PIF is tightening its belt — everywhere except e-commerce. Despite a directive to slash portfolio spending by 20% next year, the Public Investment Fund (PIF) has reportedly co-led a USD 500 mn funding round alongside its founder Mohamed Alabbar. It’s not clear whether the stakes of involved parties would change, but the latest updates confirm that PIF holds 50%, with Alabbar and others owning the remainder.

The e-commerce competition is heating up in GCC: Amazon is deepening its grocery push in the Gulf, and China’s Meituan entered the Middle East with a focus on food delivery and delivery-only stores. Meanwhile, Saudi’s Ninja raised USD 250 mn to expand in the region.

Why it matters

The newly raised capital and a potential IPO could fuel Noon’s expansion and automation. The company is considering a dual listing on the Saudi and UAE stock exchanges within the next two years as it moves toward profitability. Meanwhile, it is expanding its automated self-delivery services, aiming to cut its 40k delivery workforce by half by 2027. Noon is also exploring mergers and acquisitions to expand into new markets, such as India.

PLUS– The fresh capital will help Noon navigate intense competition from local and global players, allowing it to grow its marketplace, maintain its foothold amid pricing competition, and counter fast-expanding smaller rivals.

DATA POINT- Saudi Arabia’s e-commerce market is set to double from a USD 15 bn in 2024 towards almost USD 30 bn by 2030, suggesting digital commerce is well-positioned to play a leading role in diviersfying the country’s economy and supporting non-oil GDP growth.

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