• PIF invested a total amount reaching USD 1.3 billion by way of subscribing to new shares as part of the capital increases in each of Nesma & Partners Contracting Company, ElSeif Engineering Contracting Company, AlBawani Holding Company, and Almabani General Contractors Company
  • The investment will enable the construction services sector to scale up capacity, expand capabilities, stimulate growth, drive the adoption of advanced technologies and improve local supply chains for current and future projects in Saudi Arabia
  • The transactions are part of PIF’s strategy to support and enable key strategic sectors in Saudi Arabia, in line with Vision 2030

Riyadh, Saudi Arabia – The Public Investment Fund (“PIF” or the “Fund”) today announced an investment reaching USD 1.3 billion by way of subscribing to new shares as part of the capital increases representing significant minority stakes, in four leading local construction companies: Nesma & Partners Contracting Company, ElSeif Engineering Contracting Company, AlBawani Holding Company, and Almabani General Contractors Company. The investment will contribute to enabling the construction services sector and improving local supply chains for current and future projects in Saudi Arabia as part of further developing the country’s construction ecosystem.

The four companies in which PIF has invested have built a successful track record in executing and managing complex large-scale projects across multiple sectors in various regions of Saudi Arabia. The companies’ partnerships with PIF will support the regional and international expansion of their operations and businesses.

The investments will help increase private sector local content, contribute to growing Saudi Arabia’s gross domestic product (GDP), enhance supply chains and increase the construction services sector’s competitiveness. Additionally, PIF’s investment aims to unlock the sector’s capabilities by scaling up capacity, expanding capabilities as well as creating investment opportunities for the local private sector in current and future projects. Leveraging its global reach, PIF will enable the four companies to develop regional and international partnerships, which will help increase the adoption of the latest technologies and the transfer of knowledge from global EPC (engineering, procurement, and construction) companies.

Yazeed A. Al-Humied, Deputy Governor and Head of MENA Investments at PIF, said: “These partnerships demonstrate PIF’s commitment to unlock the capabilities of key strategic sectors in Saudi Arabia, including the Construction & Building Components and Services sector, which has been identified as one of 13 strategic sectors locally.

‘’PIF’s investment in four national champions will support local capacity expansion across the sector and stimulate private sector participation and investment to meet current and future demand, in line with Vision 2030.”

Abdulaziz Al Turki, Chairman of Nesma & Partners Contracting Company, said: “As a leading sustainable Saudi company operating for over 40 years in harmony with our local society and environment, we are seeking to maintain the highest global standards to positively contribute to the Saudi economy. We welcome the partnership with PIF and are proud to be working together to help deliver the development and diversification goals of the local economy. We believe that this partnership will strengthen our position as one of the leading construction companies in Saudi Arabia, and will empower us to contribute towards achieving the Vision 2030 objectives.”

Khaled El Seif, Chairman of El Seif Engineering Contracting Company, said: “The building and construction services sector has a proud history of delivering complex, ambitious projects and we are delighted to welcome PIF as a partner to expand our work in the coming years. The investment will support the growth and development of the sector and will contribute to scaling up capacity and private sector local content, enabling us to deliver world-leading projects in the country as we strive to become the leading player in the sectors in which we operate.”

Fakher AlShawaf, Chairman of AlBawani Holding Company, said: “The partnership with PIF presents us with an exceptional opportunity for growth. We look forward to drawing on the Fund’s expertise to transform AlBawani into a leading diversified group in the region by creating the best value for our clients, investors, employees and the society at large. The Construction services sector is of significant importance to the Saudi economy, and we believe that PIF’s contribution and investment into this sector will help support the realization of Vision 2030’s ambitious projects.”

Youssef Nehme Tohme, Chairman of Almabani General Contractors Company, said: “Our vision is to build projects that contribute to the welfare of society, and we look forward to working with PIF to help play our part in delivering key projects vital to the realization of Vision 2030. The Kingdom aims to increase the role of the private sector within the economy, and this investment will enhance the ability of private sector firms to provide key services.”

-Ends-

ABOUT PIF

The Public Investment Fund (PIF) is one of the largest and most impactful sovereign wealth funds in the world. Since 2015, when the Board was reconstituted and oversight transferred to the Council of Economic and Development Affairs, the Fund’s board of directors has been chaired by His Royal Highness Crown Prince Mohammad bin Salman bin Abdulaziz, Prime Minister, Chairman of the Council of Economic and Development Affairs, and Chairman of the Public Investment Fund. PIF a leading role in advancing Saudi Arabia’s economic transformation and diversification, as well as contributing to shaping the future of the global economy. Since 2017, PIF has established 71 companies and created, directly and indirectly, more than 500,000 jobs as at the end of 2021.

