Market Update: Alshaya chairman alleges unfair practices by Chinese companies in Gulf – Full Analysis

The executive chairman of Alshaya Group, the operator of Starbucks and the Cheesecake Factory in the Gulf, said some Chinese companies are taking advantage of the region’s more relaxed market regulations.

“Shein and Temu. They are a problem,” said Mohammed Alshaya, the executive chairman of Alshaya Group during the UAE-Kuwait Economic Forum in Dubai on Monday.

Mr Alshaya also claimed the two companies do not hire locals to conduct business, and are not required to do so, unlike in European and US markets.

“It’s unbelievable that Shein ships a container from China to our doorstep, they don’t hire locals, they don’t have shops, they don’t pay to the municipality,” he said during a panel discussion. He also claimed that the companies do not pay zakat and all their profits go to China.

Shein and Temu were not available for comment.

Chinese companies have rapidly expanded their presence in Gulf markets over the past decade, driven by rising consumer spending, high smartphone penetration and relatively open digital trade frameworks.

Platforms such as Shein and Temu rely on direct-to-consumer shipping models that bypass traditional retail infrastructure, allowing them to offer ultra-low prices and frequent product turnover. This approach has resonated strongly with younger Gulf consumers, particularly in the UAE and Kuwait, where cross-border e-commerce has grown sharply.

Mr Alshaya stressed that he was not saying they should leave the region, but to make sure they benefit the environments they are operating in.

“We’re not saying ban them, but put them on fair market regulations,” said Mr Alshaya, whose company started operating in Kuwait in 1980. His remarks echo broader concerns among Gulf retailers that unchecked growth of cross-border e-commerce could undermine domestic retail ecosystems that have invested heavily in physical stores, logistics networks and local workforces.

Mr Alshaya’s comments come amid a broader global shift towards closer scrutiny of foreign companies operating in major markets, particularly in the US, where trade and regulatory policy has become more assertive.

Under US President Donald Trump, Washington imposed sweeping tariffs on Chinese imports last year, arguing that existing trade arrangements disadvantaged American companies. Many of these measures remain in place, indicating a longer-term change in US trade policy. The tariffs were at times linked to wider negotiations with Beijing, including discussions over technology companies such as TikTok, with Mr Trump suggesting tariffs could be used as leverage in ownership talks.

US authorities have also increasingly tied market access to compliance with domestic regulatory and security requirements. TikTok has been at the centre of this approach, facing repeated demands to restructure or divest its US operations over concerns related to data security and Chinese ownership.