Dubai's Al Futtaim buys 49.95% stake in Saudi Arabia's Cenomi Retail for over Dh2.44 billion
The Dubai-based conglomerate acquired the stake from Fawaz Abdulaziz Alhokair, Abdul Majeed Abdulaziz Alhokair, Salman Abdulaziz Alhokair, Saudi FAS Holding Company, and FAS Real Estate Company. The shares are priced at SAR 44 (Dh43) each.
Under the agreement, Al Futtaim and Cenomi Retail are currently negotiating a shareholder loan agreement. Under this, Al Futtaim will extend a shareholder loan of an amount not less than SAR 1.3 billion, upon completion of the transaction, to help strengthen Cenomi Retail's balance sheet and support its next phase of growth.
Al Futtaim group's expansion into Saudi Arabia reflects the strong growth of the retail market in the GCC's largest economy.
According to a recent report by Logic Consulting, the GCC retail industry is on track to reach $390 billion (Dh1.43 trillion) by 2028, led by digital transformation, evolving consumer preferences, and strategic government initiatives. Saudi Arabia and the UAE dominate, accounting for over 75 per cent of regional retail sales, a share set to expand further.
Al Futtaim, one of the most diversified private groups in the UAE, is operating across 18 countries in the Middle East, North Africa and Asia in key sectors including automotive, financial services, real estate, retail, and health. It has a portfolio of over 200 brands, employing nearly 33,000 people.
Cenomi Retail is the only listed business of its type in the Middle East. Its first store opened in 1991; it now trades in 808 stores across 165 shopping malls in 8 countries, with a retail platform covering a total gross leasable area (GLA) of about 332,000 square meters.
All of this is managed by a workforce numbering more than 7,000. Cenomi Retail currently represents 47 brands, spanning womenswear, kids' and baby, department stores, shoes and accessories, cosmetics, in addition to operating a series of restaurants and coffee shops.
'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,' said Omar Al Futtaim, vice chairman and CEO of Al Futtaim.
'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,' he said.
Salim Fakhouri, CEO at Cenomi Retail, said this deal will firmly place Cenomi Retail 'on the right strategic path towards our next phase of growth, focused on scalable, high-performing global brands that drive long-term value to our shareholders.'
The transaction is subject to customary regulatory approvals.
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