Cold Stone launches in Dubai.

Cold Stone Creamery has launched its first ice cream outlet in the United Arab Emirates' Dubai Festival City (DFC) development as part of its Middle East expansion plans. The company had announced an agreement back in February with the Apparel Group that called for the opening of more than

40 stores over the next five years in the Gulf Cooperative Council, which includes the United Arab Emirates, Kingdom of Saudi Arabia, State of Kuwait, State of Qatar, Kingdom of Bahrain, Sultanate of Oman, and the Hashemite Kingdom of Jordan. The Apparel group is a leading regional retailer that has previously focused on clothing brands such as Bally, Tommy Hilfiger, Kenneth Cole, Nine West, The Athlete's Foot, Sketchers, Raoul, operating over 350 stores in the Middle East. The Dubai opening is somewhat behind the schedule projected at the time of the agreement, which called for the first store to be opened there by May and another in Saudi Arabia by year's end.

To celebrate its entry into the region Lee Knowlton, President of Kahala*Cold Stone, made a special visit to Dubai to inaugurate the new snore. Paul Sutphin, U.S. Consul General in Dubai, also participated in the ceremonies.

Commenting on the launch Arif Ahmed, General Manager of Cold Stone Creamery Middle East, said, "The Middle East is an enormous market for the food sector, which was reflected by the overwhelming response to the opening of Cold Stone Creamery at DFC. We are positive that the new ice cream outlet is going to be a huge success in the region. The region's growing population has fuelled a boom for sweet snacks and with this in mind we are confident that we will sell above 1000 ice creams a day at our store."

Cold Stone reports that in addition to the 1,500 square fee: store located in the Festival Square, Water Front, it will open another four stores in Dubai by the end of this year. The next one scheduled to open is in Delta, the traditional city center of Dubai.

The company reports it will open 40 across the whole region by the end of 2008, with an investment of Dhs 30 million (about $8 million). Cold Stone is targeting an annual turnover next year in the region of Dhs 32 million and aims to gain 10% of the region's ice cream market by the end of 2008. By 2009, the company plans to have 25% to 30% share.