Saudi Arabia’s Public Investment Fund (PIF) has signed a share subscription agreement in order to invest in Kingdom’s leading grocery store chain, Tamimi Markets Company.
The signing of this agreement aligns with PIF’s strategy to enable the private sector and create Saudi national champions.
PIF will become a shareholder with a 30 percent stake in the entire share capital of Tamimi Markets, after obtaining approvals from the relevant authorities and satisfying certain conditions under the agreement.
According to the statement, 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 the expansion of its operations and commercial opportunities, including acceleration of regional growth and a potential initial public offering (IPO).
Mr. Majed AlAssaf, Head of Consumer Goods and Retail, MENA Investments Division at PIF, said that, “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. This partnership is expected to contribute to the expansion of Tamimi Markets’ operations and product offering, accelerating its regional growth plans and benefiting consumers through greater choice. Our investment aligns with PIF’s strategy to create Saudi national champions in key sectors that contribute to the diversification of the economy.”
Furthermore, the investment intends to further strengthen Saudi presence in a critical sector where Tamimi Markets and other local grocery chains can benefit from positive long-term dynamics.
“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,” as per the statement.
“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. This partnership will enable us to accelerate and expand our store network across the region, optimizing the significant growth that is expected in this market over the next few years.,’ noted Mr. Tariq AlTamimi, Chairman of Tamimi Holding.
