UAE’s Epik Foods nears its Saudi growth phase

UAE’s Epik Foods nears its Saudi growth phase
Epik Foods’ goal is to exceed its customer expectations through culinary experiences, sustainable practices, and community engagement. (Supplied)
Short Url
Updated 01 October 2024
Follow

UAE’s Epik Foods nears its Saudi growth phase

UAE’s Epik Foods nears its Saudi growth phase
  • UAE firm has an ambitious vision for its influence in the Saudi market

CAIRO: Saudi Arabia’s food and beverage sector is attracting interest from new businesses at home and abroad, and startup Epik Foods is one of those eying significant expansion in the burgeoning market.

Founded in 2017, the company now operates over 100 brands and 50 locations across the UAE, Saudi Arabia, and Oman. 

The UAE-based firm has emerged as a dynamic and multifaceted F&B group, operating virtual brands, dine-in restaurant concepts, meal plan services, and catering services. 

In an interview with Arab News, Epik Foods CEO and co-founder Khaled Fadly shared the company’s strategy for acquiring a 20 percent share of the Kingdom’s market.

A strategic Kingdom 

Epik Foods has outlined clear objectives for its operations in Saudi Arabia, with Fadly saying the company’s immediate goal is to lay the groundwork for sustained growth and success in the Kingdom.

“Through strategic initiatives, strong partnerships, and a relentless focus on quality and innovation, we aim to carve out a significant presence and become a household name synonymous with exceptional dining experiences,” he said. 

“We are committed to establishing a solid foundation that will support our long-term objectives and ensure our continued success in the region,” he added. 

Looking ahead, Epik Foods has an ambitious vision for its influence in the Saudi market.   

“We aspire to influence the sector by continually innovating, adapting, and setting industry standards,” Fadly said. 

The company’s goal is to exceed its customer expectations through culinary experiences, sustainable practices, and community engagement initiatives.  

“Over the next five years, we aim to capture at least 20 percent of the healthy fast-casual dining market share in major cities like Riyadh, Jeddah, and Dammam, while also expanding our virtual brand presence to cater to the growing online delivery segment. Through these efforts, we envision reshaping the landscape of the Saudi F&B market,” he said. 

Fadly elaborated on the company’s expansion strategy, stating that the expansion strategy in Saudi Arabia is multifaceted, focusing on establishing a strong presence, both physical and virtual.  

“Over the next two years, we plan to open 20 dine-in restaurants in key locations such as Riyadh, Jeddah, and Dhahran for our flagship brands,” he stated.  

“Additionally, we’re launching multiple virtual brands covering diverse cuisines, including Arabic, Indian, Asian, burgers, fried chicken, and desserts which will be available exclusively for delivery through platforms like Jayez and HungerStation,” he added. 

Furthermore, Epik Foods is establishing partnerships with prominent gym institutions to operate Healthy & Co. kiosks within their facilities.  

These kiosks will provide convenient and nutritious post-workout meals, catering to health-conscious individuals and expanding the company’s reach into new customer segments, Fadly explained. 

Fadly confirmed that his company is “actively seeking opportunities” to collaborate with Saudi governmental bodies, adding: “We aim to work closely with the Saudi Food and Drug Authority to ensure compliance with local regulations and standards. Additionally, we are eager to participate in initiatives like the Saudi Vision 2030’s Quality of Life Program, which aims to promote healthier lifestyles and dining options.” 

Through strategic initiatives, strong partnerships, and a relentless focus on quality and innovation, we aim to carve out a significant presence and become a household name synonymous with exceptional dining experiences.

Khaled Fadly, Epik Foods CEO and co-founder

Epik Foods has set ambitious growth objectives for the next year, aiming to open five new dine-in restaurants, achieve a 30 percent increase in online delivery sales, and secure partnerships with at least three major gym chains for its Healthy & Co. and Prep & Co. brands.  

“In the Saudi market, we aim to achieve significant milestones including a projected 60 percent increase in revenue, doubling our dine-in restaurant footprint, and establishing ourselves as a recognized leader in healthy dining options,” stated Fadly. 

