Saudi sovereign wealth fund acquires 25% stake in Emaar the Economic City

Saudi sovereign wealth fund acquires 25% stake in Emaar the Economic City

The Public Investment Fund (PIF), Saudi Arabia’s sovereign wealth fund and Emaar, the Economic City (EEC) announced the completion of their transaction, through which PIF will become a major shareholder in EEC with a 25 percent stake. The transaction, which was completed after obtaining required regulatory approvals, involved the novation to PIF of SAR 2.8bn ($755m) of EEC’s debt. Post the completion of the novation, PIF has become an equity investor in EEC following the issuing of new shares by debt conversion. PIF’s strategic investment will provide an opportunity to leverage synergies between EEC and PIF’s ecosystem in the real estate, manufacturing, logistics and tourism sectors, a statement said. Furthermore, the investment will aim to unlock the capabilities of non-oil sectors to enhance Saudi Arabia’s efforts to diversify revenue sources, create strategic and operational value, improve the primary infrastructure, and support economic development, the statement added. 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.” “We welcome the Public Investment Fund as a