(MENAFN– Asdaf News) Riyadh -Asdaf News
The Public Investment Fund (“PIF” or the“Fund”) today announced an investment reaching USD 1.3 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 Company, ElSeif Engineering Contracting Company, AlBawani Holding Company, and Almabani General Contractors Company. 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 four companies in which PIF has invested have built a successful track record in executing and managing complex large-scale projects across multiple sectors in various regions of Saudi Arabia. The companies’ partnerships with PIF will support the regional and international expansion of their operations and businesses.
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.
Yazeed A. Al-Humied, Deputy Governor and Head of MENA Investments at PIF, said : “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.
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.”
Abdulaziz Al Turki, Chairman of Nesma & Partners Contracting Company, said:“As a leading sustainable Saudi company operating for over 40 years in harmony with our local society and environment, we are seeking to maintain the highest global standards to positively contribute to the Saudi economy. We welcome the partnership with PIF and are proud to be working together to help deliver the development and diversification goals of the local economy. We believe that this partnership will strengthen our position as one of the leading construction companies in Saudi Arabia, and will empower us to contribute towards achieving the Vision 2030 objectives.”
Khaled El Seif, Chairman of El Seif Engineering Contracting Company, said:“The building and construction services sector has a proud history of delivering complex, ambitious projects and we are delighted to welcome PIF as a partner to expand our work in the coming years. The investment will support the growth and development of the sector and will contribute to scaling up capacity and private sector local content, 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 AlShawaf, Chairman of AlBawani Holding Company, said : “The partnership with PIF presents us with an exceptional opportunity for growth. We look forward to drawing on the Fund’s expertise to transform AlBawani into a leading diversified group in the region by creating the best value for our clients, investors, employees and the society at large. The Construction services sector is of significant importance to the Saudi economy, and we believe that PIF’s contribution and investment into this sector will help support the realization of Vision 2030’s ambitious projects.”
Youssef Nehme Tohme, Chairman of Almabani General Contractors Company, said:“Our vision is to build projects that contribute to the welfare of society, and we look forward to working with PIF to help play our part in delivering key projects vital to the realization of Vision 2030. The Kingdom aims to increase the role of the private sector within the economy, and this investment will enhance the ability of private sector firms to provide key services.”
Tags#albawani holding company #almabani general contractors company #elseif engineering contracting company #nesma & partners contracting company #pif #vision 2030 23 mins ago 860 2 minutes read