Retailers operating in Syria are likely to see their supply of products choked if economic sanctions are imposed by Arab states.
Many franchise agreements dictate that payment for the goods must be made before stock can be delivered, but the sanctions due to be imposed on Syria could disrupt financial transactions between retailers and their franchise partners, effectively cutting supply.
"The biggest concern now is payment challenges," said Ishwar Chugani, the executive director for Giordano Middle East, a fashion clothing chain with more than 205 stores across the region. "We are working very closely with our franchisee to look at alternative payment methods, but without breaching the sanctions."
Giordano Middle East manages a franchise agreement in Syria with Challah & Berbari, which runs four stores in the country.
The retailer uses Dubai as a logistics hub to supply clothing and accessories to the Middle East, North Africa and the Indian subcontinent.
It ships products to Syria approximately once a month, Mr Chugani said, which could mean stocks run thin very quickly as a result of sanctions.
"We are monitoring the situation and hope to ensure their continued operations," said Mr Chugani.
BinHendi Enterprises, one of the biggest retailers in the UAE, is the master franchisee in the Middle East for the Canadian coffee brand Second Cup.
It has a sub-franchise agreement with Nooran Trading in Syria, operating three coffee shops under the Second Cup brand.
Mohi-Din BinHendi, the president of BinHendi Enterprises, said there had been no problems with payments thus far, but that the situation might change if sanctions were implemented.
"They are paying, they are being very prompt. But if sanctions are imposed, we have to abide by the rules," said Mr BinHendi. "We have to see when the sanctions are done, then we will have to look at the situation more seriously. It's an international thing and affects everyone," he said.
Both Arab and international retailers have been slow to enter Syria due to the often fragile politics of the country. But industry analysts and retailers are convinced the market provides an opportunity for growth once the country is deemed politically stable.
Paris Gallery, a luxury retailer based in Dubai, began the process of finding a franchise partner in Syria, but pulled out of the deal this year after the onset of the unrest. It has now also canned plans to launch a franchise partnership in Iran.
In addition to retailers, the sanctions that are likely to be imposed will also affect retail developers building projects in Syria.
Majid Al Futtaim, which operates malls and Carrefour stores in the Middle East, began work in July on a US$1 billion (Dh3.67bn) retail, leisure and commercial complex in Damascus, despite there having been ongoing unrest for some months. Emaar has partnered with Invest Group Overseas to build Eighth Gate, a mixed-use development set to include a huge shopping mall.
rjones@thenational.ae
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Read more from Johann Chacko
The smuggler
Eldarir had arrived at JFK in January 2020 with three suitcases, containing goods he valued at $300, when he was directed to a search area.
Officers found 41 gold artefacts among the bags, including amulets from a funerary set which prepared the deceased for the afterlife.
Also found was a cartouche of a Ptolemaic king on a relief that was originally part of a royal building or temple.
The largest single group of items found in Eldarir’s cases were 400 shabtis, or figurines.
Khouli conviction
Khouli smuggled items into the US by making false declarations to customs about the country of origin and value of the items.
According to Immigration and Customs Enforcement, he provided “false provenances which stated that [two] Egyptian antiquities were part of a collection assembled by Khouli's father in Israel in the 1960s” when in fact “Khouli acquired the Egyptian antiquities from other dealers”.
He was sentenced to one year of probation, six months of home confinement and 200 hours of community service in 2012 after admitting buying and smuggling Egyptian antiquities, including coffins, funerary boats and limestone figures.
For sale
A number of other items said to come from the collection of Ezeldeen Taha Eldarir are currently or recently for sale.
Their provenance is described in near identical terms as the British Museum shabti: bought from Salahaddin Sirmali, "authenticated and appraised" by Hossen Rashed, then imported to the US in 1948.
- An Egyptian Mummy mask dating from 700BC-30BC, is on offer for £11,807 ($15,275) online by a seller in Mexico
- A coffin lid dating back to 664BC-332BC was offered for sale by a Colorado-based art dealer, with a starting price of $65,000
- A shabti that was on sale through a Chicago-based coin dealer, dating from 1567BC-1085BC, is up for $1,950
More from our neighbourhood series:
RESULT
Bayern Munich 3 Chelsea 2
Bayern: Rafinha (6'), Muller (12', 27')
Chelsea: Alonso (45' 3), Batshuayi (85')
At a glance
Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.
Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year
Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month
Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30
Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse
Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth
Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances
Election pledges on migration
CDU: "Now is the time to control the German borders and enforce strict border rejections"
SPD: "Border closures and blanket rejections at internal borders contradict the spirit of a common area of freedom"
Dengue%20fever%20symptoms
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Profile
Company: Justmop.com
Date started: December 2015
Founders: Kerem Kuyucu and Cagatay Ozcan
Sector: Technology and home services
Based: Jumeirah Lake Towers, Dubai
Size: 55 employees and 100,000 cleaning requests a month
Funding: The company’s investors include Collective Spark, Faith Capital Holding, Oak Capital, VentureFriends, and 500 Startups.
NBA Finals results
Game 1: Warriors 124, Cavaliers 114
Game 2: Warriors 122, Cavaliers 103
Game 3: Cavaliers 102, Warriors 110
Game 4: In Cleveland, Sunday (Monday morning UAE)
A MINECRAFT MOVIE
Director: Jared Hess
Starring: Jack Black, Jennifer Coolidge, Jason Momoa
Rating: 3/5
