International investors flock to Saudi Arabia’s expanding VC market in 2024  

Special International investors flock to Saudi Arabia’s expanding VC market in 2024  
Aligned with its economic diversification strategy, the Kingdom has prioritized startups and VC investments as pivotal components of its transformation under Vision 2030. Shutterstock
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Updated 01 January 2025
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International investors flock to Saudi Arabia’s expanding VC market in 2024  

International investors flock to Saudi Arabia’s expanding VC market in 2024  

RIYADH: Saudi Arabia’s venture capital ecosystem showed remarkable growth in 2024, driven by robust government support, an influx of international investors, and a maturing entrepreneurial scene, according to industry experts.   

Aligned with its economic diversification strategy, the Kingdom has prioritized startups and VC investments as pivotal components of its transformation under Vision 2030.   

In an interview with Arab News, Philip Bahoshy, CEO and founder of MAGNiTT, a leading regional data platform, emphasized the importance of government-backed programs in fostering this growth, ensuring the ecosystem’s continued expansion in 2025 and beyond.




Philip Bahoshy, CEO and founder of MAGNiTT. Supplied

 

“Saudi Arabia continued to develop its venture ecosystem throughout 2024. This was seen through multiple government programs and initiatives driven by the Ministry of Communications and Information Technology and the National Technology Development Program, as well as training programs and investment structures through Jada Fund of Funds and SVC,” Bahoshy said.   

He also pointed out that the data indicates Saudi Arabia’s increasing competitiveness in terms of funding, especially when compared to other regional markets.  

Mohammed Al-Zubi, founder of Nama Ventures, one of Saudi Arabia’s top early-stage VC firms, echoed these sentiments, noting the alignment between Vision 2030 and the Kingdom’s growing momentum in the sector.  

“Three key factors stood out. First, the continued support from Vision 2030 initiatives, which provided both infrastructure and funding incentives to startups and investors. Second, the influx of international investors who recognize the untapped potential in the Saudi market,” Al-Zubi told Arab News.  




Mohammed Al-Zubi, founder of Nama Ventures. Supplied

“Finally, we saw at Nama that the entrepreneurial talent pool in Saudi Arabia has grown exponentially, with founders becoming more sophisticated in their approach to building scalable businesses,” Al-Zubi added.  

A resilient VC market  

Despite global economic challenges and a slowdown in late-stage investments, Saudi Arabia’s VC market proved resilient, outpacing many developed markets.  

“2024 showcased Saudi Arabia as one of the most dynamic and interesting VC markets globally,” said Al-Zubi. 

He observed that, while global VC investments saw significant declines, Saudi Arabia experienced only a “below-average decline,” thanks to targeted initiatives aimed at building a sustainable entrepreneurial ecosystem.  

Bahoshy also noted the strength of early-stage and Series A investments, which formed the backbone of the Kingdom’s venture capital activity.  

“Venture investment in the Kingdom remained strong at early and series A investments. Late-stage investment globally and in the region has been the hardest hit by the slowdown in venture,” he explained.  

One of the standout trends in Saudi Arabia’s 2024 venture capital market was the explosive growth in early-stage investments, which, according to Al-Zubi, accounted for approximately 85 percent of all VC deals. 

He emphasized that such investments are crucial for laying a solid foundation for the ecosystem.  

Bahoshy also highlighted this trend, noting that “investor appetite at the early stage was notable, driving an increase in the total number of transactions year on year.”   

Success stories 

Saudi Arabia’s VC growth in 2024 was marked by key success stories, reflecting the strength and global appeal of the local startup ecosystem.  

Bahoshy pointed to Tabby, a buy-now-pay-later fintech unicorn, as one of the standout successes. “Now headquartered in Saudi Arabia, Tabby is preparing for its initial public offering, likely on Tadawul, though the IPO date is yet to be announced.”  

“The company reached unicorn status last year with a valuation exceeding $1.5 billion after raising $200 million in a Series D funding round. This year it continued its expansion into the Kingdom through the acquisition of Tweeq, moving beyond just BNPL but into other financial services,” he said.  

Al-Zubi pointed to Salla, an e-commerce platform backed by Nama Ventures, as another success story.  

