Home GCC Saudi Arabia Saudi sovereign wealth fund acquires 25% stake in Emaar the Economic City The transaction is in line with Public Investment Fund’s Strategy 2021-2025, which focuses on building strategic economic partnerships by Zainab Mansoor September 27, 2021 The Public Investment Fund (PIF), Saudi Arabia’s sovereign wealth fund and Emaar, the Economic City (EEC) announced the completion of their transaction, through which PIF will become a major shareholder in EEC with a 25 percent stake. The transaction, which was completed after obtaining required regulatory approvals, involved the novation to PIF of SAR 2.8bn ($755m) of EEC’s debt. Post the completion of the novation, PIF has become an equity investor in EEC following the issuing of new shares by debt conversion. PIF’s strategic investment will provide an opportunity to leverage synergies between EEC and PIF’s ecosystem in the real estate, manufacturing, logistics and tourism sectors, a statement said. #PIF and Emaar, the Economic City (EEC) announced today the completion of their transaction, through which PIF will become a major shareholder in EEC with a 25% stake. Read more: https://t.co/l1BvnaGPom pic.twitter.com/OW5l9P6GpP — Public Investment Fund (@PIF_en) September 27, 2021 Furthermore, the investment will aim to unlock the capabilities of non-oil sectors to enhance Saudi Arabia’s efforts to diversify revenue sources, create strategic and operational value, improve the primary infrastructure, and support economic development, the statement added. Aiman AlMudaifer, head of PIF’s local real estate division, said: “Our investment in EEC aligns with our broader 2021-2025 strategy, which aims to build strategic economic partnerships through PIF and unlock the capabilities of promising sectors in the kingdom, including transportation, logistics, real estate and tourism.” “We welcome the Public Investment Fund as a major shareholder in Emaar, the Economic City. This is a significant milestone for KAEC that will accelerate its role as a socio-economic development platform in Saudi Arabia and will enable it to contribute its share to the goals and objectives of vision 2030,” added Cyril Piaia, chief executive officer of Emaar, the Economic City, the master developer of King Abdullah Economic City. Last year, the fund overhauled some of its top management as it prepared to take a greater role in the local economy. Read: Saudi’s $360bn sovereign wealth fund PIF rejigs top leadership In January, it also launched its five-year strategy, including its Vision Realisation Programme (VRP) 2021-2025, by virtue of which PIF would invest a minimum of $40bn annually in domestic projects and investments, contribute $320bn to non-oil GDP cumulatively through its portfolio companies, grow assets under management to over $1.07 trillion, and create 1.8 million direct and indirect jobs by the end of 2025. Read more: Saudi’s Public Investment Fund launches 5-year strategy; assets treble to $400bn Tags Economy Emaar King Abdullah Economic City Public Investment Fund 0 Comments You might also like Sheikh Mohammed approves new master plan for Expo City Dubai Abu Dhabi’s non-oil GDP surges by 6.6% in Q2 2024 Saudi Arabia expects deficit of 2.9% of GDP in 2024 Saudi Arabia’s Diriyah agrees deals worth $1bn with European firms