Finance

Jadwa acquires stake in Gissah Perfumes

By Pramod Kumar

August 24, 2023, 7:14 AM

Gissah is a 'rising star' in the GCC's perfume sector with 80 stores in 25 cities — Executives from Jadwa and Gissah sign the deal

Jadwa Investment, a Riyadh-based investment management and advisory firm, has acquired a 35 percent equity stake in Kuwait’s Gissah Perfumes Company, with plans for a listing on the Saudi Arabian bourse.

The stake was purchased through Jadwa Retail Opportunities Fund, the companies said in a joint statement.

Founded in 2018, Gissah has 80 stores in 25 cities across Saudi Arabia, Kuwait, UAE and Bahrain.

“Gissah is a rising star in the GCC’s perfume sector,” Elie El-Khoury, head of private equity at Jadwa Investment, said.

“This partnership represents a new chapter for Gissah, as it will enable us to continue to build on our growth momentum, and prepare the company for a public listing on the Saudi Stock Exchange,” Faisal Al-Shayji, chairman of Gissah, said.

The value of the investment and timelines of the intended listing of Gissah were not revealed.

The wider Middle East and Africa fragrance market was worth $2.6 billion in 2020 and is projected to grow at a compound annual growth rate of 6 percent over 2023-28 to $3.7 billion, according to Expert Market Research.

A separate study by Mordor Intelligence projected annual growth for the GCC’s fragrance and perfumes market to be higher than this, at 8.6 percent over the next five years.

The market is worth $800 million today, according to Chalhoub Group research.

According to Chalhoub’s head of beauty innovation Forat Al Haider, the growth is due to rising consumer spending amid higher oil prices – but increased appetite for Arabic fragrances outside the region is resulting in greater price competition.

“Previously the region was seen as a cash cow for international players and prices reflected that,” he said. “People are now trying to bring down those price points, particularly with the introduction of VAT in the Gulf.”

Jadwa Investment manages assets of $20 billion (SAR 75 billion) in public equity, private equity, real estate, private credit, fixed income and money market investments.