In a significant move highlighting the deepening economic ties between the UAE and Saudi Arabia, Emirati conglomerate Al-Futtaim has agreed to acquire nearly a 50% stake in Saudi franchising giant Cenomi Retail. The deal, valued at over $667 million, represents a major step in regional investment collaboration and aligns with Saudi Arabia’s broader economic diversification goals under Vision 2030.

Cenomi Retail, one of Saudi Arabia’s largest franchise operators, announced on Sunday that its founding shareholders have signed a share purchase agreement with Al Futtaim. Under the agreement, Al Futtaim will acquire a 49.95% stake in the company, with shares priced at $11.73 each.

In addition to the equity transaction, the two parties are negotiating a shareholder loan of at least $346.7 million. This loan, a condition for closing the deal, is intended to strengthen Cenomi Retail’s balance sheet and support its long-term growth strategy.

Cenomi Retail operates an extensive portfolio of food and retail outlets across Saudi Arabia, while Al-Futtaim, a privately owned business group based in the UAE, has diversified interests across automotive, financial services, real estate, and retail.

“This investment represents substantial foreign direct investment (FDI) from the UAE private sector and highlights the robust economic partnership between our countries,” said Omar al-Futtaim, Vice Chairman and CEO of Al-Futtaim, in the statement.

The acquisition supports Saudi Arabia’s ongoing push to attract foreign direct investment under its Vision 2030 strategy, which aims to reduce reliance on oil revenues and accelerate private sector development. It also reflects a wider regional trend of growing cross-border investment and collaboration among leading Gulf economies.