PIF investments in MENA to accelerate domestic opportunities

Global Insights
08 December 2022 Riyadh, KSA
  • PIF-established MENA-focused companies to bolster attractive financial returns over the long term
  • “This also enables our national private sector to benefit,” says Muteb Alshathri, Head of PIF’s Securities Investments Private Equity Section
  • Investments align with the PIF Program 2021-2025 aim to establish robust economic partnerships
The Middle East and North Africa (MENA) has seen a rise in economic growth in recent years, with business-friendly reforms playing an important role. And in line with Saudi Arabia’s vision to invest locally and internationally, PIF sees strong opportunities for entering markets within the region. 
To that end, PIF announced the establishment of five companies aimed at investing in the Kingdom of Bahrain, the Republic of Iraq, the Hashemite Kingdom of Jordan, the Sultanate of Oman, and the Republic of Sudan. The announcement was made during the sixth edition of the Future Investment Initiative, which took place in Riyadh in October. 
The launch of these five new companies will contribute to an increase in regional investment opportunities for PIF’s portfolio companies and create a more resilient domestic economy. “These companies will also support long-term economic and strategic partnerships in Saudi Arabia’s private sector,” Muteb Alshathri, Head of Securities Investments Private Equity Section, Securities Investments at PIF, told PIF Global Insights.
The announcement followed the launch of the Saudi Egyptian Investment Company (SEIC), a wholly owned PIF subsidiary, in August. The six companies aim to invest a total of up to SAR 90 billion (USD 24 billion) in a variety of key sectors in each market, ranging from infrastructure and real estate development to telecommunications and technology.
“PIF deploys investments with long-term financial returns, while providing economic value in each market to enhance economic integration between Saudi Arabia and the MENA,” said Alshathri. “This also enables our national private sector to benefit from investment opportunities and strengthen business partnerships across the region.” 
Aligning with Vision 2030’s goal of diversifying Saudi Arabia’s economy, the investments support the PIF Strategy 2021-2025, which seeks to establish robust economic partnerships to achieve sustainable returns and deepen the Fund’s impact well beyond Saudi borders, too. 
“There is no doubt that each of these six countries have their own competitive advantage – and PIF will focus its investments on enhancing them,” said Alshathri. “Investing in a country like Sudan will be completely different from investing in Bahrain, for example. Each country will have its own investment strategy.”