Saudi’s PIF in talks to make strategic investment in major construction firms

Rothschild and GIB Capital have been appointed as advisers

Saudi Arabia’s Public Investment Fund (PIF) is in talks with four of the Kingdom’s leading construction firms, eyeing a minority stake of around 30% in them or their subsidiaries.

According to a Bloomberg report, PIF is in talks with Nesma Holding, El Seif Group, Almabani General Contractors and Albawani and could potentially be investing hundreds of millions of dollars via a strategic stake in each.

PIF has hired Rothschild and GIB Capital as advisers, stated the report, citing the sources. The move is said to comes in line with PIF’s five-year strategy – unveiled last year by its Chairman HRH Prince Mohammed bin Salman bin Abdulaziz, Crown Prince, Deputy Prime Minister and Chairman of the Council of Economic Affairs and Development – that aims to increase the size of its assets to $1.06tn, in addition to creating 1.8mn jobs directly and indirectly by the end of 2025.

In February, HRH Prince Mohammed announced the transfer of 4% of Aramco shares to the PIF. The transfer, he stated, was part of the Kingdom’s long-term strategy to support the restructuring of its economy, in line with Vision 2030 and its five-year strategy.

The Crown Prince said that the new year strategy represented a major pillar in achieving the aspirations of the country towards economic growth, upgrading the quality of life, and achieving the concept of comprehensive and sustainable development in various traditional and modern sectors.


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