The PIF is reportedly helping Noon build a war chest to defend its Saudi digital grounds against competitors. The e-commerce platform raised USD 500 mn from the fund, Emirati founder Mohammed Alabbar, and other unnamed backers, Semafor reported, citing sources it says are familiar with the matter.

Our take? The fresh capital is needed for Noon to stand up to competition from local and global players, allowing it to grow its marketplace, maintain competitive pricing, and counter fast-expanding smaller rivals.

It’s getting hot out there. Amazon is deepening its grocery push in MENA, China’s Meituan has entered the Middle East with food delivery and dark stores, and Carrefour is capitalizing on its supply chain and store network. Meanwhile, Saudi’s Ninja raised USD 250 mn for expansion, while low-cost platforms Shein and AliExpress are also getting in the mix more and more.

Background

The company is also considering a dual listing on the Saudi and UAE stock exchanges within the next two years as it moves toward profitability, and is exploring mergers and acquisitions to expand into new markets such as India. It is also expanding its automated self-delivery services, aiming to cut its 40k delivery workforce by half by 2027.

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