The agencies involved in the four-way pitch were informed of the decision last week, with OMD, Starcom Mediavest and UM7 failing to dislodge the account from the incumbent agency.
A source from one of the losing media agencies confirmed that Initiative Media had retained the J&J brief.
The protracted pitch for the multi-million dollar account, which includes J&J's baby oil and shampoo range, as well as its Clean & Clear line of skin products, is understood to have taken up to four months and suffered from delays.
Initiative Media is part of the Middle East Communications Network, which also includes UM7, and advertising agency Fortune Promoseven.