Riyadh – Mubasher: The Public Investment Fund (PIF) unveiled an investment of up to $1.30 billion in four local construction services firms in Saudi Arabia.
The investment was concluded by way of subscribing to new shares as part of capital hikes representing significant minority stakes in Nesma & Partners Contracting Company, El Seif Engineering Contracting Company, Al Bawani Holding Company, and Almabani General Contractors Company.
Such partnerships between PIF and the four companies will endorse their regional and international expansion of both operations and businesses, according to a press release.
PIF’s investment will further contribute to enabling the construction services sector in the Kingdom while boosting local supply chains for current and future projects as part of developing Saudi Arabia’s construction ecosystem and being in line with Vision 2030.
Leveraging its global reach, the sovereign wealth fund will enable the four enterprises to develop regional and international partnerships; a step that will help deepen the adoption of the latest technologies besides the transfer of knowledge from global engineering, procurement, and construction (EPC) firms.
Deputy Governor and Head of MENA Investments at PIF, Yazeed Al Humied, said: “These partnerships demonstrate PIF’s commitment to unlock the capabilities of key strategic sectors in Saudi Arabia, including the construction and building components and services sector, which has been identified as one of 13 strategic sectors locally.”
Meanwhile, the Chairman of Al Bawani, Fakher AlShawaf, commented: “The partnership with PIF presents us with an exceptional opportunity for growth.”
Abdulaziz Al Turki, Chairman of Nesma & Partners Contracting, said: “As a leading sustainable Saudi company operating for over 40 years in harmony with our local society and environment, we are seeking to maintain the highest global standards to positively contribute to the Saudi economy.”
Chairman of El Seif Engineering Contracting, Khaled El Seif, noted: “The investment will support the growth and development of the sector and will contribute to scaling up capacity and private sector local content, enabling us to deliver world-leading projects in the country as we strive to become the leading player in the sectors in which we operate.”
As for Youssef Nehme Tohme, Chairman of Almabani General Contractors, said: “Our vision is to build projects that contribute to the welfare of society, and we look forward to working with PIF to help play our part in delivering key projects vital to the realization of Vision 2030.”
Tohme added: “The Kingdom aims to increase the role of the private sector within the economy, and this investment will enhance the ability of private sector firms to provide key services.”
In December 2022, PIF announced the establishment of Aseer Investment Company (AIC) as its investment arm in the Saudi region Aseer to support local and foreign direct investments.
