The Riyadh skyline. Saudi Arabia is focused on diversifying its economy away from oil. Reuters
The Riyadh skyline. Saudi Arabia is focused on diversifying its economy away from oil. Reuters
The Riyadh skyline. Saudi Arabia is focused on diversifying its economy away from oil. Reuters
The Riyadh skyline. Saudi Arabia is focused on diversifying its economy away from oil. Reuters

Saudi Arabia’s PIF open to more joint ventures with foreign partners


  • English
  • Arabic

Saudi Arabia’s Public Investment Fund is open to entering into more joint ventures with foreign companies looking to invest in the kingdom, an executive from the wealth fund has said.

This week, the PIF and South Korea’s Hyundai agreed to jointly build a car manufacturing plant in Saudi Arabia, with an estimated investment of more than $500 million.

“One of the main advantages of these kinds of joint venture partnerships is to localise the technical know-how, and this is one of the main things that we need to do,” said Abdulmajeed Alhagbani, head of Mena securities investments at the PIF.

“[South] Korea is … a major G20 country and, going forward, we are open to having this kind of exchange with all the countries,” he told The National on the sidelines of the Future Investment Initiative in Riyadh.

Abdulmajeed Alhagbani, head of Mena securities investments at Public Investment Fund Source: PIF
Abdulmajeed Alhagbani, head of Mena securities investments at Public Investment Fund Source: PIF

The PIF will hold a 70 per cent stake in the joint venture with Hyundai, which will own the remaining stake.

The plant, scheduled to begin production in 2026, aims to manufacture 50,000 vehicles a year, including internal combustion engine and electric-powered vehicles.

Saudi Arabia, the Arab world's largest economy, is focused on building its domestic EV market as part of its Vision 2030 strategy to diversify its economy away from oil.

The PIF has also formed a joint venture with Italian company Pirelli to build a tyre plant in the kingdom, with an estimated investment of about $550 million.

The wealth fund has listed several companies from its portfolio in recent years, driven by strong investor appetite.

Shares of Ades Holding, an oil and gas drilling company backed by the PIF, surged 30 per cent on its first day of trading on October 11 after raising $1.22 billion in an initial public offering last month.

“We [have] 'IPO-ed' in market cap more than 115 billion Saudi riyals ($30.66 billion),” Mr Alhagbani said.

Having currencies pegged to the US dollar is an “extreme advantage” for the GCC region because investors are looking for dollar-backed investments amid high interest rates, he said.

The US Dollar Index – a measure of the value of the greenback against a weighted basket of major currencies – has grown by more than 13 per cent over the past three years as geopolitical uncertainty drives investors to safe-haven assets.

Globally, in the first nine months, 968 IPOs raised $101.2 billion, a 5 per cent and 32 per cent decrease year on year, respectively, according to consultancy EY.

In the Europe, Middle East, India and Africa region, 286 IPOs raised $21.9 billion in the third quarter, an increase of 2 per cent in volume but a 44 per cent reduction in proceeds.

In the Mena region, the growth in listings is being driven by Saudi Arabia and the UAE, the top regional economies, EY said in an earlier report.

The PIF aims to double the size of its assets to $1 trillion by 2025 as it continues to increase investments to support the growth of Saudi Arabia's economy.

Responding to a query about geopolitical and economic challenges, Mr Alhagbani said that investors, in general, needed to focus on the long term.

“As part of the investing timeline, there are hiccups and there is peace and [economic] bottoms,” Mr Alhagbani said.

“We actually see these … economic factors that may impact our investment, but we take the right decisions [and] on [a] long term basis.”

