IKEA makes home on Yas

IKEA, the world?s largest home furnishings company, is set to open its largest regional store in Abu Dhabi, as the Swedish company expands its Middle East footprint.

Aldar Properties said yesterday it had signed an agreement with the Al-Futtaim Group to build the store on Yas Island, the leisure destination being developed in the emirate.

The opening of IKEA on the island is another boost to Aldar?s US$40 billion (Dh146.92bn) development, which will host the Formula One Grand Prix for the first time in November.

The Abu Dhabi developer said the island was chosen for the store because of its location within the new growth area of the emirate, and its accessibility, close to a new road network.

IKEA, famed for its low-price, self-assembly furniture, has an existing store in Abu Dhabi at the Marina Mall, in addition to a store in Dubai?s Festival City, currently the largest in the region, which opened in 2005.

The retailer?s expansion of its presence in the UAE capital is part of a switch in its global focus from saturated markets such as the US and Europe to emerging markets that include the Middle East, China and Russia. Despite the financial crisis, IKEA said in May it was planning to push ahead with plans to expand into Oman and Qatar, in addition to opening more stores in Saudi Arabia.