Jadwa Investment Acquires Majority Stake in Makhazen Alenaya for Retail Expansion

Jadwa Investment, a leading player in the Saudi Arabian investment landscape, has recently made significant strides in the retail sector. The firm has acquired a majority stake in Makhazen Alenaya, a contemporary retail concept with 15 locations across Saudi Arabia. This acquisition is part of Jadwa's broader strategy to invest in consumer-focused industries, particularly those that align with the goals of Saudi Arabia's Vision 2030. Vision 2030 aims to modernize and diversify the Saudi economy, and Makhazen Alenaya's focus on offering a well-curated assortment of goods at reasonable prices in a high-end retail setting makes it a strategic fit for Jadwa's investment strategy.

Makhazen Alenaya, established in 2019, is revolutionizing contemporary retail concepts and has 15 locations throughout Saudi Arabia. In a high-end retail setting, it offers a well-curated assortment of goods at reasonable costs. Its growth is supported by Vision 2030’s push on modernization and diversification. It reflects changing consumer tastes. This makes it a good fit for the retail investment strategy of Jadwa Private Equity, which emphasizes value-driven consumer propositions and tenable business models.

The acquisition of Makhazen Alenaya is Jadwa's fourth investment under its GCC Diversified Private Equity Fund, following previous investments in Gissah Perfumes, Blackspoon Group, and Tikkaway. This move underscores Jadwa's commitment to scalable, high-growth consumer platforms. The retail sector in Saudi Arabia is experiencing rapid growth, driven by economic reforms and a shift in consumer preferences. Makhazen Alenaya's scalable operations and strong market traction position it well for further expansion, both organically and through potential acquisitions. With Jadwa's backing, the company is poised to rapidly reach new markets and enhance its digital integration.

Tariq Al Sudairy, CEO of Jadwa Investment, highlighted the firm's confidence in Saudi Arabia's evolving retail landscape. He noted that economic reforms and the demand for new consumer experiences support Jadwa's investment thesis. The partnership with Makhazen Alenaya is expected to dominate the high-margin, high-frequency beauty and personal care sector, which is booming in the Kingdom. This strategic move aligns with Jadwa's goal of scaling its retail investments into IPO-ready enterprises. Makhazen Alenaya's long-term ambition is to list on the Saudi Exchange Main Market, and Jadwa's support will help achieve this goal.

Elie El Khoury, Head of Private Equity at Jadwa, emphasized that Makhazen Alenaya leads its segment in innovation and value creation. This aligns with Jadwa's strategy to build dominant, future-ready platforms. The next steps for Makhazen Alenaya include strong governance, professionalization, and operational expansion. Jadwa's clients, ranging from sovereign entities to high-net-worth individuals, seek exposure to resilient growth sectors like retail. The firm's retail-forward approach ensures stronger returns and aligns with the evolving investor appetite.

As Jadwa exits its pharmaceutical investment, it is clear that the firm is pivoting towards sectors with faster growth cycles and greater consumer adaptability. The sale of its pharmaceutical unit and the acquisition of Makhazen Alenaya signal a targeted rotation in asset allocation. Jadwa's private equity retail investment strategy focuses on premium mass retail, scalable store networks, and omnichannel models. This strategy positions Jadwa to benefit from the tailwinds of Vision 2030 as it continues to transform consumption patterns in Saudi Arabia. Future announcements from Jadwa may include new fund vehicles or co-investment platforms targeting categories such as beauty, fashion, or health, further solidifying its retail-forward approach.