Saudi Arabia’s Public Investment Fund (PIF), the Kingdom’s sovereign wealth fund, has announced its strategic investment in Tamimi Markets Co., a prominent grocery chain in Saudi Arabia. The move is part of PIF’s ongoing efforts to expand its portfolio and strengthen the private sector.
Under the agreement, Public Investment Fund will acquire a 30% stake in Tamimi Markets through a capital increase and subscription of new shares. The investment aims to support Tamimi Markets’ transformation from a national grocery chain to a significant regional player in the industry.
Public Investment Fund has a track record of strategic investments in the consumer goods and retail sector, including Noon.com, Halal Products Development Co., and Americana Restaurants International. By investing in the grocery and food supply chain, PIF aims to foster a strong presence in the market and enable the private sector to capitalize on growing market demand.
Majed Al-Assaf, Head of Consumer Goods and Retail at Public Investment Fund’s Middle East and North Africa Investments Division, highlighted the importance of the investment, stating, “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.”
Tariq Al-Tamimi, Chairman of Tamimi Holding, expressed optimism about the partnership with PIF and its potential to support the company’s expansion across the region in the coming years. The investment from PIF will provide Tamimi Markets with additional resources and opportunities to enhance its regional presence.
The PIF’s recent investment in Tamimi Markets reflects its ongoing commitment to diversifying the Saudi economy and creating national champions in various sectors. The fund has consistently ranked among the top sovereign wealth funds worldwide, currently holding the sixth position with assets valued at $607.42 billion, as reported by the Sovereign Wealth Fund Institute in January.
With investments spanning 10 different sectors and ownership in 71 companies, the PIF has played a significant role in job creation, generating over 500,000 direct and indirect employment opportunities. The fund’s strategic investments aim to drive economic growth, enhance sectoral competitiveness, and contribute to the Kingdom’s long-term development goals.
The partnership between PIF and Tamimi Markets represents a step forward in boosting the regional grocery and retail sector. As Tamimi Markets expands its operations and product offerings, consumers can expect a wider range of choices and improved shopping experiences. With PIF’s support, Tamimi Markets is well-positioned to realize its growth ambitions and contribute to the continued diversification and development of the Saudi Arabian economy.
By fostering partnerships and investments in key sectors, PIF aims to diversify the Saudi economy, reduce its dependence on oil revenues, and promote the growth of the private sector. The fund’s strategic investments not only provide financial support but also bring expertise, technology, and best practices to the companies it partners with, thereby enhancing their competitiveness on both regional and international stages.
The investment in Tamimi Markets signifies PIF’s commitment to advancing the grocery and retail sector in Saudi Arabia. As Tamimi Markets expands its operations and product offerings, consumers can anticipate a broader range of choices and improved shopping experiences. This partnership underscores the Kingdom’s determination to develop a thriving private sector and create opportunities for sustainable economic growth.
With PIF’s backing, Tamimi Markets is well-positioned to navigate the challenges and capitalize on the opportunities in the dynamic retail landscape. As the grocery chain continues to grow and evolve, it will contribute to the Kingdom’s ongoing economic diversification efforts and reinforce Saudi Arabia’s position as a regional hub for commerce and investment.
Overall, PIF’s investment in Tamimi Markets represents a significant step forward in strengthening the grocery and retail sector in Saudi Arabia. This partnership exemplifies the collaborative approach taken by PIF to drive economic growth, stimulate job creation, and support the transformation of key industries, ultimately shaping a prosperous future for the Kingdom.
