Riyadh, Feb. 14 (BNA): The Saudi Public Investment Fund (PIF or Fund) today announced an investment of US$1.3 billion by subscribing to new shares as part of capital increases representing significant minority stakes, in four leading local construction companies. Companies: Nesma and Partners Contracting Company, Al Seif Engineering Contracting Company, Al Bawani Holding Company, General Building Contracting Company.
According to the Saudi Press Agency (SPA), the investment will contribute to empowering the construction services sector and improving local supply chains for current and future projects in Saudi Arabia as part of developing the country’s construction ecosystem.
The four companies in which the Public Investment Fund has invested have a successful track record of executing and managing large-scale complex projects across multiple sectors in different regions of Saudi Arabia. Corporate partnerships with the Public Investment Fund will support the regional and international expansion of its operations and business.
The investments will help increase the local content of the private sector, contribute to the growth of the Kingdom’s GDP, strengthen supply chains and increase the competitiveness of the construction services sector. In addition, the investment of the Public Investment Fund aims to unleash the potential of the sector by increasing capacity and expanding capacities as well as creating investment opportunities for the local private sector in current and future projects.
By leveraging its global reach, PIF will enable the four companies to develop regional and international partnerships, which will help increase adoption of the latest technologies and knowledge transfer from global EPC (Engineering, Procurement and Construction) companies.
Yazid Al-Homaid, Deputy Governor and Head of Middle East and North Africa Investments at the Public Investment Fund, said: “These partnerships demonstrate the Public Investment Fund’s commitment to unlocking the capabilities of key strategic sectors in Saudi Arabia, including construction and building components and services, of which it was identified as one from 13 local strategic sectors.
The PIF’s investment in four national companies will support the expansion of local capabilities across the sector and stimulate private sector participation and investment to meet current and future demand, in line with Vision 2030.”
Abdulaziz Al-Turki, Chairman of the Board of Directors of Nesma & Partners Contracting Company, said: “As a leading sustainable Saudi company that has been operating for more than 40 years in harmony with our local community and environment, we strive to maintain the highest international standards to contribute positively to the Saudi economy. We welcome the partnership With the Public Investment Fund, we are proud to work together to help achieve the goals of development and diversification of the local economy, and we believe that this partnership will strengthen our position as one of the leading contracting companies in the Kingdom of Saudi Arabia, and will enable us to contribute to achieving the goals of Vision 2030.
Khalid Al-Saif, Chairman of the Board of Directors of Al-Saif Engineering Contracting Company, said: “The building and construction services sector has a proud history of delivering complex and ambitious projects and we are pleased to welcome the Public Investment Fund as a partner to expand our business in the coming years. The investment will support the growth and development of the sector and will contribute to increasing the capabilities and local content of the sector private sector, 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.”
Fakher Al Shawaf, Chairman of Al Bawani Holding Company, said: “The partnership with the Public Investment Fund provides us with an exceptional opportunity for growth. We look forward to benefiting from the fund’s expertise to transform Al Bawani into a leading and diversified group in the region by creating the best value for our customers, investors, employees and society as a whole. The construction services sector is of great importance to the Saudi economy, and we believe that the fund’s contribution and investment in this sector will help support the realization of the ambitious Vision 2030 projects.”
Youssef Nehme Tohme, Chairman of the Board of Directors of Mabanee General Contracting Company, said: “Our vision is to build projects that contribute to the well-being of society, and we look forward to working with the Public Investment Fund to help fulfill our role in providing key projects vital to achieving Vision 2030. The Kingdom aims to increase the role of the private sector In the economy, this investment will enhance the ability of private sector companies to provide key services.
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