Saudi Arabia's sovereign wealth fund acquired a 25 per cent stake in Emaar The Economic City (EEC) to become a major shareholder in the company, it said on Monday.
As part of the deal, EEC issued new shares to Public Investment Fund through a 2.8 billion Saudi riyals ($755 million) debt conversion, the fund said in a statement.
The transaction, which has secured all regulatory approvals, will help both companies "leverage synergies between EEC and PIF" and further develop King Abdullah Economic City (KAEC), Saudi Arabia's multifaceted industrial zone overlooking the Red Sea.
KAEC was launched more than a decade ago, as part of the kingdom's wider economic national transformation programme that seeks to wean the country off oil and cultivate a non-oil economy that caters to the pharmaceutical, automotive and manufacturing industries. KAEC also includes the King Abdullah Port, among the world’s 100 largest ports and second biggest on the Red Sea.
The deal "has the potential not only to be a win-win for PIF and EEC but also to deliver wider benefits for the broader Saudi economy in line with the aims set out in Saudi Vision 2030", said Aiman AlMudaifer, head of PIF’s Local Real Estate Division.
“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.”
The PIF lies at the centre of the kingdom's Vision 2030 plan, which seeks to diversify the Arab world's largest economy and reduce its reliance on oil. While the fund has actively invested in global companies, it has also supported the local non-oil sectors such as the real estate industry.
Earlier this year, PIF said it will invest a minimum of $40bn a year into the domestic economy until 2025, helping to contribute $320bn to the kingdom's non-oil economy.
The fund will focus on 13 new sectors including healthcare, renewables, telecoms, media and technology, food and agriculture, automotive, transportation and logistics, real estate, aerospace and defence, construction, and building components and services as part of the new strategy.
PIF also plans to create 1.8 million direct and indirect jobs over the next five years through its investments.
The fund's latest investment in EEC will "accelerate its role as a socio-economic development platform in Saudi Arabia and will enable it to contribute its share to the goals and objectives of vision 2030", said Cyril Piaia, chief executive of Emaar The Economic City.
EEC is linked to Dubai property developer Emaar and is responsible for developing KAEC.
Europe wide
Some of French groups are threatening Friday to continue their journey to Brussels, the capital of Belgium and the European Union, and to meet up with drivers from other countries on Monday.
Belgian authorities joined French police in banning the threatened blockade. A similar lorry cavalcade was planned for Friday in Vienna but cancelled after authorities prohibited it.
UAE currency: the story behind the money in your pockets
What vitamins do we know are beneficial for living in the UAE
Vitamin D: Highly relevant in the UAE due to limited sun exposure; supports bone health, immunity and mood.
Vitamin B12: Important for nerve health and energy production, especially for vegetarians, vegans and individuals with absorption issues.
Iron: Useful only when deficiency or anaemia is confirmed; helps reduce fatigue and support immunity.
Omega-3 (EPA/DHA): Supports heart health and reduces inflammation, especially for those who consume little fish.
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The five pillars of Islam
1. Fasting
2. Prayer
3. Hajj
4. Shahada
5. Zakat
Milestones on the road to union
1970
October 26: Bahrain withdraws from a proposal to create a federation of nine with the seven Trucial States and Qatar.
December: Ahmed Al Suwaidi visits New York to discuss potential UN membership.
1971
March 1: Alex Douglas Hume, Conservative foreign secretary confirms that Britain will leave the Gulf and “strongly supports” the creation of a Union of Arab Emirates.
July 12: Historic meeting at which Sheikh Zayed and Sheikh Rashid make a binding agreement to create what will become the UAE.
July 18: It is announced that the UAE will be formed from six emirates, with a proposed constitution signed. RAK is not yet part of the agreement.
August 6: The fifth anniversary of Sheikh Zayed becoming Ruler of Abu Dhabi, with official celebrations deferred until later in the year.
August 15: Bahrain becomes independent.
September 3: Qatar becomes independent.
November 23-25: Meeting with Sheikh Zayed and Sheikh Rashid and senior British officials to fix December 2 as date of creation of the UAE.
November 29: At 5.30pm Iranian forces seize the Greater and Lesser Tunbs by force.
November 30: Despite a power sharing agreement, Tehran takes full control of Abu Musa.
November 31: UK officials visit all six participating Emirates to formally end the Trucial States treaties
December 2: 11am, Dubai. New Supreme Council formally elects Sheikh Zayed as President. Treaty of Friendship signed with the UK. 11.30am. Flag raising ceremony at Union House and Al Manhal Palace in Abu Dhabi witnessed by Sheikh Khalifa, then Crown Prince of Abu Dhabi.
December 6: Arab League formally admits the UAE. The first British Ambassador presents his credentials to Sheikh Zayed.
December 9: UAE joins the United Nations.
