Abu Dhabi Lands First IKEA Store, Opening Spring 2011

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(YAS ISLAND, ABU DHABI) -- IKEA UAE, part of Al-Futtaim group announced it expects to serve nearly 1.3 million visitors in the first year of operations when the world's best known furniture and furnishing company opens for business on Yas Island, the major new leisure and entertainment destination under development in Abu Dhabi by Aldar Properties, in early 2011.

The announcement was made following a formal ground breaking ceremony on Yas Island involving senior management from Al-Futtaim, IKEA and Aldar Properties and the media.

Mile Franicevic, Group Director - Retail, Al-Futtaim said IKEA was looking forward to be one of the first globally recognized retailers on Yas Island. The IKEA store will be a complete family destination and will form part of Yas Island's retail centre based around Yas Mall, featuring a wide range of retail categories from individual boutiques to large format value retailers.

The present IKEA store in Marina Mall will relocate to Yas Island where it will be a full-fledged concept store. IKEA also operates a store at Dubai Festival City.

"The IKEA store on Yas Island will be a complete family destination and will serve the IKEA concept with its full service-warehouse. We have already determined the ideal store size and depth of range, and if all goes well, are hoping to be up and running within one year from today," Mr. Franicevic said.

"The groundbreaking event clearly signals IKEA's long term plans of being part of the country's high growth area. It is also an enormous milestone for IKEA which will be one of the first globally recognized retailers to operate from Yas Island."

In addition to the Yas Marina Circuit, the host venue for the Formula 1 Etihad Abu Dhabi Grand Prix. Yas Island is also home to seven hotels including the signature Yas Hotel and Yas Marina, a super-yacht marina with capacity for over 140 yachts. Yas Links Golf, the first "Links" Golf Course in
the Middle East will open in the coming months and Ferrari World Abu Dhabi, the world's first Ferrari theme park will open later this year.

In addition to the retail venues under development, further leisure, hospitality and residential elements are planned for Yas Island.

Mr. Franicevic confirmed the 32,000sqm flagship store will be a strong impetus for the Swedish retailer to push ahead with plans to expand into the region.

"Our business continues to grow in the Middle East, more so in the present economic environment. This is proof of the strength of the IKEA brand in this part of the world and the intense loyalty of our customers. We expect around 1.3 million visitors to the Yas Island store in the first year of operations," he added.

IKEA store on Yas Island will have 1,500 parking bays for its visitors who will be served by 35 cash tills at the back of a total sales area of 19,150sqm. The cash tills include refund/exchange desks and IKEA Food & Beverage counters. Alongside Market-Hall (6,000sqm) and Showroom Furniture (6,150sqm) areas, there will also be a 550-seat, 2,100sqm restaurant serving popular Swedish delicacies as well as its healthy and affordable breakfast and lunches. There is also an exciting and fun IKEA play area for the young customers.

Speaking at the event, Mohammed Al Mubarak, Chief Commercial Officer, and Aldar Properties, commented: "It is a great honor to celebrate this momentous occasion with our colleagues from Al-Futtaim and IKEA. Aldar is committed to bringing the very best international brands to Yas Island and all its retail developments, and the start of construction on the Middle East's finest IKEA store is a great milestone in achieving this goal."

Mr. Franicevic also said delivering genuinely low prices to our customers is a top priority for IKEA. "The IKEA vision is to offer a wide range of home furnishings of good design and function at prices so low that the majority of people can afford to buy them," he said.

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