logo
Al-Futtaim to acquire 49.95% stake in KSA's Cenomi Retail

Al-Futtaim to acquire 49.95% stake in KSA's Cenomi Retail

Al-Futtaim, one of the region's most prominent and diversified private business groups with interests ranging from automobiles, real estate, healthcare, and retail, has signed a share purchase agreement (SPA) with Cenomi Retail, Saudi Arabia's leading retail brand partner.
In a private transaction, Al-Futtaim will acquire a 49.95 per cent stake in Cenomi Retail from members of Alhokair family, Saudi FAS Holding Company, and FAS Real Estate Company.
The shares are priced at SAR 44 (US$11.73) each, valuing the transaction at more than SAR 2.5 billion (US$670 million). The transaction is subject to mandatory regulatory approvals, including clearance from the General Authority for Competition in Saudi Arabia, and other closing conditions.
Al-Futtaim expands presence in Saudi Arabia
Al-Futtaim and Cenomi are currently negotiating a shareholder loan agreement, after which Al-Futtaim will extend a shareholder loan of an amount not less than SAR 1.3 billion (US$350 million) to help strengthen the Saudi company's balance sheet and support its next phase of growth.
The introduction of Al-Futtaim as a long-term strategic shareholder marks a milestone for Cenomi Retail, signaling strong confidence in the company's growth trajectory and market leadership in Saudi Arabia's dynamic retail sector.
Al-Futtaim brings significant capital, as well as retail expertise, operational capabilities, and a strong track record of building successful consumer platforms across the region.
Omar Al Futtaim, Vice Chairman and CEO of Al-Futtaim, commented: 'Our investment in Cenomi Retail reflects our strong confidence in the Kingdom of Saudi Arabia's economy and its long-term Saudi Vision 2030. This investment represents substantial foreign direct investment from the UAE private sector and underscores the robust economic partnership between our countries.
'It strengthens our presence and customer reach in Saudi Arabia, a strategic market with solid fundamentals and a clear national vision. We see significant opportunities to support Cenomi Retail in enhancing operations, accelerating digital transformation, and expanding its brand portfolio. This partnership also paves the way for further collaborations in the dynamic Saudi market.'
With presence across the Middle East, Asia, and Africa, Al-Futtaim brings a proven track record in retail, including exclusive operations of leading Inditex brands like Zara, Massimo Dutti, and Bershka across key markets such as Malaysia, Thailand, and Singapore, as well as other retail operations across the Kingdom of Saudi Arabia, the United Arab Emirates and Egypt.
In a statement, the company said it 'believes this strategic collaboration will accelerate its ability to seize new opportunities and deliver long-term value to its shareholders'.
Fawaz Abdulaziz Alhokair, one of the selling shareholders of Cenomi Retail, added: 'This transaction marks a transformative milestone for Cenomi Retail. 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.
'The entry of Al-Futtaim as a strategic investor in the company will provide it with the investor's deep sector expertise, operational scale, and a shared long-term vision. Al-Futtaim's global retail footprint, financial strength, and presence in the Kingdom make them an ideal strategic investor.
'This strategic investment unlocks significant value for all stakeholders and aligns with Saudi Arabia's Vision 2030 to diversify the economy and attract foreign investment.'
Upon completion of the transaction, Al-Futtaim will work closely with Cenomi Retail's management and board to drive operational efficiencies and enhance customer offerings.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

The price of influence: Why bartering needs a rebrand in the GCC
The price of influence: Why bartering needs a rebrand in the GCC