Fadly also shared news about new products tailored for the Saudi market. “We’re excited to launch our Daily Meal Kits featuring pre-packaged meals inspired by both traditional Saudi cuisine and international favorites,” he said.  

“The Saudi market plays a pivotal role in Epik Foods’ expansion strategy for several reasons. With its large and growing population, strong economy, and increasing demand for diverse culinary experiences, Saudi Arabia presents a significant opportunity for growth,” Fadly stated. 

“By establishing a strong foothold in Saudi Arabia, we can leverage our success to further penetrate neighboring markets and enhance our international brand recognition and reputation. Thus, the Saudi market serves as a cornerstone in our strategic roadmap for sustainable expansion and long-term success,” he added.

“We prioritize maintaining open communication channels with relevant authorities, regularly updating our policies and procedures to align with new regulations, and investing in employee training and development to ensure awareness and compliance at all levels of our organization,” Fadly explained.  

Additionally, the company leverages technology to streamline regulatory processes and minimize compliance risks.  

“We actively participate in industry associations and forums to stay informed and contribute to shaping future regulations, demonstrating our commitment to responsible business practices and regulatory compliance in Saudi Arabia,” he added.

Business fundamentals  

“Throughout our journey within the Saudi Arabian market so far, we’ve encountered various challenges that demanded our attention and strategic maneuvering,” stated Fadly.  

These challenges include navigating the intricate regulatory framework, tailoring offerings to resonate with the distinct Saudi culinary palate, efficiently tackling logistical complexities in supply chain and workforce management, and carving a distinctive identity amidst a bustling landscape of local and global competitors.  

“To tackle these obstacles, we’ve embraced a holistic approach rooted in cultural insights, agile adaptability, and a commitment to delivering quality and innovation,” he added. 

“At Epik Foods, our business model is a fusion of various services tailored to meet the evolving needs of today’s consumers,” Fadly explained.  

The company operates a diverse portfolio comprising dine-in restaurants, innovative virtual brands, corporate catering services, personalized meal plans, and convenient meal kits.  

“While each avenue contributes to our revenue, the primary sources stem from our dynamic virtual brands and bustling dine-in restaurants,” he added. 

“We are proud to share that our company has achieved profitability at the country level,” Fadly revealed.  

“We are excited about this achievement and remain focused on further growth and success in the future,” he added. 

An Epik inception 

“The motivation behind founding our company stemmed from a desire to bring something new and innovative to the F&B market in Dubai,” Fadly recalled.  

In 2017, Fadly and his current co-founder Ranya Basyuni, both transitioning from corporate roles, identified a significant gap in the market, the absence of poke restaurants.  

This realization led to the opening of their first poke restaurant, marking the beginning of their journey in the F&B sector. 

The COVID-19 pandemic in 2020 presented unprecedented challenges, compelling Epik Foods to adapt its business model.  

“This period of adversity prompted us to pivot towards virtual brands, a strategy that not only allowed us to sustain our operations but also to explore new culinary avenues,” Fadly explained. 

The formation of Epik Foods was a strategic move to consolidate their ventures, merging the operations of Happy Platters Kitchen and Sweetheart Kitchen with KR&CO.  

“As we continue to evolve, we are looking forward to announcing the launch of Epik Catering, our catering service, to further expand our culinary footprint and cater to the diverse needs of our clientele,” he added. 

“At Epik Foods, we measure success through a multifaceted approach, relying on key performance indicators such as customer satisfaction scores, revenue growth, and the expansion of market share,” Fadly noted.  

The company is also committed to customer retention and operational excellence, which relies on prioritizing adaptability to local nuances and swiftly responding to evolving consumer preferences.  

“Our top metrics include an analysis of customer feedback and local market penetration,” he added. 

“We have raised a significant amount of funding, which we are strategically utilizing to expand our presence in Saudi Arabia,” Fadly shared.  

Specifically, these resources are being channeled towards opening more than 20 physical dine-in restaurants within the next two years.  

“This investment underscores our commitment to growth and delivering exceptional dining experiences to our valued customers,” he added. 

“Yes, we are actively exploring opportunities to secure additional funding to support our expansion plans,” Fadly confirmed.  

