Saudi Arabia’s PIF could see big profit on Uber stake, Future Investment Initiative forum hears

Uber may put forth an initial public offering early next year that values the ride-hailing business at as much as $120 billion, according to a media report. (AP)
Updated 23 October 2018

Saudi Arabia’s PIF could see big profit on Uber stake, Future Investment Initiative forum hears

  • Lubna Olayan, head of the Olayan Group conglomerate, highlighted a potential doubling in the value of PIF’s stake in Uber
  • Saudi Arabian sovereign wealth fund is potentially looking at a windfall profit on its investment in Uber Technologies

RIYADH: The Public Investment Fund (PIF), the Saudi Arabian sovereign wealth fund, is potentially looking at a windfall profit on its investment in Uber Technologies, the American ride-hailing company, it emerged at the Future Investment Initiative in Riyadh.
Lubna Olayan, head of the Olayan Group conglomerate, highlighted a potential doubling in the value of PIF’s stake in Uber if the San Francisco firm goes ahead with an initial public offering next year.
Speaking on a panel entitled “Can global investment inspire a collective vision of the future,” she remarked that PIF first invested $3.5 billion in Uber in 2016 when it was valued at approximately $60 billion.
“Now the forecast valuations for the IPO are around $120 billion. Congratulations,” she said to Yasir Al-Rumayyan, managing director of PIF.
Al-Rumayyan replied: “Uber is creating lots of jobs in Saudi Arabia and making life easier for drivers, customers and shareholders.”
PIF’s profit on any Uber IPO could be even bigger, because the Saudi organization is a major investor in the SoftBank Vision Fund, which is also holds a sizeable chunk of Uber shares from a later round of fundraising.
Al-Rumayyan told the forum that PIF’s holdings are on track to be valued at $400 billion by 2020, and $2 trillion by 2030. By then, he said, PIF’s portfolio would be split 50-50 between domestic and global investments. About 10 percent of PIF’s funds are currently invested outside Saudi Arabia.
Al-Rumayyan said it was not true that all of PIF’s investments went into high-tech assets, pointing to its 50 percent stake of a $40 billion infrastructure fund in partnership with US group Blackstone, and the hotel chain Accor.
In Saudi Arabia, PIF wants to broaden its investment in the economy, especially in the tourism and entertainment sectors. “We did not have these interests before and we want to enhance these sectors,” Al-Rumayyan said.


Saudi finance ministry hosts foreign investors ahead of budget 

Updated 09 December 2019

Saudi finance ministry hosts foreign investors ahead of budget 

  • Twenty two international investment companies are being shown around some of the Kingdom’s top non-oil based companies
  • Saudi banks such as SAAB, Samba, NCB, Bank AlJazira and Alinma Bank are also in attendance

RIYADH: Saudi Arabia’s Ministry of Finance has kicked off a tour for foreign investors in Riyadh today ahead of the 2020 Budget Forum on Dec. 10.
Twenty two international investment companies from Taiwan, the US, the UK, Malaysia, Indonesia, Japan, Hong Kong, Germany and France have been invited to visit some of the Kingdom’s top non-oil based companies.
The group includes a number of international investment companies, insurers and asset managers, including Goldman Sachs, Mayfair Bank, Etiqa Insurance and Nippon Life Insurance Company among others.
Saudi banks such as SAAB, Samba, NCB, Bank AlJazira and Alinma Bank are also in attendance.
Among the sites visited by the delegation are the Riyadh Metro, where the group got a glimpse of the bus and train systems that are due to launch mid-2020. 
The tour also takes in Al-Turaif UNESCO heritage site, and Qiddiya, the entertainment mega project under development in Riyadh.