ADNH Catering to Increase Stake in Saudi Venture, Compass Exits
- Dec. 13, 2024
- FMCG HORECA BUSINESS

Abu Dhabi National Hotels (ADNH) Catering is set to boost its stake in its Saudi Arabian joint venture, Compass Arabia, to 50%. This deal, reached between ADNH, Compass Group International, and Al-Rushaid Petroleum Investment Co., marks a significant milestone in the company's growth strategy. Currently, ADNH Catering holds a 30% stake, but following the transaction, Al-Rushaid will own the remaining 50%, while Compass Group will make a full exit from the venture.
The agreement is expected to be finalized by the first quarter of 2025, following a series of stake swaps, after which the company will undergo a rebranding, marking the change in ownership. This move reflects ADNH Catering’s strategic focus on expanding its footprint in Saudi Arabia, especially following its successful IPO earlier this year.
Strategic Expansion in Saudi Arabia
ADNH Catering’s expanded stake in the Saudi venture is in line with the company’s long-term vision of broadening its operations in the Kingdom. As part of this strategy, ADNH aims to grow its presence across various business segments and provinces in Saudi Arabia, including Riyadh, one of the country’s most vibrant and rapidly developing cities.
Clive Cowley, CEO of ADNH Catering Group, remarked on the deal, stating, “We are seeking to build out from our market-leading position in the UAE to expand ADNH Catering Group’s operations across various business segments and provinces in the kingdom, including Riyadh.” The move is a step forward in achieving the goals set out in ADNH Catering's strategy, especially after their IPO earlier in October 2023.
A History of Successful Partnerships
This deal mirrors a previous arrangement between ADNH Catering and Compass Group in the UAE, where Compass Group also exited the venture. The history of collaboration between the two companies dates back to 2012 when ADNH Catering and Compass Group jointly launched Compass Arabia in Saudi Arabia.
Since then, the venture has played an important role in ADNH Catering’s growth in the region. With a nearly 30% share of the UAE catering services market and key clients in both the government and private sectors, ADNH Catering has firmly established itself as a leader in the industry. The company also operates several central kitchens across the UAE, further expanding its capabilities.
Looking Ahead: A Growing Presence in Saudi Arabia
As the deal progresses, ADNH Catering is poised to leverage its strengthened position in Saudi Arabia. The company’s success in the UAE has provided a strong foundation for its expansion into the Saudi market. With this move, ADNH Catering aims to continue growing its regional presence and contributing to the hospitality and catering sectors in the UAE and Saudi Arabia.
With this strategic shift in the Saudi venture, ADNH Catering is on track to further solidify its leadership position in the regional catering industry while expanding its reach and operations in one of the Middle East’s most promising markets.