Saudi Arabia-based wealth funding firm Public Investment Fund (PIF) has agreed to acquire a 30% stake in grocery store chain Tamimi Markets.

Tamimi Markets in Saudi Arabia has a network of more than 100 stores and five distribution centres.

The retailer offers a wide variety of local and international products, as well as brands exclusive to Tamimi.​

The share subscription agreement aligns with PIF’s strategy to develop key sectors in Saudi Arabia.

Through this acquisition, the wealth fund aims to transform Tamimi Markets from a leading retail chain to a major chain in the region. It plans to conduct an initial public offering for the retailer.

In addition, PIF aims to facilitate access to the growing online grocery market and establish international sourcing centres to improve profitability and product offerings.

PIF MENA Investments Division, consumer goods and retail head Majed AlAssaf 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 capitalise 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.”

PIF has also invested in other retail companies, including e-commerce platforms Noon.com, Halal Products Development Company and Americana Restaurants International.

Completion of Tamimi Markets’ acquisition is subject to approvals from the relevant authorities and satisfaction of certain conditions under the agreement.