Gap Inc. has struck a strategic partnership with Chalhoub Group to bring the Gap, Banana Republic and Athleta brands to shoppers across the Gulf Cooperation Council, the companies announced, marking a fresh push by the American retailer into one of the world’s fastest-growing consumer markets.
The tie-up pairs Gap Inc.’s global brand direction with Chalhoub Group’s regional retail infrastructure, digital capabilities and omnichannel expertise, with the two sides describing the alliance as the start of a long-term commitment to the Middle East. The companies said the partnership would create new ways to connect customers with the three brands through storytelling, experiences and collaborations that preserve each label’s distinct identity, rather than treating the rollout as a single uniform expansion.
Online launches for Gap, Banana Republic and Athleta are planned across the United Arab Emirates, Saudi Arabia and Kuwait later this year, with the companies phasing in e-commerce first before opening physical stores across the region in 2027. The staged approach mirrors a broader pattern among Western apparel groups entering the GCC, where digital retail has expanded rapidly alongside rising disposable incomes and a young, brand-conscious consumer base.
David Vercruysse, president of managed companies at Chalhoub Group, said the deal reflected the growing cultural relevance of Gap Inc.’s brand portfolio globally, pointing to the group’s collaborations tied to pop culture and a renewed creative direction that has sharpened the identity of its labels. He said Chalhoub Group’s understanding of regional consumer dynamics, combined with its digital and omnichannel capabilities, positioned the partnership to expand the cultural presence of Gap, Banana Republic and Athleta across the GCC, with additional joint projects already planned for the second half of the year.
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Eric Chan, chief business and strategy officer at Gap Inc., said the partnership would let the company extend its mission of bringing modern American style to customers in one of the world’s most dynamic and fast-growing retail regions. He said the rollout would be digitally led and locally relevant while preserving the distinct identity of each brand.
Chalhoub Group, which has operated in the Middle East for more than seven decades, runs a portfolio of more than ten owned brands alongside distribution and marketing operations for over 400 international names spanning luxury fashion, beauty, jewellery, watches, eyewear and lifestyle categories. The group operates more than 950 stores along with online platforms and mobile apps across the region, and employs more than 16,000 people across eight countries in the Middle East and Latin America. Its innovation arm, The Greenhouse, serves as an incubator and accelerator for regional and global startups. The company has pledged to reach net-zero emissions by 2040 and is a signatory to the United Nations Global Compact and the Women’s Empowerment Principles.
Gap Inc. is the largest specialty apparel company in the United States, operating the Old Navy, Gap, Banana Republic and Athleta brands across company-run and franchise stores as well as e-commerce channels worldwide. The company has been expanding its international franchise and partnership footprint in recent years as it looks to diversify revenue beyond its core North American market.
The GCC has become an increasingly competitive battleground for global apparel and lifestyle brands, with retailers drawn to the region’s high per-capita spending power, expanding shopping mall infrastructure and growing appetite for both mainstream and luxury fashion. Partnerships with established regional retail groups such as Chalhoub have become a common entry strategy for Western brands seeking to navigate local market dynamics without directly operating stores themselves.
Neither company disclosed financial terms of the partnership.
The move comes as Gap Inc. continues to lean on franchise and licensing structures to grow its international presence without the capital intensity of directly operated stores, a strategy that has helped the group extend its reach into markets across Asia, Latin America and now the Gulf. For Chalhoub Group, the addition of Gap, Banana Republic and Athleta broadens a portfolio historically weighted toward luxury fashion and beauty, signalling an appetite to capture more mainstream and athletic-lifestyle spending as GCC consumers diversify their shopping habits across price tiers.