RIYADH, SAUDI ARABIA In a major cross-border retail deal, UAE-based conglomerate Al-Futtaim Group has acquired a 49.95% stake in Cenomi Retail, one of Saudi Arabia’s largest lifestyle and fashion retail operators, in a transaction valued at over SR2.5 billion (USD $667 million).
The deal marks a significant step in Al-Futtaim’s regional expansion strategy and is set to reshape the retail landscape in the Gulf Cooperation Council (GCC) as Saudi Arabia ramps up its Vision 2030 economic diversification agenda.
Strategic Alliance with Big Implications
Announced jointly by both companies on Monday, the deal is being framed as a strategic partnership aimed at accelerating Cenomi Retail’s digital transformation and strengthening its omnichannel capabilities across the Kingdom.
“This is more than a financial investment it’s a long-term strategic alliance,” said Omar Al Futtaim, Vice Chairman of the Al-Futtaim Group. “We believe in the future of Saudi retail, and Cenomi is a natural partner for us given its scale, portfolio, and alignment with Vision 2030.”
Cenomi Retail, formerly known as Fawaz Alhokair Group, operates over 1,500 stores across more than 100 shopping destinations in Saudi Arabia. The company represents over 80 international brands including Zara, Banana Republic, and Aldo.
Investment to Fuel Growth and Innovation
According to a joint statement, the SR2.5 billion cash injection will be used to pay down debt, invest in e-commerce infrastructure, and modernize existing stores, signaling a bold shift toward a hybrid retail model.
“This partnership will unlock value for customers and shareholders alike,” said Mohamed Mourad, CEO of Cenomi Retail. “Al-Futtaim brings operational excellence, digital expertise, and financial firepower to the table.”
Regional Retail Shake-Up
The acquisition comes amid rising consumer demand and fierce competition in the Gulf’s retail sector, with Saudi Arabia at its center. Analysts view the deal as part of a wider trend of regional consolidation, as traditional retailers look to tech-savvy partners to remain competitive.
“This is one of the largest retail deals in the GCC in recent years,” said Nadine Habib, a retail analyst at Gulf Insights. “It signals confidence in the Saudi market and the growing convergence between Emirati and Saudi business interests.”
What’s Next?
The transaction, which is subject to regulatory approvals, is expected to close by Q4 2025. Al-Futtaim will not assume majority control but will have significant influence over strategic decisions.
Market reaction was swift: Cenomi Retail shares rose 4.3% on the Tadawul stock exchange following the announcement.
As Saudi Arabia continues to liberalize its economy and attract foreign investment, this landmark deal could pave the way for more cross-border partnerships between Emirati investors and Saudi enterprises.
