Saudi Arabia's grocery retail market is forecast to grow 2.8 per cent annually between 2020 and 2027 to reach 177.5 billion Saudi riyals. Photo: BinDawood Holding
Saudi Arabia's grocery retail market is forecast to grow 2.8 per cent annually between 2020 and 2027 to reach 177.5 billion Saudi riyals. Photo: BinDawood Holding
Saudi Arabia's grocery retail market is forecast to grow 2.8 per cent annually between 2020 and 2027 to reach 177.5 billion Saudi riyals. Photo: BinDawood Holding
Saudi Arabia's grocery retail market is forecast to grow 2.8 per cent annually between 2020 and 2027 to reach 177.5 billion Saudi riyals. Photo: BinDawood Holding

BinDawood snaps up majority stake in e-grocery partner IATC as online sales pick up


Fareed Rahman
  • English
  • Arabic

BinDawood Holding, one of Saudi Arabia's biggest grocery retailers, is buying a majority share in its e-commerce partner International Applications Trading Company as it seeks to capitalise on the higher demand for online shopping.

BinDawood signed an agreement to acquire 62 per cent of IATC through its subsidiary Future Technology Retail, it said in a statement on Sunday to the Tadawul stock exchange, where its shares are traded.

As part of the transaction, Future Technology Retail will make an immediate payment of 107.5 million Saudi Riyals ($29m) to IATC, with additional payments in 2023 and 2026, subject to the achievement of certain revenue milestones.

“The acquisition of a majority stake in IATC is a major step towards enhancing our e-commerce offering and strengthening our omnichannel presence – enabling BinDawood Holding to control the future growth of its business in an increasingly digitally connected world,” Ahmad BinDawood, chief executive of BinDawood said.

“Expanding digital transformation and technical solutions is in line with Vision 2030. Saudi Arabia is among the largest and the fastest-growing e-commerce markets in the region, with e-grocery shopping still in a nascent phase. I am confident that this strategic acquisition will put BinDawood Holding in a prime position to capitalise on the growth of the sector.”

BinDawood store
BinDawood store

The total grocery retail market in Saudi Arabia is forecast to grow 2.8 per cent annually between 2020 and 2027 to reach 177.5 billion riyals, while total grocery e-commerce penetration is expected to grow to 3.5 per cent by 2027 from 0.8 per cent, BinDawood said, quoting data from Euromonitor and KPMG analysis.

The kingdom's e-commerce market, which grew about 60 per cent in 2019-2020 amid a digital surge that accelerated during the pandemic, is poised to hit $13.3bn by 2025, according to Boston Consulting Group and Meta Platforms.

BinDawood aims to capture 30 per cent of Saudi Arabia’s e-grocery market by 2028 as online sales continue to increase after the pandemic, it said.

As part of the transaction agreement, the founder and the management team of IATC will remain with the company and BinDawood will invest a further 160m riyals in IATC over a two-year period to “support the development of the platforms and the roll-out of a network of state-of-the-art dark stores and fulfilment centres to optimise operations, fully integrate the customer experience and provide shorter lead delivery times,” the company said.

The transaction, subject to customary closing conditions and completion of regulatory approval, is expected to close in the second half of 2022.

The volume of merger and acquisition deals in the Middle East and North Africa surged 66 per cent last year as the region's economies charted a strong recovery from the pandemic.

Last year, 661 transactions worth $99bn were completed, compared with 397 deals worth $85.2bn in 2020, according to Ernst & Young.

The UAE registered the highest deal activity in terms of volume with 303 transactions, while Saudi Arabia attracted the most M&A capital, worth $47.4bn, according to the consultancy. Egypt, the Arab world's third-largest economy, also reported robust activity in 2021 with 118 deals worth $7.7bn.

Getting there

The flights

Flydubai operates up to seven flights a week to Helsinki. Return fares to Helsinki from Dubai start from Dh1,545 in Economy and Dh7,560 in Business Class.

