DUBAI: The Public Investment Fund has completed the acquisition of Emaar’s The Economic City, it said in a statement.
Under the investment deal, the sovereign wealth fund becomes a major shareholder in the company with a 25 percent stake.
Emaar EC transferred part of its loan - worth SR2.8 billion - from the Ministry of Finance to the PIF in exchange for company shares.
The deal will “provide an opportunity to leverage synergies between EEC and PIF’s ecosystem in the real estate, manufacturing, logistics, and tourism sectors,” the fund said in a statement.
“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,” Aiman Al-Mudaifer, head of PIF’s local real estate division said.
It is also in line with PIF’s goal to invest in the non-oil sectors, as part of the Kingdom’s wider push to diversify its income sources.
Three members of the Economic City's board of directors resigned following the deal, including the managing director Ahmed Boshnak, Falih Hajaj, and Bader Ali Riza.
Joining the board are PIF executive Assim Alsuhaibani, Majed Alsorou, and Qusai Al Fakhri, the Saudi Exchange reported.