Riyadh, Saudi Arabia — Saudi Arabia’s sovereign wealth fund, Public Investment Fund, will acquire a 30 percent stake in local supermarket chain Tamimi Market Company, following the signing of a share subscription agreement between the two companies.
Tamimi Market Company has a track record over a period of more than 40 years in Saudi Arabia, with over 100 stores and five distribution centers, offering a wide variety of local and international products, including many brands exclusive to Tamimi.
PIF owns several strategic investments in the consumer goods and retail sector, such as Noon.com, an online Middle East shopping platform, Halal Products Development Company, and Americana Restaurants International.
The investment in Tamimi Markets is in line with PIF’s strategy to develop key sectors in Saudi Arabia, the company said. Since 2017, PIF has established 77 companies and has generated more than half a million direct and indirect jobs.
The statement said that this investment aims to enable Tamimi Markets to realize its full potential, transforming it from one of the leading national grocery chains to a major regional chain. It aims to support the Company’s ambitious plans through expansion of its operations and commercial opportunities, including acceleration of regional growth and a potential initial public offering (IPO).
It will also aim to facilitate access to the growing online grocery market and the establishment of international sourcing centers to improve profitability and product offerings, benefitting the private sector by strengthening the consumer goods and retail ecosystem and leading to a greater choice of products for consumers.
Majed AlAssaf, Head of Consumer Goods and Retail, MENA Investments Division at PIF, said: “PIF is investing in the grocery and food supply chain to ensure a strong Saudi presence in the market, enabling the private sector to capitalize on positive market demand.”
Tariq AlTamimi, Chairman of Tamimi Holding, said, “PIF’s partnership is a significant vote of confidence in Tamimi Markets and a step forward for the company, as we look to implement our ambitious growth plans.”