Campaign ME

timean hour ago

  • Campaign ME

The price of influence: Why bartering needs a rebrand in the GCC

I sat across from two female powerhouses in the Gulf Cooperation Council's (GCC) influencer marketing field, and one thing was clear – brands need to stop thinking of bartering as a budget hack and start treating influencers like true partners. Shifting influence With Saudi Arabia's average age at just 29 and more than 60 per cent of the Arab region's population under 30, the Gulf is a vibrant playground for youth-driven, creator-led content. GCC consumers crave content that resonates with their values, their families and their aspirations, not globalised campaigns that miss the mark. Currently, we're witnessing a seismic shift in marketing budgets – 76.5 per cent of CMOs are actively reallocating funds from traditional and other digital channels towards influencer marketing. This isn't a momentary fling; it's a transformation. #HardFacts Bartering in influencer marketing In a region where social media doesn't just thrive – it dominates – barter arrangements remain surprisingly common. According to a 2024 report from Influencer Marketing Hub, 28.2 per cent of brands in the Gulf still engage in barter-based partnerships. So, here's the question – if an influencer typically charges AED 2,000 for a post, why are we still offering a goodie bag in return? Does that make sense? For many brands, it still does. In the UAE, 59 per cent of brands allocate up to AED 250,000 annually for influencer marketing, yet over a third still prefer barter-based deals. As smarter ROI tools and audience analytics become more accessible, when will this paradigm shift? Influencer marketing is no longer a novelty; it's an essential brand touchpoint. The way we structure partnerships, especially barter deals, urgently needs to evolve. Last week, I sat down with influencer experts Nourhan Khalifa and Reem Haddad – part of MSL's PR & Influencer practice, led by Mary Smiddy – who know this landscape intimately. Our conversation kept returning to one word: value. Bartering isn't dead – but it needs a rethink Let's be clear—there's a place for bartering in influencer marketing. MSL's PR and Influencer practice recommends focusing on several key points: Value Alignment: The product or experience must accurately reflect the influencer's rate and relevance. Offering a product worth AED 150 to an influencer whose content typically generates AED 5,000 in engagement undermines the value of the partnership. Clear Deliverables: Define content formats, posting timelines and tagging expectations upfront. No grey areas—no assumptions. High-Quality Offering: If you're not offering payment, present something exceptional. Think exclusive experiences or limited-edition releases—not throwaway samples. Mutual Exposure: Ensure it's worth their while. Offer brand visibility, reposting support, or opportunities for future paid collaborations. Limited Availability: Position the opportunity as curated and exclusive. The barter should feel selective and thoughtful, not merely transactional. No Additional Costs: Influencers shouldn't have to cover expenses for your brand's exposure. Delivery, travel, props—it's all on you. Performance Follow-Up: Treat barters like a professional collaboration. Track performance, provide insights and nurture the relationship. The missed opportunity: Nano-influencers Mary Smiddy, Business Lead, MSL Consumer PR and Influencer practice, suggests that the best barter partnerships often happen with micro and nano influencers, especially when they're just starting out. At this stage, they genuinely appreciate meaningful collaborations with brands they trust, making it a win-win for everyone. The MENA region is home to over 13.2 million nano-influencers – but their potential remains largely untapped. Globally, nano and micro-influencers are prized for their authenticity and unparalleled engagement rates. Yet in the Gulf, the tendency to favour mid-tier and mega-influencers persists despite evidence showing that smaller creators cultivate deeper and more trusted connections. Necessary legalese An important note when considering barter deals is that many GCC markets now require influencers to obtain commercial licences for all collaborations, including barter arrangements. These licences come with fees, paperwork and renewal cycles, which ultimately push influencer rates higher. Brands that overlook this reality risk more than bad PR—they risk legal liability. First-party influence in a cookie-free world With the impending death of third-party cookies, brands are scrambling for alternatives. Influencers are the solution hiding in plain sight. These creators offer first-party psychographic data – insights into what people feel, trust and desire. It's a level of intimacy no algorithm can replicate. But you don't unlock that value with a smoothie bowl and a smile. You access it with respect, reciprocity and a long-term vision. The bottom line The barter model isn't broken. It's dangerously misunderstood. In the right context, with the right influencers and a strategic approach, bartering can be a gateway – not a shortcut. It's time for brands in the GCC to stop seeing bartering as a budget-saving tool and start treating it as a relationship-building strategy. Influencer marketing doesn't begin with transactions; it begins with trust. And trust—isn't that worth far more than a freebie? By Aimée Ramos, Senior Executive – Public Relations, MSL Group Middle East

Saudi investment delegation signs $6.4bn in deals during Syria visit
Saudi investment delegation signs $6.4bn in deals during Syria visit