  • Saudi Crown Prince Mohammed bin Salman is overseeing the kingdom's Vision 2030 economic reform agenda. Reuters
    Saudi Crown Prince Mohammed bin Salman is overseeing the kingdom's Vision 2030 economic reform agenda. Reuters
  • Riyadh will be ready to welcome 120 million visitors if the Saudi capital is chosen to host Expo 2030, say officials. Bloomberg
    Riyadh will be ready to welcome 120 million visitors if the Saudi capital is chosen to host Expo 2030, say officials. Bloomberg
  • The Saudi capital is competing with Busan, Odesa, and Rome to host the world fair in 2030. Reuters
    The Saudi capital is competing with Busan, Odesa, and Rome to host the world fair in 2030. Reuters
  • Guests arrive at the Grand Palais Ephemere for the Riyadh 2030 reception event to promote the city's candidacy for Expo 2030, in Paris. AFP
    Guests arrive at the Grand Palais Ephemere for the Riyadh 2030 reception event to promote the city's candidacy for Expo 2030, in Paris. AFP
  • Saudi Minister of Tourism Ahmed Al Khateeb with Eva Descarrega, permanent delegate for Andorra to UN cultural agency Unesco.
    Saudi Minister of Tourism Ahmed Al Khateeb with Eva Descarrega, permanent delegate for Andorra to UN cultural agency Unesco.
  • Officials from the Bureau International des Expositions, which oversees the World Expo, with Jerry Inzerillo, chief executive of Diriyah Gate Development Authority, near Riyadh.
    Officials from the Bureau International des Expositions, which oversees the World Expo, with Jerry Inzerillo, chief executive of Diriyah Gate Development Authority, near Riyadh.
  • Saudi Arabia has outlined ambitious plans to develop the capital, including the flagship New Murabba project. SPA
    Saudi Arabia has outlined ambitious plans to develop the capital, including the flagship New Murabba project. SPA
  • The project will cover 19 square kilometres, centred on a large cube-shaped structure, rendered above, known as the Mukaab.
    The project will cover 19 square kilometres, centred on a large cube-shaped structure, rendered above, known as the Mukaab.
  • The New Murabba Development Company's project will include a museum, a technology and design university, a multipurpose immersive theatre and more than 80 cultural and entertainment venues.
    The New Murabba Development Company's project will include a museum, a technology and design university, a multipurpose immersive theatre and more than 80 cultural and entertainment venues.
  • The historic Al Masmak fort in Riyadh is one of the city's current tourist attractions and home to a museum. Getty
    The historic Al Masmak fort in Riyadh is one of the city's current tourist attractions and home to a museum. Getty
  • Work by Saudi artist Ali Al Ruzaiza projected on Masmak Fort during the Noor Riyadh festival. Photo: Noor Riyadh
    Work by Saudi artist Ali Al Ruzaiza projected on Masmak Fort during the Noor Riyadh festival. Photo: Noor Riyadh
  • Football legend Lionel Messi and his wife Antonela Roccuzzo visiting Diriyah in May. AFP
    Football legend Lionel Messi and his wife Antonela Roccuzzo visiting Diriyah in May. AFP
  • The kingdom recently launched a new carrier, Riyadh Air. Photo: Riyadh Air
    The kingdom recently launched a new carrier, Riyadh Air. Photo: Riyadh Air
COMPANY%20PROFILE
%3Cp%3E%3Cstrong%3ECompany%20name%3A%3C%2Fstrong%3E%20Mozn%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStarted%3A%3C%2Fstrong%3E%202017%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EFounders%3A%3C%2Fstrong%3E%20Mohammed%20Alhussein%2C%20Khaled%20Al%20Ghoneim%2C%20Abdullah%20Alsaeed%20and%20Malik%20Alyousef%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Riyadh%2C%20Saudi%20Arabia%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EIndustry%3A%3C%2Fstrong%3E%20FinTech%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EFunding%3A%3C%2Fstrong%3E%20%2410%20million%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EInvestors%3A%3C%2Fstrong%3E%20Raed%20Ventures%2C%20Shorooq%20Partners%2C%20VentureSouq%2C%20Sukna%20Ventures%20and%20others%3C%2Fp%3E%0A
Some of Darwish's last words

"They see their tomorrows slipping out of their reach. And though it seems to them that everything outside this reality is heaven, yet they do not want to go to that heaven. They stay, because they are afflicted with hope." - Mahmoud Darwish, to attendees of the Palestine Festival of Literature, 2008

His life in brief: Born in a village near Galilee, he lived in exile for most of his life and started writing poetry after high school. He was arrested several times by Israel for what were deemed to be inciteful poems. Most of his work focused on the love and yearning for his homeland, and he was regarded the Palestinian poet of resistance. Over the course of his life, he published more than 30 poetry collections and books of prose, with his work translated into more than 20 languages. Many of his poems were set to music by Arab composers, most significantly Marcel Khalife. Darwish died on August 9, 2008 after undergoing heart surgery in the United States. He was later buried in Ramallah where a shrine was erected in his honour.

