Spinneys raises its Saudi wager to build out its biggest market outside the UAE

Wagers on Saudi growth: Dubai-based supermarket chain Spinneys’ strategy is positioning Saudi Arabia as its biggest long-term growth market outside the UAE, wagering on rising incomes, rapid urbanization, and a growing appetite for premium grocery retail, CEO Sunil Kumar tells EnterpriseAM.

REMEMBER- The company announced an additional 20% of its Saudi subsidiary from Al Hokair Holding Group for SAR 18 mn. With this move, the company will increase its stake in its Saudi subsidiary to 70% from 50%, but the transaction still needs regulatory clearance.

More than stores: The increased stake provides Spinneys with control over its Saudi operations and supports faster execution of its investment strategy. “Increasing Spinneys’ stake to 70% gives the business stronger control over the Saudi operation, greater economic participation in its growth, and more flexibility to invest in stores, fresh food, private label, and service standards,” Kumar says.

The higher stake also increases Spinneys’ economic interest in a market it views as one of its most important growth engines. “It also supports a faster rollout of key growth levers, such as new store openings, which is a core part of our broader strategy to accelerate profitable growth,” Kumar adds.

Two cities take the lead: Having entered Saudi Arabia in 2024 with its first store at La Strada Yard in Riyadh, the retailer is prioritizing Riyadh and Jeddah, where purchasing power and population growth are strongest. The company plans to steadily expand its store network to around 10-12 stores by 2028, while targeting Riyadh and Jeddah, as demand in the premium grocery market is expected to grow at a CAGR of 6.4% over the same period.