Al Hokair to boost profitability in 2017, says CFO

Fawaz Abdulaziz Al Hokair Company. is expected to post strong profit growth in FY17, driven by measures being taken to boost profitability, as well as King Salman’s recent decree reversing pay cuts for civil servants and military personnel, the company’s chief financial officer Mohammed Abbaoui told Al Arabiya TV.

Last year, Al Hokair focused on high-yielding products, and halted discounts as well as promotions for a while, Abbaoui said.

The company has allocated SAR 113 million worth of provisions, which will likely enable it to deal with inventory during the coming fiscal year, he explained.

The Saudi retailer currently employs 6,000 Saudi workers including women, he noted, adding that replacing expats with Saudi nationals is a sound decision but the company may need around three years to fully implement it.

Fawaz Al Hokair has also established a training academy for nationals, he added.

Saudi Arabia's labor ministry issued an order last Thursday restricting employment in shopping malls to Saudi nationals, who currently make up only one in five staff in the retail sector.

The kingdom has been steadily closing off different areas of employment to foreigners, who comprise about a third of the population, as it aims to create jobs for young Saudis and cut the unemployment rate among nationals, according to earlier reports.