Emirati business group Al-Futtaim is set to acquire a 49.95% stake in Saudi Arabia’s Cenomi Retail, in a transaction valued at over SAR 2.5 billion (USD 667 million), according to a statement issued by Cenomi Retail.
The statement noted that Cenomi Retail’s founding shareholders had entered into a share purchase agreement with Al-Futtaim, with each share priced at SAR 44.
As part of the agreement’s closing conditions, the parties are discussing a shareholder loan of no less than SAR 1.3 billion to strengthen Cenomi Retail’s financial position.
Cenomi Retail is a major franchise operator in Saudi Arabia with a portfolio spanning food and retail brands, while Al-Futtaim, based in the UAE, is a diversified private conglomerate involved in sectors such as real estate, retail, and financial services.
“This transaction marks a significant injection of foreign direct investment from the UAE’s private sector and highlights the strong economic ties between the two nations,” said Omar Al-Futtaim, Vice Chairman and CEO of the Al-Futtaim Group, in the statement.
Saudi Arabia is actively working to increase foreign direct investment as part of its Vision 2030 strategy, aimed at reducing reliance on oil revenues and fostering private sector growth. (USD 1 = SAR 3.7509).
