Saudi wealth fund PIF to acquire 30% stake in Tamimi Markets

Image credit: Tamimi Markets/ Twitter

Saudi Arabia’s Public Investment Fund (PIF) said it will acquire a 30 per cent stake in Tamimi Markets Company (Tamimi Markets), one of the kingdom’s biggest grocery chains with more than 100 stores and five distribution centres.

PIF said it signed a share subscription agreement to invest in Tamimi Markets, subject to receiving approvals from the relevant authorities and satisfying certain conditions under the agreement.

“PIF is investing in the grocery and food supply chain to ensure a strong Saudi presence in the market, enabling the private sector to capitalise on positive market demand,” said Majed AlAssaf, head of consumer goods and retail, MENA Investments Division at PIF.

The wealth fund said the investment aligns with its strategy to enable the private sector and create Saudi national champions. The deal is aimed at enabling Tamimi Markets to realise its full potential, transforming it from one of the leading national grocery chains to a major regional chain.

“The transactions aim 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,” PIF said in a statement.

Tariq AlTamimi, chairman of Tamimi Holding, said, “This partnership will enable us to accelerate and expand our store network across the region, optimising the significant growth that is expected in this market over the next few years.’’

The deal will further strengthen Saudi presence in a critical sector where Tamimi Markets and other local grocery chains can benefit from positive long-term dynamics.

#PIF announced the signing of a share subscription agreement to invest in @tamimimarkets, one of Saudi Arabia’s leading grocery store chains, by way of a capital increase and subscription for new shares.

Read more: https://t.co/1QnYNp1BcR pic.twitter.com/QOYuUXMkR6

— Public Investment Fund (@PIF_en) June 1, 2023

It will also facilitate access to the growing online grocery market and the establishment of international sourcing centres 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.

The Saudi wealth fund owns stakes in several companies in the consumer goods and retail sector including Noon.com, the leading Middle East online shopping platform, Halal Products Development Company, and Americana Restaurants International.

Tamimi Markets has a strong track record for more than 40 years in Saudi Arabia, offering a wide variety of local and international products, including many brands exclusive to the supermarket chain.

Tamimi joins PIF’s growing portfolio

Meanwhile, PIF has established 77 companies and has generated more than half a million direct and indirect jobs.

With more than $620bn assets under management, PIF unveiled a strategy in January 2021 to more than double its assets to more than SAR4tn by 2025. The Saudi government has expanded the role of PIF, founded in 1971, to finance development projects in the country.

The fund is central to Saudi Arabia’s economic reform initiative as it looks to wean off its heavy reliance on oil revenues under Vision 2030. Last week, launched a new company, Badael, to develop, manufacture and distribute tobacco-free and less harmful products to reduce the prevalence of smoking and localise manufacturing in the country.

PIF owns stakes in tech companies including ride-hailing firm Uber Technologies, soccer teams including English Premier League’s Newcastle United, electric carmakers Lucid and Ceer and is funding a host of new cities in the desert such as the $500bn futuristic NEOM City and the Red Sea Development Company’s mega tourism project.

Read: Saudi-backed electric car maker Lucid plans to raise $3bn