UAE’s Al-Futtaim to Take Strategic 49.95% Stake in Saudi Retail Giant Cenomi
RIYADH — Emirati conglomerate Al-Futtaim has agreed to acquire a 49.95 percent stake in Saudi Arabian retail franchiser Cenomi Retail, in a transaction valued at more than 2.5 billion Saudi riyals ($667 million), marking one of the largest cross-border retail investments in the Kingdom in recent years.
In a statement released on Sunday, Cenomi Retail said its founding shareholders have signed a share purchase agreement with Al-Futtaim, with shares priced at 44 riyals each. The transaction is subject to customary regulatory approvals and completion conditions.
As part of the deal, the two companies are also negotiating a shareholder loan of at least 1.3 billion riyals, aimed at strengthening Cenomi Retail’s balance sheet and supporting its future growth plans. The loan is expected to enhance liquidity and provide additional financial flexibility as the company navigates evolving consumer and retail market dynamics.
Cenomi Retail is one of Saudi Arabia’s largest franchise operators, managing a wide portfolio of international food and fashion brands across shopping malls and high-street locations in the Kingdom. The company plays a central role in Saudi Arabia’s consumer economy, which continues to expand alongside population growth and rising discretionary spending.
Al-Futtaim, one of the Middle East’s most prominent privately held business groups, operates across sectors including retail, real estate, financial services, automotive, and healthcare, with a footprint spanning the Middle East, Asia, and Europe.
Commenting on the transaction, Omar Al-Futtaim, Vice Chairman and CEO of Al-Futtaim, said the investment highlights the strength of economic ties between the UAE and Saudi Arabia.
“This investment represents substantial foreign direct investment from the UAE private sector and underscores the robust economic partnership between our countries,” he said.
The deal reflects growing regional consolidation in the retail sector, as major Gulf-based groups seek scale, operational synergies, and long-term exposure to Saudi Arabia’s consumer market under Saudi Vision 2030. Increased foreign investment in retail also aligns with the Kingdom’s broader push to attract capital, modernize commercial infrastructure, and enhance consumer experiences.
If completed, the acquisition would position Al-Futtaim as a key strategic shareholder in Cenomi Retail, potentially paving the way for deeper operational collaboration and accelerated expansion across the Saudi retail landscape.
