FIM Partners has acquired a significant stake in Ala Kaifak, the Kingdom’s leading non-food discount retailer.
FIM Partners is a leading emerging and frontier markets investment firm with over $4.5 billion in assets under management and offices in Riyadh, Dubai, London, and Muscat.
This marks FIM Partners’ second investment in Saudi discount retail. In 2024, portfolio company Kazyon acquired a controlling stake in Dukan.
FIM Partners typically takes significant minority or majority positions and targets investment sizes of $75 million to $125 million. This transaction aligns with the firm’s strategy to back high-growth, profitable businesses and lay the foundation for an IPO on Tadawul in the coming years.
FIM Partners Expands Footprint in Saudi Retail Market
The company plans to expand its large-format store network over the coming years while preparing for a potential IPO on Tadawul. Expansion will focus on cities beyond Riyadh, with priority on the Western and Eastern Provinces and select tier 2 and tier 3 cities where discount retail is relatively underpenetrated and value-conscious consumers have fewer organized options.
These locations typically offer lower rents, strengthening the everyday value proposition and store-level economics. In parallel, Ala Kaifak will drive retention and higher spend across its large customer base by launching a loyalty program and partnering on buy now pay later (BNPL) solutions, alongside scaling e-commerce in key catchments to complement the store network.
Adel Al Haqbani, Chairman of Ala Kaifak, said that, “We’re proud of what Ala Kaifak has built for Saudi families. Partnering with FIM Partners positions us to scale faster, broaden our assortment, and keep delivering outstanding value to millions of customers across the Kingdom.”
Suveer Arenja, Director of Private Investments, FIM Partners, noted that, “Ala Kaifak combines a trusted brand with disciplined retail execution in a market where value matters more than ever. With discount retail still early in Saudi Arabia, we see a long runway for growth and are excited to partner with the Haqbani family in the next chapter.”
