February 8, 2024 : In a landmark move signifying further regional expansion, prominent Middle Eastern and North African (MENA) discount retailer Kazyon has acquired a 50% stake in Dukan, a pioneering convenience store chain based in Saudi Arabia. This strategic transaction, facilitated by the esteemed investment bank EFG Hermes, marks Kazyon’s official entry into the burgeoning Saudi retail market.
Previously boasting over 1,000 stores across Egypt and Morocco, Kazyon has established itself as a dominant force in the discount retail sector, catering to millions of customers across its extensive network. Founded in 2013 by the Al Dabbagh Group, Dukan boasts a well-established presence with over 100 stores strategically located in Jeddah, Makkah, and Al Taif and ambitious plans for further expansion into the capital city of Riyadh.
This strategic acquisition, facilitated by EFG Hermes’ investment banking division, positions Kazyon to leverage Dukan’s existing infrastructure and market knowledge to gain a foothold in the promising Saudi retail landscape. While Kazyon assumes a 50% stake, the remaining 50% will be retained by Dukan’s current shareholder, Al Dabbagh Group, ensuring continuity and local expertise.
Industry analysts anticipate this venture to yield significant synergies. Kazyon’s vast experience in discount retail operations and supply chain management, coupled with Dukan’s established local presence and brand recognition, is expected to create a formidable market contender. The combined entity will be well-positioned to cater to the evolving needs of Saudi consumers, offering a wider product selection, competitive pricing, and enhanced convenience through an expanded store network.
This landmark acquisition signifies Kazyon’s commitment to regional expansion and underscores the growing appeal of the Saudi retail market for international investors. The combined expertise and resources of Kazyon and Dukan are poised to create a dynamic force in the Saudi retail landscape, offering exciting opportunities for growth and value creation for all stakeholders involved.