PIF initiatives empower the private sector to build new industries

Global Insights
09 July 2024 Riyadh, KSA
PIF initiatives empower the private sector to build new industries
  • PIF Private Sector Hub shares opportunities from across PIF and its portfolio companies
  • Portal highlights the Fund’s role in developing integrated ecosystems
  • “PIF is the enabler” of the private sector, says Peter Schiefer, Chairman and owner of tower crane company WOLFFKRAN 

The huge scale of Saudi Arabia’s ambition is perhaps best showcased by PIF’s giga-projects and other real estate projects taking place across the country. The Fund is focusing on integrating these new urban communities and destinations by localizing knowledge and technology. Consequently, the private sector – both locally and internationally – is proving key to the success of these large-scale projects, and their long-term returns. 

 

It’s why PIF launched a number of initiatives to empower the private sector, including the Private Sector Hub, a platform specifically aimed at offering a direct channel for supplier and investment opportunities with the private sector. Companies from around the globe are able to access the dedicated portal, and WOLFFKRAN, the oldest tower crane business in the world, is one of its success stories.

 

With plenty of experience in Saudi Arabia, including a key role in the expansion of the religious sites in Mecca and Medina as well as the construction of Princess Nora bint Abdul Rahman University in Riyadh, among others, WOLFFKRAN was one of the first international companies to utilize the Private Sector Hub.

 

Saudi Arabia offers a very attractive growing market, notes Peter Schiefer, Chairman and owner of WOLFFKRAN. “We believe we’re going to see a lot of activity over the next decade,” he said.

 

Through PIF’s Private Sector Hub, WOLFFKRAN explored opportunities and received advice on how best to expand in the Saudi market, from financing to company structuring. As a result, WOLFFKRAN formed a joint venture with Zamil Group, one of the largest investment holding companies in Saudi Arabia, in February 2024. 

 

The aim of the collaboration is to open a crane production facility in Saudi Arabia and to build up a rental fleet of 300 cranes. The production facility will be the first tower crane manufacturing plant in the Middle East and will supply cranes not only to the Saudi Arabian market, but to the entire MENA region.

 

“PIF is the enabler,” said Schiefer. “Companies like us, like our partner, we’re going to make it happen, but you need that enabler who is paving the way and clearing any obstacles you might face.”

 

Schiefer highlights PIF’s role in developing integrated ecosystems through its support of the private sector. “With that, it also triggers other industries to come in. All of a sudden, you have a supply industry and you have suppliers – it drives everything behind it.”