. By combining ScottOMAN’s local market knowledge with Beyond Squarefeet’s international expertise, Mall-IQ aims to offer bespoke solutions tailored to each asset, thereby helping clients optimize the value of their real estate investments. The venture’s strategic objectives include:
- Implementing Global Best Practices: Introducing international standards in mall management to enhance operational efficiency and customer satisfaction.
- Enhancing Asset Value: Utilizing innovative strategies to boost the long-term profitability and appeal of retail assets.
- Catering to Evolving Consumer Preferences: Adapting to the changing demands of a younger, tech-savvy population by integrating modern retail concepts and digital solutions.
Leadership Insights
Talal Al Foori, Chairman of ScottOMAN, expressed enthusiasm about the partnership, stating, “We are excited to collaborate with Beyond Squarefeet, a company with over 100 malls under its management across multiple countries. This strategic alliance will allow Mall-IQ to deliver world-class services and best practices to our clients, both current and future.” He further emphasized the goal to set new standards in mall management and asset enhancement in Oman.
Susil S. Dungarwal, Chief Mall Mechanic at Beyond Squarefeet, echoed this sentiment, highlighting their eagerness to expand their presence in the Omani market. He noted that the partnership would enable the implementation of best-in-class systems and methodologies, ensuring high-quality services for clients.
Oman’s Retail Landscape: A Sector in Transformation
Oman’s retail sector has been undergoing significant transformation, driven by factors such as population growth, economic diversification efforts, and evolving consumer preferences. The government’s Vision 2040, aimed at reducing dependence on oil revenues, has identified retail as a key sector for economic diversification and job creation.
Demographic Dynamics
A notable aspect of Oman’s demographic profile is its youthful population. This young demographic is influencing retail trends, with developers increasingly modernizing the retail sector to drive footfall and spending. Malls are evolving into entertainment-focused and experience-led destinations, incorporating diverse leisure and entertainment offerings to cater to the aspirations of the younger populace.
E-Commerce and Digital Integration
The e-commerce market in Oman is experiencing rapid growth, propelled by high internet penetration rates and a tech-savvy population. In 2020, Oman’s e-commerce market was valued at $2.2 billion, with projections indicating a compound annual growth rate of over 20% between 2023 and 2028. The shift towards online shopping, accelerated by the COVID-19 pandemic, has led to lasting changes in consumer behavior, prompting traditional retailers to integrate digital solutions and develop omnichannel strategies.
Infrastructure Developments
The expansion of retail space in Oman has accelerated in recent years, with major developers investing in large-scale shopping centers. For instance, the Mall of Muscat, developed by Al Jarwani Group, spans 200,000 square meters and features unique attractions such as the Oman Aquarium—the largest in the Middle East—and a snow park. Such developments exemplify the move towards creating experience-led retail destinations that cater to the evolving preferences of consumers.
Government Initiatives and Local Production
The Omani government is actively promoting local production and the participation of small and medium-sized enterprises (SMEs) in the retail sector. Initiatives such as the “Made in Oman” campaign aim to boost the contribution of local producers, enhancing the diversity and resilience of the retail ecosystem. The Public Establishment for Industrial Estates, known as Madayn, in cooperation with the Small and Medium Enterprises Development Authority, has established turnkey industrial sites with shared facilities to accommodate multiple SMEs, fostering innovation and competitiveness.
The Role of Professional Asset Management
The establishment of Mall-IQ underscores the critical role of professional asset management in optimizing returns on real estate investments. As the Omani market evolves, the need for specialized management to maximize asset value and long-term profitability becomes increasingly evident. Mall-IQ is poised to lead this transformation by offering tailored solutions that align with global best practices, thereby enhancing the overall quality and appeal of retail assets in the Sultanate.
Future Prospects and Strategic Implications
The collaboration between ScottOMAN and Beyond Squarefeet through Mall-IQ is expected to further invigorate Oman’s retail sector. By introducing global best practices and innovative management strategies, Mall-IQ aims to enhance the shopping experience, boost investor confidence, and contribute to the overall economic growth of the Sultanate. The venture’s strategic implications include:
- Attracting Foreign Investment: By elevating the standards of mall management, Oman can position itself as an attractive destination for foreign investors seeking stable and profitable opportunities in the retail sector.
- Job Creation and Skill Development: The growth and modernization of the retail sector are anticipated to generate employment opportunities and foster skill development among the local workforce, aligning with the objectives of Oman Vision 2040.
- Enhancing Tourism: World-class retail destinations can serve as significant attractions for tourists, thereby contributing to the growth of the tourism sector and the broader economy.
Conclusion
The formation of Mall-IQ marks a pivotal moment in Oman’s retail industry. This Oman-India joint venture not only signifies a strategic partnership between two leading companies but also represents a commitment to elevating the standards of mall management and development in the region. As Mall-IQ embarks on this journey, the future of Oman’s malls looks promising, with enhanced services and enriched experiences awaiting consumers and stakeholders alike. The venture’s success is poised to set a benchmark for future collaborations and innovations in the retail sector, reflecting the dynamic and evolving nature of Oman’s economy.
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