Dubai's Al-Futtaim strikes SR2.5 billion deal with Saudi Arabia's Cenomi Retail

Dubai: The Dubai headquartered Al-Futtaim group has just confirmed a major investment in Saudi Arabia.

The founding partners in Cenomi Retail, the Saudi company, will sell a 49.95% stake to Al-Futtaim.

The selling shareholders in Cenomi retail are Fawaz Abdulaziz Alhokair, Abdul Majeed Abdulaziz Alhokair, Salman Abdulaziz Alhokair, Saudi FAS Holding Company, and FAS Real Estate Company.

Al-Futtaim remains one of the most diversified family businesses in the UAE, with long-established alliances with the likes of Toyota and Honda, as well as with Ikea. It also is a developer of shopping and mixed-use destinations such as Dubai Festival City.

The shares are priced at SR44 each, valuing the transaction at more than SR2.5 billion.

Al-Futtaim and Cenomi Retail are currently negotiating a shareholder loan agreement 'pursuant to which Al-Futtaim will extend a shareholder loan of an amount not less than SR1.3 billion, upon completion of the transaction'. This is also a 'completion condition' for the private transaction between the selling shareholders and Al-Futtaim.

This will 'help strengthen' Cenomi Retail’s balance-sheet and support its next phase of growth.

"This landmark deal represents a major milestone for Cenomi Retail, introducing Al-Futtaim as a long-term strategic shareholder and signaling strong confidence in the company’s growth trajectory and market leadership in Saudi Arabia’s dynamic retail sector," said a statement.

"Al-Futtaim brings not only significant capital but also deep retail expertise, operational capabilities, and a strong track record of building successful consumer platforms across the region."

According to a top Al-Futtaim official, the Cenomi retail deal sets up future investment opportunities in Saudi Arabia.

“This investment represents substantial FDI from the UAE private sector and underscores the robust economic partnership between our countries," said Omar Al Futtaim, Vice-Chairman and CEO of Al-Futtaim.

"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.”