PIF is building a diversified portfolio by entering into attractive and long-term investment opportunities in 13 strategic sectors in Saudi Arabia and globally. PIF's strategy, as set out in the PIF Program 2021-2025 - one of the Vision 2030 realization programs - aims to enable many promising sectors and contribute to increasing local content by creating partnerships with the private sector, in addition to injecting at least 150 billion riyals annually into the local economy. PIF works to transfer technologies and localize knowledge to build a prosperous and sustainable economy domestically. As the investment arm Saudi Arabia, PIF looks to make unique investments, and is building strategic alliances and partnerships with prestigious international institutions and organizations, which contribute to achieving real long-term value for Saudi Arabia, in line with the objectives of Vision 2030. PIF has also created an operational governance model that reflects its main tasks and objectives, in line with best international practices. Applying this model of governance enhances the level of transparency and effectiveness in decision-making and future progress.

More information about PIF can be found at: www.pif.gov.sa    
Media Contact: media@pif.gov.sa   

About Nesma & Partners Contracting Company Ltd.

Established in 1981, Nesma & Partners is a leading contractor in Saudi Arabia offering full-fledged services in industrial, oil and gas, civil and buildings, infrastructure, and electro-mechanical sectors. Through our services and strategic partnerships with local stakeholders, we serve these key industries to build sustainable mega projects that power Vision 2030 and shape a brighter future for our people.

For the last 40 years, we established a track record of success in delivering some of the country’s most significant industrial and infrastructure projects for a wide range of clients in the public and private sectors, including Saudi Aramco, the Public Investment Fund, NEOM, Red Sea, Diriyah Gate Development Authority (DGDA), General Authority of Civil Aviation (GACA), Ministry of the National Guard, Royal Commission, and the Ministry of Defense. With a reputation for safety, quality, and timely project delivery, we have been at the forefront of creating job opportunities and are proud of our over 30,000 employees.

Website https://www.nesmapartners.com/
To connect with us Communications@nesmapartners.com

About El Seif Engineering Contracting Company

El Seif Engineering Contracting Company was established in 1975 and since then, has become one of the leading contractors in the Kingdom and the Middle East with a diverse, rich heritage of strategic and iconic projects in the civil & infrastructure, entertainment & tourism, residential, commercial & high rise, military, education, healthcare, and transportation sectors. The company is a provider of world-class engineering and construction and is heavily invested in digital technologies.

More information about us can be found at: https://www.el-seif.com.sa/
Media Contact: info@el-seif.com.sa

About AlBawani Holding Company (ABH)

Al Bawani Holding is a diversified group of Saudi companies. Established in 1991, the past three decades have seen our business grow from a modest civil-works firm into a fully fledged holding corporation with a sizable portfolio in many sectors, strong financial position, and a significant presence in a broad range of industries. Indeed, our construction division is now among the five largest operators in the country. What’s more, our unwavering focus on excellence has earned us a Class-1 business ranking in Saudi Arabia.

To date, we have completed over 260 projects, building long-term partnerships and earning the trust and loyalty of our clients in the process. Furthermore, we currently have over SAR 12 billion worth of ongoing projects. These are being serviced by our 17,000-strong workforce, each of whom is a specialist in their respective fields.

The group has bolstered its reputation by adhering to international standards and developing rigorous quality management systems in its business sectors. We have also established rigorous procedures to ensure the safety of our personnel – as a result, errors are minimized, and projects are delivered on time and within budget.

Ultimately we meet, then exceed, our clients’ expectations. The success of the business is further underpinned by our worldclass engineering, administrative, and technical teams who utilize cuttingedge technology, equipment, and integrated support services. We are now investing in the future so that we can introduce the latest technology and knowledge to the Kingdom. This will allow us to harmonize with the objectives of Vision 2030: a striving economy, a vibrant society, and an ambitious nation.

Our business covers wide range of sectors including general contracting, water, power, security, real estate development, facility management, light industries, operation & maintenance and technology

More information about us can be found at: https://www.albawani.net/
Media Contact: info@albawani.net

About Almabani

Almabani is a tier 1 class a engineering procurement and construction company with a rich history that spans over 50 years in the industry. Almabani has been constantly keeping up to date with the latest technology and innovations to provide our clients with the latest solutions

More information about us can be found at: https://www.almabani.com/contact-us
Media Contact:  info@almabani.com