Gulf Business

time3 hours ago

  • Gulf Business

Saudi investment delegation signs $6.4bn in deals during Syria visit

Image: Saudi Press Agency A high-level Saudi investment delegation, led by Minister of Investment Eng. Khalid Al-Falih, has concluded a multi-day visit to Syria aimed at strengthening economic ties and driving long-term cooperation across key sectors. The visit, which included a series of meetings with Syrian officials, culminated in the Syrian-Saudi Investment Forum, held under the patronage of Syrian President Ahmad al-Sharaa. Several ministers and senior officials from both nations participated in the event. During the forum, 47 Saudi-Syrian investment agreements were signed, with a total value of nearly $6.4bn (SAR24bn). The deals span a wide array of sectors, including real estate, infrastructure, finance, communications and IT, energy, industry, tourism, trade, investment, and healthcare. On the sidelines of the forum, a ministerial session brought together Eng. Al-Falih, Syrian Minister of Economy and Industry Dr. Mohammad Nidal Al-Shaar, Minister of Tourism Mazen Al-Salhani, and Saudi-Syrian Business Council and ACWA Power chairman Mohammad Abunayyan. Discussions focused on revitalising economic ties and Saudi Arabia's support for Syria's post-conflict reconstruction. The session also underscored the commitment of Saudi Arabia, under the leadership of King Salman bin Abdulaziz Al Saud and Crown Prince Mohammed bin Salman, to enabling Syria's recovery through investments and partnerships. Projects Several notable projects were announced during the forum. Al-Badia Cement Company unveiled plans to invest over $200mto expand its grinding, packaging, and power generation capacities, aiming to boost annual output to more than 5 million tons. The company also expressed interest in partnering with the Syrian government to enhance state-owned cement operations and ensure market stability. Minister Al-Falih also met with various Syrian ministers to explore additional avenues of cooperation supporting comprehensive development. Read: As part of the visit, the delegation conducted field visits to existing and planned Saudi projects in Syria. Al-Falih laid the foundation stone for the Al-Fayhaa Cement Factory, a project worth approximately $27m (SAR100m), which will have an annual capacity of 150,000 tonnes. The project is expected to enhance local content and drive knowledge transfer. Another major development is the Al-Jawhara Commercial Tower in Damascus, a Saudi-Syrian initiative with a built-up area of 25,000 square meters and an estimated investment of over $100m (SAR375m). The mixed-use tower will feature office spaces, retail outlets, and hotel units, further contributing to Syria's urban and economic redevelopment.

UAE has hosted more than 17,600 Afghan evacuees since 2021
UAE has hosted more than 17,600 Afghan evacuees since 2021

The National

time17 hours ago

  • The National

UAE has hosted more than 17,600 Afghan evacuees since 2021

Almost four years since the Taliban took power following the US withdrawal from Afghanistan, UAE authorities have provided details of how many Afghans it has hosted. The UAE has spent almost Dh1.35 billion ($367.6 million) hosting Afghan refugees before relocating them to other countries since 2021, the Ministry of Foreign Affairs said in a statement. There have been 17,619 Afghans hosted in Emirates Humanitarian City in Abu Dhabi since there were widespread evacuations after the Taliban seized power in Afghanistan, two decades after they were toppled by the US and Nato. The assistance covered all the needs of Afghan citizens − including health care, logistical and diplomatic services, communications, shelter and food − ensuring comfort, a dignified life and well-being, said a statement from the ministry released on Thursday. EHC also provided services related to departure procedures, with 17 offices opened for the embassies of the countries to where Afghans were seeking relocation. School transport was also provided, along with on-site education and training courses. Almost 2,600 Afghans benefitted from training and professional development workshops, the ministry added. 'The UAE has spared no effort in assisting the Afghan people, being at the forefront of countries that have initiated support for Afghanistan,' said the ministry. 'This reflects its humanitarian mission, which is based on the values of giving, charitable work, spreading peace and consolidating coexistence, tolerance, and the principles of human fraternity. 'It also promotes solidarity with peoples during the most difficult circumstances and crises facing countries. 'The focus on caring for people and preserving their dignity has been a constant approach in the UAE's journey since its founding, regardless of ethnic, religious, or geographical backgrounds and in line with its noble humanitarian principles. It has become a global symbol of humanitarian giving and sustainable good.' A US news outlet reported earlier this month that the UAE was preparing to send a small number of evacuees back to Afghanistan in July.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store