Saudi Arabia's sovereign wealth fund, the Public Investment Fund, has signed an agreement to invest in Tamimi Markets Company, one of the kingdom’s leading grocery chains.
Following the agreement, the PIF will own 30 per cent of Tamimi Markets through capital increase and subscription for new shares, after obtaining approvals from the relevant authorities and satisfying certain conditions under the pact.
The investment aims to boost Tamimi Markets to realise its full potential and transform into a major regional chain. It aims to support the company’s plans through expansion of its operations and commercial opportunities, including acceleration of regional growth and a potential initial public offering.
“[The] PIF is investing in the grocery and food supply chain to ensure a strong Saudi presence in the market, enabling the private sector to capitalise on positive market demand,” said Majed Al Assaf, head of consumer goods and retail for Mena investments division at the PIF.
“This partnership is expected to contribute to the expansion of Tamimi Markets’ operations and product offering, accelerating its regional growth plans and benefiting consumers through greater choice.
"Our investment aligns with PIF’s strategy to create Saudi national champions in key sectors that contribute to the diversification of the economy,” he added.
One of the world’s largest sovereign wealth funds, the PIF is at the centre of the Saudi Vision 2030, which aims to diversify the kingdom’s economy from hydrocarbons.
The total volume of the fund's assets under management amounted to more than 2 trillion Saudi riyals and it aims to double that by 2025, PIF governor Yasir Al Rumayyan said last month.
The agreement with Tamimi Markets aligns with the fund's strategy to boost the private sector and create Saudi national champions. Since 2017, the PIF has established 77 companies and has generated more than half a million direct and indirect jobs.
It owns several strategic investments in the consumer goods and retail sector, such as online shopping platform noon.com, Halal Products Development Company and Americana Restaurants International.
“This partnership will enable us to accelerate and expand our store network across the region, optimising the significant growth that is expected in this market over the next few years,” Tariq Al Tamimi, chairman of Tamimi Holding, said.
With more than 100 shops and five distribution centres, Tamimi Markets offers a variety of domestic and international products, including brands exclusive to Tamimi.
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
