PIF to invest SAR 5 bln in 4 national companies in Saudi construction sector

Logo of Public Investment Fund (PIF)

The Public Investment Fund (PIF) announced today, Feb. 14, an investment SAR 5 billion by way of subscribing to new shares as part of the capital increases representing significant minority stakes, in four leading local construction companies: Nesma & Partners Contracting Co., ElSeif Engineering Contracting Co., AlBawani Holding Co., and Almabani General Contractors Co.

In an emailed statement to Argaam, the PIF said the investment will contribute to enabling the construction services sector and improving local supply chains for current and future projects in Saudi Arabia as part of further developing the country’s construction ecosystem.

The investments will help increase private sector local content, contribute to growing Saudi Arabia’s gross domestic product (GDP), enhance supply chains and increase the construction services sector’s competitiveness.

Additionally, PIF’s investment aims to unlock the sector’s capabilities by scaling up capacity, expanding capabilities as well as creating investment opportunities for the local private sector in current and future projects.

Leveraging its global reach, PIF will enable the four companies to develop regional and international partnerships, which will help increase the adoption of the latest technologies and the transfer of knowledge from global EPC (engineering, procurement, and construction) companies.

“These partnerships demonstrate PIF’s commitment to unlock the capabilities of key strategic sectors in Saudi Arabia, including the construction & building components and services sector, which has been identified as one of 13 strategic sectors locally,” Yazeed Al-Humied, Deputy Governor and Head of MENA Investments at PIF, said.

The PIF’s investment in four national champions will support local capacity expansion across the sector and stimulate private sector participation and investment to meet current and future demand, in line with Vision 2030, he added.

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