Saudi Arabia's Alhokair to take stake in e-commerce platform VogaCloset

Saudi Arabian retailer Fawaz Abdulaziz Alhokair has agreed to buy a minority stake in e-commerce platform VogaCloset, it said on Wednesday, seeking to boost its online presence.

Alhokair said it will acquire 25.5% of the share capital in the UK-based e-commerce company, with the 68.9 million riyal ($18.4 million) transaction funded through its own resources.

"This deal will allow Alhokair to gain access to a leading international website with a strong position and presence in the Middle East and Saudi Arabia to strengthen its brands and bring it closer to its customers," Alhokair said in a bourse statement.


Online store VogaCloset caters to "fashion enthusiasts" in the Middle East, the e-commerce company's website says.

Shopping mall owner and operator Arabian Centres, founded by Alhokair and spun off in a 2019 listing, will also acquire shares in VogaCloset as part of the deal.

Mall operators in the Gulf region have been delaying new mega-projects as the COVID-19 pandemic and low oil prices upend a retail sector built around huge centres catering to tourists and wealthy locals.

Alhokair said VogaCloset could ultimately be integrated with a joint venture established by Alhokair and Arabian Centres to help to build the two Saudi companies' multi-channel experience for consumers and merchants.