Having reached maturity in their home base, a growing number of Middle Eastern retailers are now eyeing Asia for expansion.

Saudi-based conglomerate Fawaz Abdulaziz Alhokair & Company plans to open 400 stores in Central Asian countries including Kazakhstan, Azerbaijan, Armenia, Georgia and Belarus.

Alhokair, whose portfolio includes amusement and theme parks, restaurant franchises, hotel chains and fashion brand franchises, has reported a surge in net profit of 74.7 million Saudi riyals (US$19.9 million) during the final quarter, more than double the same period in 2010.  

In Saudi Arabia, the company added new fashion brands to its portfolio and currently has about 75 local master franchises, including Gap, Marks & Spencer, Promod and Zara.

“Moving abroad makes sense. At the moment, they have 900 stores in Saudi and they are the market leader in mid-range fashion,” said Farouk Miah, an analyst at NCB Capital.

“For the next stage of growth, the company is going into uncertain territory,” he said. “I will want to see evidence the international expansion is working.”

Also planning to spread wings in Asia are retailers Majid Al Futtaim and luxury ratailer Paris Gallery.

Majid Al Futtaim is a real estate developer which owns Carrefour stores in the Middle East and the giant Mall of Emirates in Dubai.

Paris Gallery has a network of more than 40 luxury stores in Qatar, UAE, Saudi Arabia and Bahrain that offer over 450 international brands across product categories including cosmetics, jewelry, fragrances, apparel, eyewear, watches and accessories.

GB