The highly anticipated Apple Inc. (NASDAQ:AAPL) retail store opening in Dubai was delayed and may not open until October or even later. The store, which would have been a first for the United Arab Emirates, is set to be located inside the Mall of Emirates. Everything else involving the upcoming store opening remains unchanged.
It was reported earlier this year that Apple would launch their largest retail store ever in the UAE. They would use the store’s massive space to create an exciting way to present products and services. Apple’s entry into the UAE market is a great move for the company as it will provide another stream of revenue. Earlier this week, there was a report that the UAE government caved into Apple’s request to modify laws pertaining to foreign ownership as Apple’s strong history as a formidable company with a proven track record.
Apple worked with UAE government to have the right to open up retail store
Ministry of Economy’s director of trade registration Ahmad Al-Hosani explained, “Apple was licensed in the U.A.E. through the Ministry of Economy according to the requirements of, and in compliance with the Commercial Companies Law, as well as the ministerial resolution on foreign company branches.”
Local regulations mandate all businesses operating in the United Arab Emirates need to be owned at least 51% owned by Emiratis or entirely owned by them if they are not based in free zones. The UAE government is working on a law to benefit foreign companies (like Apple) to operate in the country.
Apple knows the UAE is a desirable market with over 17 million active mobile subscribers. 61% of that group own smartphones, and the iPhone 5S was considered on the of the most popular phones in the country as of 4th quarter of 2014.