Saudi Arabia's sovereign wealth fund bought a stake in Italian luxury car maker Pagani, which makes some of the most expensive supercars in the world and counts Mark Zuckerberg and Lionel Messi among its list of high-profile clients.
The Public Investment Fund will become a minority shareholder in Pagani upon completion of the deal, which remains subject to customary conditions, the company said on Thursday. Financial details of the deal were not disclosed.
As part of the long-term strategic partnership that will help Pagani in the next chapter of its growth plan, the PIF becomes a stakeholder alongside existing minority shareholders Nicola Volpi and Emilio Petrone, the company said.
Mark Zuckerberg reportedly bought a Pagani Huayra for $1.4m in 2014
The Pagani family, which founded the company in 1992, will remain majority shareholder, while Horacio Pagani, founder, chief executive and chief design officer, retains his leadership position.
"We are proud to announce an important partnership with PIF, a key step in our long-term growth strategy, which envisages significant investments to ensure that our next hypercars will keep conveying unique emotions, irrespective of their powertrain technology," Mr Pagani said.
"PIF represents the ideal partner to further consolidate Pagani positioning as a brand in the hypercars segment as well as to support its expansion strategy in the lifestyle segment."
The sovereign wealth fund is a central plank of Saudi Arabia's Vision 2030 plan that seeks to diversify the Arab world's largest economy and reduce its reliance on oil. The fund's investments in US publicly listed companies were valued at $15.94 billion at the end of the second quarter of this year. Under a five-year strategy that was announced in January, the fund aims to more than double the value of its assets under management to $1.07 trillion and commit $40bn annually to develop the kingdom's economy.
In 2018, Pagani which is based near Modena, Italy stunned car enthusiasts with its Pagani Zonda HP Barchetta that came with a $17.5 million price tag and dubbed it the world's most expensive sports car that year.
In addition to variations of its Pagani Huayra, which starts at list price of $2m, the company also creates special and one-off editions. Mr Zuckerberg reportedly bought a Pagani Huayra for $1.4m in 2014 before its price increased.
UBS Investment Bank acted as financial adviser to Pagani, while Withers Studio Legale was legal adviser to the selling shareholders. Rothschild & Co and Freshfields Bruckhaus Deringer acted as PIF’s financial and legal adviser.
Company%20Profile
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The specs
Engine: 3.8-litre, twin-turbo V8
Transmission: seven-speed automatic
Power: 592bhp
Torque: 620Nm
Price: Dh980,000
On sale: now
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