The focus is on enhancing infrastructure, scaling up operations, and entering new markets within Saudi Arabia.  

“Securing additional funds will enable us to accelerate our growth trajectory and better serve our customers in the region,” he said.  

He further shared the company’s current objectives that extend beyond financial metrics. 

“With Saudi Arabia’s vast population and diverse culture, we anticipate becoming integral to their lives and attracting even more customers,” he said. 

“The expansion potential in Saudi Arabia is immense, surpassing that of the UAE, and our success will serve as a regional springboard, enabling us to leverage synergies across neighboring countries,” Fadly elaborated.


IMF warns of economic slowdown, but rules out global recession

IMF warns of economic slowdown, but rules out global recession
Updated 17 April 2025
Follow

IMF warns of economic slowdown, but rules out global recession

IMF warns of economic slowdown, but rules out global recession

WASHINGTON: Rising trade tensions and sweeping shifts in the global trading system will trigger downward revisions of the IMF’s economic forecasts but no global recession is expected, the lender’s managing director said on Thursday.

Kristalina Georgieva said countries’ economies were being tested by a reboot of the global trading system — sparked in recent months by US tariffs and retaliation by China and the EU — that had unleashed “off the charts” uncertainty in trade policy and extreme volatility in financial markets.

“Disruptions entail costs ... our new growth projections will include notable markdowns but not recession,” she said in prepared remarks, adding the outlook would also include higher inflation forecasts for some countries.

“To quote from the ‘Wizard of Oz,’ we’re not in Kansas anymore,” Georgieva told IMF staff and reporters at the IMF headquarters in Washington ahead of the spring meetings of the IMF and World Bank next week.

Elevated uncertainty also raised the risk of financial market stress, Georgieva said, noting that recent movements in US Treasury yield curves should be taken as a warning. “Everyone suffers if financial conditions worsen,” she said.

US President Donald Trump has upended the global trading system with a tsunami of new tariffs, including a 10 percent US duty on goods from all countries and higher rates for some, although those have been paused for 90 days to allow negotiations. China, the EU and other countries have announced retaliatory measures.

The IIMF in January forecast global growth of 3.3 percent in 2025 and 3.3 percent in 2026. It will release an updated World Economic Outlook on Tuesday.

Georgieva, speaking at IMF headquarters in Washington ahead of the spring meetings of the IMF and World Bank next week, gave no details about the expected revisions, but warned that prolonged uncertainty would be costly and said the consequences of the trade reboot would be “significant.”

Georgieva said trade tensions had been bubbling for some time, but were now boiling over, and urged countries to respond wisely to the “sudden and sweeping shifts” seen in tariffs, driving the US effective tariff rate to levels last seen several lifetimes ago and resulting in response by other countries.

“As the giants face off, smaller countries are caught in the cross currents,” Georgieva said. China, the EU and the US were the world’s three largest importers, which meant big spillovers for smaller countries that were more exposed to tighter financial conditions, she said.

Rising tariffs hit growth upfront, she said, noting that past evidence showed that higher tariff rates were paid by importers through lower profits and consumers through higher costs.

In big economies, they could also create incentives for new inward investment, creating new jobs, but this took time.

“Protectionism erodes productivity over the long run, especially in smaller economies,” she said, warning that moves to shield industry from competition also undercut entrepreneurship and hurt innovation.

Georgieva urge countries to continue economic and financial reforms while maintaining agile and credible monetary policy, as well as strong financial market regulation and supervision.

Emerging market economies should preserve their exchange rate flexibility, and donor countries should better protect aid flows to vulnerable low-income countries, she added.

Georgieva also called for cooperation in an increasingly multi-polar world, and urged the largest economies to reach a trade settlement that preserved openness and restarted a global trend toward lower tariff rates and reduced non-tariff barriers.

“We need a more resilient world economy, not a drift to division,” she said. “All countries, large and small alike, can and should play their part to strengthen the global economy in an era of more frequent and severe shocks.”


