Saudi Arabia’s sovereign wealth fund has announced it has acquired a 25 percent stake in Emaar, the Economic City (EEC).
EEC, linked to Dubai property developer Emaar and working on Saudi Arabia’s King Abdullah Economic City, issued new shares to PIF through a SR2.8 billion ($755 million) debt conversion, Saudi Press Agency reported.
It added that the transaction was completed after obtaining required regulatory approvals.
PIF said its strategic investment will provide an opportunity to leverage synergies in the real estate, manufacturing, logistics and tourism sectors.
PIF added that it believes that the transaction will also accelerate the development of EEC by establishing King Abdullah Economic City (KAEC) as a great enabler of socio-economic development in Saudi Arabia.
“Furthermore, the investment will aim to unlock the capabilities of promising 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 said.
Aiman AlMudaifer, head of PIF’s Local Real Estate Division, said: “We are pleased to conclude this transaction. It has the potential not only to be a win-win for PIF and EEC but also to deliver wider benefits for the broader Saudi economy in line with the aims set out in Saudi Vision 2030.
“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.”
Cyril Piaia, CEO of Emaar, the Economic City, the master developer of King Abdullah Economic City – said: “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.”
PIF is at the core of Crown Prince Mohammed bin Salman’s Vision 2030, a plan to end the kingdom’s reliance on oil and transform it into a global investment power.
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