Arab News, Sun, May 26, 2024 | Dhu al-Qadah 18, 1445
From tennis to paper, PIF pushes ahead with its diverse investments strategy in 2024
Saudi Arabia:
Tennis, tech and paper production are just some of the areas Saudi Arabia’s
Public Investment Fund has reached into so far in 2024, as the body continues to
drive forward the Kingdom’s economic diversification agenda.
The sovereign wealth fund has continued with the
momentum built up in 2023, which saw it make investments in companies as diverse
as London’s Heathrow Airport and Rocco Forte Hotels.
Its activities since the turn of the year saw PIF
revise its asset size on its website, reaching $925.2 billion after it climbed
to the fifth spot in a ranking of state-owned investment organizations by the
Sovereign Wealth Fund Institute.
This monumental rise in the fund’s standing
followed its procurement of an additional 8 percent stake in Aramco, boosting
its shareholding’s estimated value to $328 billion.
Here are some of the key announcements made by the
wealth fund so far in 2024
PIF’s deal with Bahrain Mumtalakat to enhance
investments
One of the primary deals signed by PIF in the
first quarter was a memorandum of understanding inked with Bahrain’s sovereign
wealth fund Mumtalakat in March.
The agreement aims to expand cooperation between
the two parties, enable new and promising investment prospects in Bahrain, and
create opportunities for private companies in both countries.
Yazeed Al-Humied, deputy governor and head of MENA
Investments at PIF, said the deal supports the wealth fund’s objectives of
building long-term strategic regional partnerships that bring additional value
to local economies.
“It also enables the achievement of sustainable
returns that further contribute to maximizing PIF’s assets and diversifying the
economy in line with the objectives of Saudi Vision 2030,”
said Al-Humeid.
PIF acquired 40 percent stake in Zamil Offshore
In February, the wealth fund acquired a 40 percent
stake in Zamil Offshore Co., a significant move that could boost marine support
services in Saudi Arabia.
In a press statement, PIF revealed that this
investment is part of the fund’s broader strategy to contribute to the
development of the Kingdom’s energy base.
Zamil Offshore Co. is one of the largest
Saudi-based offshore support providers, operating over 90 vessels in the Arabian
Gulf.
Bakr Al-Muhanna, head of the Transport and
Logistics Sector in Middle East and North Africa Investments at PIF, said that
this investment will strengthen the offshore support industry, contributing to
the fund’s wider efforts to develop Saudi Arabia’s energy ecosystem.
PIF’s efforts to accelerate growth of global
tennis sports
In February, the wealth fund signed a multi-year
strategic agreement with the Association of Tennis Professionals aimed at
accelerating the growth of the sport globally.
“Through our collaboration with ATP, PIF will be a
catalyst for the growth of the global tennis landscape, developing talent,
fostering inclusivity and driving sustainable innovation. This strategic
partnership aligns with our broader vision to enhance quality of life and drive
transformation in sport both within Saudi and across the world,” said Mohamed
Al-Sayyad, head of corporate brand at PIF.
Under the deal, PIF will leverage ATP’s expertise
to develop further opportunities for young Saudis in wtennis, including the
development of state-of-the-art facilities and ensuring the availability of
necessary coaching in the Kingdom.
The launch of Alat
Another significant development in February was
the launch of Alat, a PIF firm aimed at turning Saudi Arabia into a global hub
for sustainable technology manufacturing.
The company will prioritize constructing products
tailored for local and international markets across seven strategic business
units. These include advanced industries and semiconductors, smart appliances
and health solutions, as well as smart devices and building technologies.
Alat will also manufacture more than 30 product
categories that will serve vital sectors, including robotic and communication
systems, advanced computers and digital entertainment, as well as advanced heavy
machinery used in construction, building and mining.
Acquisition of Mepco in diversification push
In January, PIF bought a 23.08 percent stake in
the Middle East Paper Co. as the fund continued expanding its investments in the
Saudi economy’s primary sectors.
According to a statement, the body acquired the
stakes by increasing capital and subscribing to new shares in Mepco. Muhammad
Aldawood, PIF’s head of the industrials and mining sector in the Middle East and
North Africa region, said the fund’s investment in Mepco reflects the attractive
growth opportunities in promising sectors such as recycling, retail, and
building materials.
The fund added that PIF’s investment in Mepco will
support the private sector in Saudi Arabia, boost local content, increase
exports as well as improve quality and competitiveness.
Sami Al-Safran, CEO of MEPCO, said that PIF’s
investment will help the company become a national champion in the recycling
industry.
“PIF’s investment further enables the
implementation of our expansion strategy and captures significant growth
potential, both locally and regionally,” said Al-Safran.
Completion of the acquisition of Dubai-based Kent
In February, Saudi contractor Nesma & Partners,
backed by PIF, completed the acquisition of Kent, based in Dubai, after signing
an agreement in 2023.
In a statement, Nesma said that the acquisition
aligns with the company’s strategic growth strategy and aims to position the
firm as a global leader in the construction industry.
“The acquisition of Kent represents a significant
milestone for Nesma & Partners, reinforcing our commitment to expanding our
capabilities and enhancing our position in the global market,” said Samer Abdul
Samad, president and CEO of Nesma & Partners.
According to the acquisition details, Kent and
Nesma do not plan to integrate operations, and both firms will continue their
existing projects.
PIF aims to strengthen electric motorsports sector
In January, the wealth fund signed a multi-year
agreement named Electric 360 with Formula E, Extreme E and E1 to support the
growth of electric motorsports and their role in advancing the future of
electric mobility.
In a press statement, PIF said the partnership
will drive technological innovation and revolutionize sustainable transport and
future mobility, ultimately reducing carbon emissions.
“Together with these championship series, Electric
360 will redefine electric sport and supercharge its growth, delivering tangible
impact aligned with our broader business strategy as PIF drives new green
technological innovation that will be the cornerstone of future electric
mobility,” said Mohamed Al-Sayyad, head of corporate brand at PIF.