Libyans grapple with fresh currency devaluation

Libyans grapple with fresh currency devaluation
Updated 17 April 2025
Follow

Libyans grapple with fresh currency devaluation

Libyans grapple with fresh currency devaluation
  • Libyans are facing a sharp deterioration in their purchasing power after a sudden devaluation of the Libyan dinar
  • Libya has Africa’s most abundant hydrocarbon reserves, but it is struggling to recover from years of conflict since 2011

TRIPOLI: Already worn down by years of political turmoil and economic hardships, Libyans are now facing a sharp deterioration in their purchasing power after a sudden devaluation of the Libyan dinar.
Experts have said the national currency’s exchange rate decline came as a consequence of ballooning public expenditures by the country’s rival governments in recent years.
Libya has Africa’s most abundant hydrocarbon reserves, but it is struggling to recover from years of conflict after the 2011 NATO-backed uprising that overthrew longtime dictator Muammar Qaddafi.
It is currently divided between a UN-recognized government in the capital Tripoli and a rival administration in the east backed by general Khalifa Haftar, with the division exacerbating the country’s economic woes.
The Libyan central bank earlier this month devalued the dinar by 13.3 percent, the second such move in five years.
The exchange rate went up to 5.56 dinars to the US dollar from 4.48 — while on the black market it jumped to 7.80 dinars to the US dollar from 6.90.

It has become hard to keep up with our needs for food, medicine, transportation, education and bills

Karim Achraf, Libyan engineer

The impact was immediate, with small business owners and wholesale traders, who rely heavily on the parallel market to obtain foreign currency for imports, seeing their costs surge.
“The currency keeps going down,” said Karim Achraf, a 27-year-old engineer and father of three living in the capital, Tripoli.
“It has become hard to keep up with our needs for food, medicine, transportation, education and bills,” he said.
“We can’t trust our governments with our economy and safety.”
Political deadlock
Despite its vast oil reserves, output remains below pre-2011 levels and the country lacks a robust industrial and agricultural sector.
It is almost entirely dependent on imported food, medical supplies and consumer goods, with oil exports its main source of revenue.
The United Nations Support Mission in Libya (UNSMIL) has expressed alarm following the sudden devaluation, urging both administrations to take “urgent measures to stabilize the national economy.”
“Swift action is essential to reduce the negative impact on the Libyan people, including rising costs of living, declining purchasing power and the erosion of public trust in state institutions and leaders,” it said in a statement.
In Tripoli, dozens of protesters recently gathered outside the central bank headquarters to voice their anger.

Libya's central bank was forced to make the decision to protect what remained of the dinar’s strength

Mahmoud El-Tijani, an economist

But while much of the criticism has been aimed at the bank, some believe it is unfairly blamed for problems stemming from political deadlock and fiscal mismanagement.
Mahmoud El-Tijani, a Libyan economist, said the central bank was “a victim of the executive branch’s failure and division.”
He said it was “forced to make the decision to protect what remained of the dinar’s strength.”
Amid falling oil revenues, the devaluation of the dinar was used as a “last-chance measure to avoid bankruptcy and external debt,” he added.
Libya’s institutions, including its central bank, have for a decade found themselves caught between the rival governments.
Until 2023, the bank was split in two, with an internationally recognized headquarters in the capital and another in the east, with each printing bills signed off by their respective governors.
Last year, the then-governor of the bank fled amid violent tensions surrounding the institution, with the United Nations stepping in to broker a deal for a new governor to be appointed.
Central bank
Jalel Harchaoui, a senior fellow at the London-based Royal United Services Institute, said the central bank was “simply confronting the inevitable consequences of the political choices made by Libya’s ruling factions.”
“These enormous expenditures are highly political, arbitrary, and unsustainable,” he said.
“They are not decided by the central bank, which is a technocratic institution without the military or sociopolitical clout of Libya’s leaders.”
“Blaming the central bank is pure populism,” Harchaoui added, describing the bank as “a scapegoat.”
Anwar Al-Turki, a banker in Tripoli, said the central bank was being “mistreated” by political leaders who had authorized “the highest public spending in modern Libyan history.”
He said the decision makers had little regard for “good governance, financial compliance, or anti-corruption.”


