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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