Huda Beauty, the Dubai-based cosmetics brand, has announced that it will sell its stake in its fragrance division, Kayali, to the American growth equity firm General Atlantic. The terms of the deal, including the financial details, have not been disclosed.

Under this new arrangement, Kayali will be run as a joint venture between General Atlantic and Mona Kattan, the sister of Huda Kattan, the founder of Huda Beauty. Huda Kattan launched the beauty company in 2013 alongside her sisters and husband. Mona Kattan will remain the CEO of Kayali and will co-own the brand with General Atlantic.

This transaction also enables Huda Beauty to regain full control by redeeming a minority stake held by TSG Consumer Partners, which had valued the company at $1.2 billion back in 2017. Post-sale, Kayali will function as a separate entity from Huda Beauty, marking a significant change for the fragrance brand.

Goldman Sachs International has acted as the financial advisor to Huda Beauty, while Gibson Dunn served as the legal advisor. On the other side, General Atlantic’s financial advisory came from Raymond James, and legal services were provided by Latham & Watkins.

The move comes as the GCC cosmetics market is projected to see significant growth, expected to reach $14.4 billion by 2033, growing at a 6% annual rate from 2024’s market size of $8.5 billion, according to Imark Research.

This expansion is further supported by the increasing success of regional e-commerce beauty companies, such as Saudi Arabia’s Nice One, which recently raised $320 million in an IPO on the Tadawul stock exchange.