Closing Bell: Saudi main index closes in red at 11,502

Closing Bell: Saudi main index closes in red at 11,502
Updated 17 April 2025
Follow

Closing Bell: Saudi main index closes in red at 11,502

Closing Bell: Saudi main index closes in red at 11,502

RIYADH: Saudi Arabia’s Tadawul All Share Index dipped on Thursday, losing 81.44 points, or 0.7 percent, to close at 11,552.98.

The total trading turnover of the benchmark index was SR4.72 billion ($1.25 billion), as 44 stocks advanced, while only 202 retreated.

The MSCI Tadawul Index decreased by 10.51 points, or 0.71 percent, to close at 1,469.39.

The Kingdom’s parallel market, Nomu, dipped, losing 369.85 points, or 1.27 percent, to close at 28,713.72. This comes as 29 stocks advanced while 60 retreated.

This aligns with a dip in global stock markets with the ongoing worldwide trade war following US President Donald Trump’s reciprocal tariffs introduced earlier this month.

For instance, the Nasdaq index dipped 3.07 percent in the trading session on April 16, closing at 16,307.16, losing 516.01 points.

The best-performing stock was Alistithmar AREIC Diversified REIT Fund with its share price surging by 10 percent to SR6.60.

Other top performers included Dar Alarkan Real Estate Development Co., which saw its share price rise by 3.82 percent to SR22.84, and Allied Cooperative Insurance Group, which saw a 3.44 percent increase to SR16.22.

Al Mawarid Manpower Co. and Jabal Omar Development Co. also saw increases in today’s trading session, with their share prices advancing by 2.10 percent and 1.82 percent to SR145.60 and SR23.52, respectively.

The day’s worst performer was Al-Baha Investment and Development Co., whose share price fell 5.74 percent to SR3.12.

Middle East Specialized Cables Co. and Lazurde Co. for Jewelry also saw declines, with their shares dropping by 4.83 percent each to SR35.50 and SR13.40, respectively.

The top four and five worst performers were Raoom Trading Co. and Saudi Printing and Packaging Co., whose share prices dipped by 4.48 percent and 4.36 percent to SR78.90 and SR10.52, respectively.


Red Sea tensions slash Suez Canal revenue as Egypt pushes diplomatic path

Red Sea tensions slash Suez Canal revenue as Egypt pushes diplomatic path
Updated 17 April 2025
Follow

Red Sea tensions slash Suez Canal revenue as Egypt pushes diplomatic path

Red Sea tensions slash Suez Canal revenue as Egypt pushes diplomatic path

JEDDAH: Amid escalating tensions in the Red Sea, Egypt’s Prime Minister Mostafa Madbouly reaffirmed the country’s commitment to diplomatic solutions as disruptions to international shipping through the Suez Canal led to a dip in revenues.

Speaking at a high-level ceremony on April 16 celebrating the Suez Canal Authority’s Day of Excellence, Madbouly warned that regional instability has already had a significant impact on global trade, with Suez Canal revenues falling to $3.99 billion in 2024 — a stark drop from the record $10.25 billion recorded in 2023.

The decline follows a wave of attacks by Yemen’s Houthis on commercial shipping in the Red Sea, part of the group’s protest against the Gaza conflict. Between November 2023 and January 2024, they targeted over 100 merchant vessels.

Despite these challenges, Madbouly emphasized Egypt’s role as a stabilizing force, asserting that Cairo has deliberately avoided any actions that might undermine regional security. “Egypt has opted for a path of political solutions, working with international partners to address the crisis while ensuring the continued functioning of the canal,” he said in a statement.

The prime minister described the canal as “the heart of global trade,” underlining its historic and strategic value not only to Egypt but to international commerce.

He credited President Abdel Fattah El-Sisi’s leadership for ongoing development efforts, including modernizing the canal’s infrastructure and services.

The Suez Canal Authority also unveiled several new initiatives during the ceremony, including a ship waste management service in partnership with V Group, which aims to position the canal as a certified green route by 2030. Additional projects launched included the region’s first floating pontoon factory and the Suez Canal Innovation and Excellence Center.