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

Conflict, drought, famine

Estimates of the number of deaths caused by the famine range from 400,000 to 1 million, according to a document prepared for the UK House of Lords in 2024.
It has been claimed that the policies of the Ethiopian government, which took control after deposing Emperor Haile Selassie in a military-led revolution in 1974, contributed to the scale of the famine.
Dr Miriam Bradley, senior lecturer in humanitarian studies at the University of Manchester, has argued that, by the early 1980s, “several government policies combined to cause, rather than prevent, a famine which lasted from 1983 to 1985. Mengistu’s government imposed Stalinist-model agricultural policies involving forced collectivisation and villagisation [relocation of communities into planned villages].
The West became aware of the catastrophe through a series of BBC News reports by journalist Michael Buerk in October 1984 describing a “biblical famine” and containing graphic images of thousands of people, including children, facing starvation.

Band Aid

Bob Geldof, singer with the Irish rock group The Boomtown Rats, formed Band Aid in response to the horrific images shown in the news broadcasts.
With Midge Ure of the band Ultravox, he wrote the hit charity single Do They Know it’s Christmas in December 1984, featuring a string of high-profile musicians.
Following the single’s success, the idea to stage a rock concert evolved.
Live Aid was a series of simultaneous concerts that took place at Wembley Stadium in London, John F Kennedy Stadium in Philadelphia, the US, and at various other venues across the world.
The combined event was broadcast to an estimated worldwide audience of 1.5 billion.

Men from Barca's class of 99

Crystal Palace - Frank de Boer

Everton - Ronald Koeman

Manchester City - Pep Guardiola

Manchester United - Jose Mourinho

Southampton - Mauricio Pellegrino

The biog

Name: James Mullan

Nationality: Irish

Family: Wife, Pom; and daughters Kate, 18, and Ciara, 13, who attend Jumeirah English Speaking School (JESS)

Favourite book or author: “That’s a really difficult question. I’m a big fan of Donna Tartt, The Secret History. I’d recommend that, go and have a read of that.”

Dream: “It would be to continue to have fun and to work with really interesting people, which I have been very fortunate to do for a lot of my life. I just enjoy working with very smart, fun people.”

Our legal consultant

Name: Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

The five pillars of Islam

1. Fasting 

2. Prayer 

3. Hajj 

4. Shahada 

5. Zakat 

LAST-16 FIXTURES

Sunday, January 20
3pm: Jordan v Vietnam at Al Maktoum Stadium, Dubai
6pm: Thailand v China at Hazza bin Zayed Stadium, Al Ain
9pm: Iran v Oman at Mohamed bin Zayed Stadium, Abu Dhabi

Monday, January 21
3pm: Japan v Saudi Arabia at Sharjah Stadium
6pm: Australia v Uzbekistan at Khalifa bin Zayed Stadium, Al Ain
9pm: UAE v Kyrgyzstan at Zayed Sports City Stadium, Abu Dhabi

Tuesday, January 22
5pm: South Korea v Bahrain at Rashid Stadium, Dubai
8pm: Qatar v Iraq at Al Nahyan Stadium, Abu Dhabi

Avatar: Fire and Ash

Director: James Cameron

Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana

Rating: 4.5/5

MEDIEVIL%20(1998)
%3Cp%3E%3Cstrong%3EDeveloper%3A%3C%2Fstrong%3E%20SCE%20Studio%20Cambridge%3Cbr%3E%3Cstrong%3EPublisher%3A%3C%2Fstrong%3E%20Sony%20Computer%20Entertainment%3Cbr%3E%3Cstrong%3EConsole%3A%3C%2Fstrong%3E%20PlayStation%2C%20PlayStation%204%20and%205%3Cbr%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%203.5%2F5%3C%2Fp%3E%0A
The biog

Year of birth: 1988

Place of birth: Baghdad

Education: PhD student and co-researcher at Greifswald University, Germany

Hobbies: Ping Pong, swimming, reading

 

 

The specs
  • Engine: 3.9-litre twin-turbo V8
  • Power: 640hp
  • Torque: 760nm
  • On sale: 2026
  • Price: Not announced yet
Updated: October 29, 2023, 3:00 AM