Saudi retail: Al Futtaim acquires 49.95% stake in Cenomi for $672m

Cenomi Retail, Saudi Arabia’s leading retail brand partner, has completed a landmark share purchase transaction with Al Futtaim, one of the region’s largest diversified business groups.

Under the deal, Al Futtaim acquired a 49.95 per cent stake in Cenomi Retail for SR2.52bn ($672m) at SR44 per share.

The transaction is one of the largest foreign strategic investments in a Saudi-listed retail company, underscoring the Kingdom’s role as a premier global investment destination and a hub for consumer-driven growth.

Al Futtaim eyes Saudi retail growth

Aligned with the goals of Saudi Vision 2030, the partnership supports national priorities, including economic diversification, private sector development, and retail sector transformation.

Al Futtaim’s entry as a major shareholder marks a new chapter in Cenomi Retail’s journey, bringing global expertise, digital capabilities, and operational excellence. The partnership will focus on:

• Innovation and efficiency in operations
• Enhanced customer engagement and omnichannel retail
• Expanding distribution reach across Saudi Arabia

The transaction will also strengthen Cenomi Retail’s capital structure, improve competitiveness, and create new career development opportunities for employees.

As part of the agreement, Al Futtaim will extend a SR1.35bn ($360m) shareholder loan facility to Cenomi Retail.

The facility, which includes an equity conversion option subject to approvals, is intended to boost the company’s balance sheet, enhance financial flexibility, and support future expansion.

Salim Fakhouri, CEO of Cenomi Retail, said: “The entry of Al-Futtaim is a milestone in Cenomi Retail’s journey. This strategic partnership underscores the strength of our business model and positions the Company to deliver enhanced value, stronger competitiveness, and sustainable growth for all shareholders.”

Wassim Arabi, President of Retail at Al-Futtaim, said: “The Kingdom of Saudi Arabia is one of the region’s most dynamic consumer markets, and this strategic partnership marks a pivotal step in Al Futtaim’s long-term commitment to the Kingdom. By combining Cenomi Retail’s strong local presence with Al Futtaim’s global retail expertise, we aim to unlock new growth opportunities, elevate store experiences, and accelerate digital transformation and omnichannel capabilities.”

The strategic partnership unites the strengths of two leading regional players to unlock growth, deliver long-term value to shareholders, and help shape the future of Saudi retail.

Both companies emphasised their commitment to advancing the ambitions of Vision 2030, through innovation, talent development, and world-class customer experiences.