The stay

Golden Crown Igloos in Levi offer stays from Dh1,215 per person per night for a superior igloo; www.leviniglut.net 

Panorama Hotel in Levi is conveniently located at the top of Levi fell, a short walk from the gondola. Stays start from Dh292 per night based on two people sharing; www. golevi.fi/en/accommodation/hotel-levi-panorama

Arctic Treehouse Hotel in Rovaniemi offers stays from Dh1,379 per night based on two people sharing; www.arctictreehousehotel.com

GAC GS8 Specs

Engine: 2.0-litre 4cyl turbo

Power: 248hp at 5,200rpm

Torque: 400Nm at 1,750-4,000rpm

Transmission: 8-speed auto

Fuel consumption: 9.1L/100km

On sale: Now

Price: From Dh149,900

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UK's plans to cut net migration

Under the UK government’s proposals, migrants will have to spend 10 years in the UK before being able to apply for citizenship.

Skilled worker visas will require a university degree, and there will be tighter restrictions on recruitment for jobs with skills shortages.

But what are described as "high-contributing" individuals such as doctors and nurses could be fast-tracked through the system.

Language requirements will be increased for all immigration routes to ensure a higher level of English.

Rules will also be laid out for adult dependants, meaning they will have to demonstrate a basic understanding of the language.

The plans also call for stricter tests for colleges and universities offering places to foreign students and a reduction in the time graduates can remain in the UK after their studies from two years to 18 months.

Roll of honour 2019-2020

Dubai Rugby Sevens
Winners: Dubai Hurricanes
Runners up: Bahrain

West Asia Premiership
Winners: Bahrain
Runners up: UAE Premiership

UAE Premiership
}Winners: Dubai Exiles
Runners up: Dubai Hurricanes

UAE Division One
Winners: Abu Dhabi Saracens
Runners up: Dubai Hurricanes II

UAE Division Two
Winners: Barrelhouse
Runners up: RAK Rugby

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Tips to stay safe during hot weather
  • Stay hydrated: Drink plenty of fluids, especially water. Avoid alcohol and caffeine, which can increase dehydration.
  • Seek cool environments: Use air conditioning, fans, or visit community spaces with climate control.
  • Limit outdoor activities: Avoid strenuous activity during peak heat. If outside, seek shade and wear a wide-brimmed hat.
  • Dress appropriately: Wear lightweight, loose and light-coloured clothing to facilitate heat loss.
  • Check on vulnerable people: Regularly check in on elderly neighbours, young children and those with health conditions.
  • Home adaptations: Use blinds or curtains to block sunlight, avoid using ovens or stoves, and ventilate living spaces during cooler hours.
  • Recognise heat illness: Learn the signs of heat exhaustion and heat stroke (dizziness, confusion, rapid pulse, nausea), and seek medical attention if symptoms occur.
Global Fungi Facts

• Scientists estimate there could be as many as 3 million fungal species globally
• Only about 160,000 have been officially described leaving around 90% undiscovered
• Fungi account for roughly 90% of Earth's unknown biodiversity
• Forest fungi help tackle climate change, absorbing up to 36% of global fossil fuel emissions annually and storing around 5 billion tonnes of carbon in the planet's topsoil

UK-EU trade at a glance

EU fishing vessels guaranteed access to UK waters for 12 years

Co-operation on security initiatives and procurement of defence products

Youth experience scheme to work, study or volunteer in UK and EU countries

Smoother border management with use of e-gates

Cutting red tape on import and export of food

The specs
  • Engine: 3.9-litre twin-turbo V8
  • Power: 640hp
  • Torque: 760nm
  • On sale: 2026
  • Price: Not announced yet
Key facilities
  • Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
  • Premier League-standard football pitch
  • 400m Olympic running track
  • NBA-spec basketball court with auditorium
  • 600-seat auditorium
  • Spaces for historical and cultural exploration
  • An elevated football field that doubles as a helipad
  • Specialist robotics and science laboratories
  • AR and VR-enabled learning centres
  • Disruption Lab and Research Centre for developing entrepreneurial skills
Updated: March 27, 2022, 11:15 AM`