RIYADH: Saudi Arabia’s sovereign wealth fund has invested a total of $1.3 billion in four local construction companies as part of the fund’s capital raising initiative.
According to a press release, the Public Investment Fund has acquired stakes in Nesma & Partners Contracting Company, El Safe Engineering Contracting Company, Alambani Holding Company and Alambani General Contractors Company.
These new transactions are part of PIF’s strategy to support and enable key strategic sectors in Saudi Arabia, in line with the goals outlined in Vision 2030, the fund said in a statement.
It further said that these investments will enable the construction services sectors to enhance capacity, expand capabilities, encourage growth, adopt advanced technologies and improve local supply chains for current and future projects in the Kingdom.
The PIF’s investment is also expected to help these companies expand their operations and business outside Saudi Arabia.
Yazeed A. Al-Hamid, Deputy Governor, said, “These partnerships demonstrate PIF’s commitment to unlocking the potential of key strategic sectors in Saudi Arabia, including construction and manufacturing components and the services sector, which has been recognized locally as one of the 13 strategic sectors.” recognized as one of the and Head of MENA Investments at PIF.
PIF said its investment in the four national champions will support local capacity expansion across the region and encourage private sector participation and investment to meet current and future demand in line with Vision 2030.
Abdulaziz Al Turki, Chairman of Nesma & Partners Contracting Company, said the partnership “will strengthen our position as one of the leading construction companies in Saudi Arabia, and empower us to contribute to achieving the Vision 2030 objectives.” ”
On his part, Khaled El Seif, Chairman of Al Seif Engineering Contracting Company, said: “The investment will support the growth and development of the sector and contribute to enhancing the capacity and local content of the private sector, enabling us to deliver to the world – As leading projects in the country, we strive to be leading players in the sectors in which we operate.”
Earlier in January, data released by the Sovereign Wealth Fund Institute suggested that the PIF retained the sixth position in the list of top sovereign wealth funds in the world with assets of $607.42 billion.
PIF is leading the economic diversification journey in Saudi Arabia through strategic international and national investments.
Currently, PIF has 71 companies in 10 different sectors and has created over 500,000 direct and indirect jobs.
In November 2022, PIF Governor Yasir Al-Rumayyan stated that the fund plans to create even more jobs.
“We want to create 1.8 million jobs, and these are quality jobs. It is not just the figures we are looking at, but the quality of these figures, the quality of these jobs,” Al-Rumayyn said.
Al-Rumayyan also said that the PIF has a detailed strategy to reach $2 to $3 trillion in fund assets by the end of this decade.
“We have a whole plan from now to 2030 on how to reach $1 trillion and $2 to $3 trillion, and Crown Prince Mohammed bin Salman is determined to reach it,” he said.