Riyadh — FIM Partners, a leading emerging and frontier markets investment firm with over USD 4.5 billion in assets under management and offices in Riyadh, Dubai, London and Muscat, today announced the acquisition of a significant stake in Ala Kaifak, the Kingdom’s leading non-food discount retailer.

Founded in 1998, Ala Kaifak serves more than 5 million customers a year across 33 stores nationwide, offering value-seeking shoppers a broad range of cleaning products, personal care items, homeware and kitchenware at affordable prices. The business continues to deliver rapid double-digit year-over-year growth, underpinned by rising footfall and strong execution. Adel Al Haqbani and Issam Al Haqbani will continue to provide strategic leadership as Executive Board Members, guiding the company through its current phase of growth.

This marks FIM Partners’ second investment in Saudi discount retail. In 2024, portfolio company Kazyon acquired a controlling stake in Dukan. FIM Partners typically takes significant minority or majority positions and targets investment sizes of USD 75 to 125 million. This transaction aligns with the firm’s strategy to back high-growth, profitable businesses and lay the foundation for an IPO on Tadawul in the coming years.

Discount retail remains underpenetrated in Saudi Arabia at approximately 1% of total retail, compared to above 5% in mature markets such as the UK and US, indicating significant runway as formats formalize and consumers trade into value.

The company plans to expand its large-format store network over the coming years while preparing for a potential IPO on Tadawul. Expansion will focus on cities beyond Riyadh, with priority on the Western and Eastern Provinces and select tier 2 and tier 3 cities where discount retail is relatively underpenetrated and value-conscious consumers have fewer organised options. These locations typically offer lower rents, strengthening the everyday value proposition and store-level economics. In parallel, Ala Kaifak will drive retention and higher spend across its large customer base by launching a loyalty programme and partnering on buy now pay later (BNPL) solutions, alongside scaling e-commerce in key catchments to complement the store network.

Adel Al Haqbani, Chairman of Ala Kaifak, said: “We’re proud of what Ala Kaifak has built for Saudi families. Partnering with FIM Partners positions us to scale faster, broaden our assortment, and keep delivering outstanding value to millions of customers across the Kingdom.”

Suveer Arenja, Director of Private Investments, FIM Partners, said: “Ala Kaifak combines a trusted brand with disciplined retail execution in a market where value matters more than ever. With discount retail still early in Saudi Arabia, we see a long runway for growth and are excited to partner with the Haqbani family in the next chapter.”

About Ala Kaifak

Ala Kaifak is Saudi Arabia’s leading non-food discount retailer, founded in 1998 and operating 33 stores nationwide. The company serves over 5 million customers annually with a wide range of everyday essentials across cleaning, personal care, homeware and kitchenware.

About FIM Partners

FIM Partners is an investment firm focused on public and private markets across the Middle East, North Africa and South Asia, managing over USD 4.5 billion from offices in Riyadh, Dubai, London and Muscat. FIM Partners KSA is licensed by the Capital Market Authority (CMA). FIM UAE is regulated by the DFSA and FIM UK by the FCA.

For further information, please contact investorrelations@fimpartners.com

For further information please contact
Nigel Sillitoe
CEO, Insight Discovery
Email: sillitoe@insight-discovery.com