Spinneys to raise Saudi unit stake to 70% in bet on Kingdom's grocery market

Dubai: Spinneys will increase its ownership of its Saudi Arabian business to 70 per cent after agreeing to acquire an additional 20 per cent stake from Abdul Mohsen AbdulAziz Al Hokair Holding Group for SAR18 million, as the Dubai-based retailer expands its presence in one of its fastest-growing markets.

The transaction will raise Spinneys' shareholding in Al-Ma'kulat al-Fakhirah for Food Products (Spinneys KSA) from 50 per cent to 70 per cent. The company has managed the Saudi business since it was established in 2022 and already fully consolidates the subsidiary into its financial statements under IFRS accounting rules.

Completion of the deal remains subject to regulatory approvals, including clearance from the Saudi General Authority for Competition.

Expanding in key market

The acquisition increases Spinneys' economic interest in its Saudi operations and forms part of the retailer's strategy to deepen its presence in high-growth markets.

Chief Executive Officer Sunil Kumar said: “Saudi Arabia is one of our most important growth markets, and increasing our shareholding to 70% reflects both our confidence in the opportunity and the strength of our partnership with Al Hokair. We have led the management of the business since Spinneys KSA was established in 2022, and this step aligns our economic interest with the role we already play.

"The Kingdom’s premium grocery segment continues to develop rapidly, supported by a young, growing and increasingly affluent population. The increased shareholding allows us to invest further in our fresh offering and bring the Spinneys experience to more customers across the country, while continuing to benefit from the local expertise of our partners.”

Building regional footprint

The transaction follows continued expansion across Spinneys' regional network, with the retailer opening nine new stores in the UAE and two in Saudi Arabia over the past year.

Founded in Dubai in 1961, Spinneys now operates 93 stores across the UAE, Oman and Saudi Arabia, including 81 owned outlets and 12 operated stores, among them Waitrose-branded supermarkets.