Emirati conglomerate Al-Futtaim Group has acquired a 49.95 per cent stake in Saudi Arabia’s Cenomi Retail for more than SAR2.5 billion (US$664.5 million).

Al-Futtaim bought the stake through a share purchase agreement with Cenomi’s founding shareholders, namely Fawaz Abdulaziz Alhokair, Abdul Majeed Abdulaziz Alhokair, Salman Abdulaziz Alhokair, Saudi FAS Holding Company, and FAS Real Estate Company.

As part of the deal, the two companies are negotiating an agreement under which Al-Futtaim will extend a shareholder loan of not less than SAR1.3 billion to help strengthen Cenomi’s balance sheet and support its next phase of growth.

Cenomi said the “landmark deal” marks a key step in its transformation journey, allowing the company to leverage Al-Futtaim’s retail expertise, operational capabilities, and a strong track record of building successful consumer platforms across the region.

“Having Al-Futtaim as a strategic investor enables us to capitalise on their proven capabilities and further solidify our leadership in the retail sector and position us for sustainable growth and compelling shareholder returns,” Salim Fakhouri, CEO at Cenomi Retail, remarked.

“Our investment in Cenomi Retail reflects our strong confidence in the Kingdom of Saudi Arabia’s economy and its long-term Saudi Vision 2030,” added Omar Al Futtaim, vice chairman and CEO of Al-Futtaim. 

Upon completion of the transaction, Al-Futtaim will work closely with Cenomi’s management and board to drive operational efficiencies, enhance customer offerings, and unlock significant value for shareholders. 

The transaction is subject to customary regulatory approvals.

Founded in 1990, Cenomi Retail is a leading franchise retailer in Saudi Arabia and the only listed business of its type in the Middle East. It currently represents 47 brands, spanning womenswear, kids and baby, department stores, shoes, accessories and cosmetics, in addition to operating a series of restaurants and coffee shops, including Subway stores. 

The company opened its first store in 1991 and has grown to 808 locations across 165 shopping malls in eight countries.