In a show of international cooperation, Madbouly witnessed the signing of a memorandum of understanding with Spain’s Tejedor Lazaro Group to advance aquaculture and fish feed production — a move aligned with Egypt’s broader food security and investment strategy.

SCA Chairman Osama Rabie thanked the government for its backing and pointed to signs of recovery. He said 264 vessels had returned to transiting the canal instead of rerouting around the Cape of Good Hope since February, attributing this shift to adaptive marketing strategies and client engagement.

March 2025 brought modest gains: vessel transits rose by 2.4 percent, net tonnage increased by 7.1 percent, and revenue grew by 8.8 percent compared to January.

Despite headwinds including the COVID-19 pandemic and regional conflicts, Rabie highlighted the canal’s resilience. From 2019 to 2024, more than 121,000 ships passed through the waterway, carrying over 7.1 billion tons of cargo and generating nearly $40 billion in revenue.

The Day of Excellence event was attended by several ministers, foreign ambassadors, and maritime officials, underscoring the canal’s global relevance.


Pakistan external account posts record monthly surplus, buoying investor confidence

Pakistan external account posts record monthly surplus, buoying investor confidence
Updated 17 April 2025
Follow

Pakistan external account posts record monthly surplus, buoying investor confidence

Pakistan external account posts record monthly surplus, buoying investor confidence
  • Current account posts a record and one of the highest monthly surpluses in March 2025 with $1.19 billion, up 229% year-on-year
  • Pakistan stocks concluded Thursday’s session on bullish note, with KSE-100 Index advancing by 881 points to close at 116,901 level

KARACHI: The State Bank of Pakistan said on Thursday the country’s current account, which comprises external trade and transfers, had posted a record and one of the highest monthly surpluses in March 2025 with $1.19 billion, up 229% year-on-year.
The Pakistan Stock Exchange also concluded Thursday’s session on a bullish note, with the KSE-100 Index advancing by 881 points, or 0.76%, to close at 116,901 level. 
“Investor sentiment was buoyed by record-high remittances, which contributed to a historic current account surplus in March 2025. The surplus for the first nine months of FY25 reached $1.9 billion,” Topline securities said in a statement. 
The surplus in March 2024 stood at $363 million, the latest central bank data showed. 
On Monday, Central Bank governor Jameel Ahmad had said the current account would show a “substantial” surplus this year through June mainly on the back of a record inflow of remittances which crossed the $4 billion mark in March, with Saudi Arabia once again topping the list of biggest contributors.
“With record monthly surplus in March 2025, cumulative surplus in country’s Current Account for 9MFY25 (Jul-Mar25) now stands at $1.86 billion, which was in a deficit of $1.65 billion in the same period last year,” SBP said. 
In March 2025, Pakistan’s exports recorded at $3.51 billion, growing 8.7% YoY and 6.0% MoM. Imports also rose 8.0% YoY to $5.92 billion in March but fell 1.9% MoM.
“Resultantly, while Trade Deficit (Goods+Services) went up 7% YoY, it narrowed 11.5% MoM in March 2025,” the data showed. 
For 9MFY25 (Jul-Mar25), total exports now stand at $30.9 billion, up 8.1% YoY, while total imports stand at $51.9 billion, up 10.7% YoY, with the cumulative trade deficit at $21.1 billion, up 14.7% YoY. 
“With oil prices down, and remittances continuing to make a record mark, Pakistan’s current account is expected to be in deep surplus by June FY25 and may also continue in FY26, thereby resulting in further scale-up in overall investor confidence,” the central bank said. 
Pakistan received a record-high $4.1 billion in remittances in March 2025, which bodes well for the government’s efforts to revive an economy that it expects will expand three percent this year, SBP governor Ahmad said at an event at the Pakistan Stock Exchange in Karachi on Monday.
The central bank had earlier projected economic growth to range from 2.5% to 3.5%.
“With this level of remittances, we are hoping that for the current fiscal year our current account will stay in surplus,” the governor said. “There will be a substantial surplus and this surplus is the best performance, I will say, on the external account during the last two decades.”
The country broke its own record in February when overseas Pakistanis remitted $3.1 billion.