Al-Futtaim Takes Nearly Half of Cenomi in SAR2.52bn Deal

Al-Futtaim has finalised the acquisition of a 49.95% stake in Cenomi Retail for SAR 2.52 billion, after agreement to purchase shares at SAR 44 per share from major founding shareholders. This marks a significant foreign investment in Saudi Arabia’s retail sector.

Under the terms, Al-Futtaim also authorised a SAR 1.35 billion shareholder loan facility to bolster Cenomi’s balance sheet and support planned growth. The loan contains an option for Al-Futtaim to convert some or all of the loan into additional equity, subject to approvals and prevailing market conditions.

Regulatory filings show that all conditions tied to the project, including no-objection resolutions and required agency approvals, have been satisfied. Al-Futtaim now holds almost half the equity in the Saudi retailer, while the remaining 50.05% remains with prior shareholders.

Cenomi’s board regards the transaction as central to restoring financial strength. The cash and loan facility are expected to improve the capital structure, enhance liquidity, and enable expansion of both retail operations and its digital footprint. Executives emphasise employee development, improvements in customer engagement, and operational efficiency as priorities under the new ownership structure.

For Al-Futtaim, this investment is a strategic move to deepen presence in Saudi Arabia’s fast-growing consumer market. Its experience with global retail brands, omnichannel commerce, and supply-chain logistics is likely to be leveraged to scale Cenomi’s operations and expand its brand offerings across the Kingdom. The deal aligns with Saudi Arabia’s Vision 2030 agenda, particularly goals related to economic diversification, private sector development, and boosting foreign direct investment.

Saudi Arabia’s retail industry has seen rising consumer spending, urbanisation, and a push towards integrating digital platforms with physical retail. Analysts suggest that success of this partnership may depend on Cenomi’s ability to stem past financial losses, stabilise inventory, control costs, and deliver consistent margins amid competition.