UAE's Al Futtaim Group acquires 49.95% stake in Saudi Arabia's Cenomi Retail for Dh2.45 billion
ABU DHABI (ALETIHAD)UAE business group — Al Futtaim Group — has acquired a 49.95% stake in Saudi Arabia's leading retail brand partner, Cenomi Retail, in a landmark deal valued at approximately Dh2.45 billion (SAR2.5 billion). The transaction, executed at SAR 44 per share, marks one of the largest foreign direct investments by a UAE private sector entity into Saudi Arabia's retail sector.As part of the agreement, Al Futtaim is also negotiating a shareholder loan of no less than Dh1.27 billion (SAR1.3 billion), which will significantly strengthen Cenomi Retail's balance sheet and support its future growth trajectory. The deal is still subject to regulatory approvals, including from the Saudi General Authority for Competition.The 49.95% stake was sold by Cenomi Retail's founding shareholders — Fawaz Abdulaziz Alhokair, Abdul Majeed Abdulaziz Alhokair, Salman Abdulaziz Alhokair, Saudi FAS Holding Company, and FAS Real Estate Company.The deal not only brings significant capital but also deep operational synergies, as Al-Futtaim operates a broad portfolio of retail, automotive, financial, and real estate businesses across the Middle East, Asia, and Africa. It is also the exclusive regional operator for renowned fashion brands such as Zara, Massimo Dutti, and Bershka.'This is a substantial foreign direct investment from the UAE private sector into a strategic market with strong fundamentals and a clear national vision,' said Omar Al Futtaim, Vice Chairman and CEO of Al-Futtaim Group. 'We are proud to be investing in a company with deep roots in the Saudi retail sector and look forward to unlocking further potential.'Fawaz Abdulaziz Alhokair, speaking on behalf of the selling shareholders, said: 'This is a transformative milestone for Cenomi Retail and our shareholders. By deleveraging our balance sheet and establishing a stronger financial foundation, we are reinforcing long-term partnerships with stakeholders and positioning the company to deliver sustainable growth and enhanced shareholder value.'He added that the entry of Al-Futtaim as a strategic investor 'unlocks significant value for all stakeholders and aligns with Saudi Arabia's Vision 2030 to diversify the economy and attract foreign investment.'Cenomi Retail's CEO Salim Fakhouri welcomed the partnership: 'Having Al-Futtaim as a strategic investor enables us to capitalise on their proven capabilities and further solidify our leadership in the retail sector.'Cenomi Retail is a large franchiser in Saudi Arabia operating food and retail outlets, while Al Futtaim is a private business group with operations ranging from financial services to real estate and retail in the UAE.
Lazard acted as exclusive financial advisor to Cenomi Retail, while Al-Futtaim was advised by J.P. Morgan.
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