DUBAI: The Public Investment Fund (PIF), Saudi Arabia’s sovereign wealth fund, said on Monday it has completed a deal with the Emaar’s The Economic City (EEC) that will make it a major shareholder in the company with 25 percent stake.
Under the deal, EEC transferred part of its loan – worth SAR2.8 billion ($755 million)- from the Ministry of Finance to the PIF in exchange for company shares.
PIF said its strategic investment will “provide an opportunity to leverage synergies between EEC and PIF’s ecosystem” in the real estate, manufacturing, logistics and tourism sectors.
“PIF 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,” PIF said in a statement.
Aiman AlMudaifer, Head of PIF’s Local Real Estate Division, said, “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.”
PIF said the deal was in sync with its plans to invest in non-oil sectors, as part of the kingdom’s plans to diversify sources of revenue.