“Salla’s journey in 2024 is a prime example of the transformative power of early-stage VC. Nama Ventures invested in Salla during its earliest stages, and the company is now on the brink of unicorn status and preparing for an IPO. This year, Salla secured a $130 million pre-IPO investment round, partnered with stc Bank, and launched the Salla Special plan to empower businesses with advanced capabilities,” Al-Zubi explained. 

Other Nama Ventures portfolio companies, such as Cargoz and Nowlun, are also leveraging opportunities in the Saudi market.  

“Beyond Salla, other Nama Ventures portfolio companies, such as Cargoz and Nowlun, are expanding their footprints into Saudi Arabia — a testament to the ecosystem’s vibrancy and the opportunities it offers for regional growth,” Al-Zubi added. 

Global engagement 

Discussing the factors driving VC investments into Saudi Arabia, Bahoshy emphasized the Kingdom’s strategic vision as a key attraction for international capital.  

“Saudi Arabia, in line with Vision 2030, continues to attract international and regional interest into the Kingdom. In 2024, we saw notable relocation of companies to the Kingdom for their headquarters as well as international VC entities from the US and Asia setting up offices in the Kingdom as they attract global capital,” he stated.   

“This has led to the support of venture investment in the Kingdom locally and attracting regional and international startups to the Kingdom,” Bahoshy said.  

This surge in international engagement was further bolstered by various government support programs.   

“This was complemented by government support programs driven by the likes of MCIT, multiple accelerator programs focused on the top of the funnel like Flat6Labs, 500 Global and Sanabil, as well as Fund of Fund programs to not only invest in the capital allocators, but also to train them through structured programs and academic efforts,” he added.  

Global events hosted in Saudi Arabia, such as the Future Investment Initiative and LEAP, played a pivotal role in boosting the Kingdom’s international profile.  

“These events have positioned Saudi Arabia as a global hub for innovation and entrepreneurship, attracting attention from leading international venture capitalists,” said Al-Zubi.    

Emerging trends 

Saudi Arabia’s VC ecosystem has expanded beyond traditional sectors like fintech and e-commerce, branching into emerging industries such as IT solutions, food and beverage, and agriculture.  

Bahoshy pointed to Intelmatix’s $20 million Series A round and AI Menu’s $10 million funding as examples of this diversification.   

“In 2024, Saudi Arabia’s VC space saw notable activity beyond the usual leading sectors of fintech, e-commerce, retail, and transport and logistics,” Bahoshy said.  

Al-Zubi noted another key trend — the rise of sector-specific funds led by seasoned entrepreneurs.   

“These individuals leveraged their expertise and capital to establish highly focused funds in areas such as fintech, health tech, and logistics,” he observed.  

He believes this trend will continue into 2025, with more seasoned founders transitioning into investors and further strengthening the ecosystem.   

2025 Outlook  

Both Bahoshy and Al-Zubi are optimistic about the future of Saudi Arabia’s VC market in 2025.  

Bahoshy highlighted IPO readiness as a critical focus for the coming year. “Much discussion and preparation have been in place to see more IPO listings in the Kingdom. This is likely to transpire in 2025; however, a lot of groundwork in preparing companies to be ‘IPO’ ready has been a catalyst to the venture market,” he said.  

Al-Zubi forecasted growth in both early- and later-stage investments. “I foresee a continued shift toward larger, later-stage investments as more startups reach maturity.”  

“Simultaneously, the emphasis on early-stage investments will grow exponentially, driven by the recognition that nurturing startups from their inception is critical to building a pipeline of scalable ventures,” he added.  

Al-Zubi also anticipates continued momentum in pre-seed and seed funding, along with mentorship initiatives aimed at supporting emerging founders.  

Bahoshy pointed to deep technology investment as another promising area. “In the ever-evolving Saudi Arabia ecosystem, it is also important to note that the foundations are being set for deep technology investment,” he said, referencing the efforts of institutions like KAUST, government programs such as MCIT, and international roadshows in regions like Singapore, South Korea, and London.  

“This is an area to watch out for heading into 2025 as the AI interest globally looks to translate to venture investment in the Kingdom,” he added. 


Rocco Forte Hotels eyes strategic locations for expansion in Saudi Arabia

Rocco Forte Hotels eyes strategic locations for expansion in Saudi Arabia
Updated 40 sec ago
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Rocco Forte Hotels eyes strategic locations for expansion in Saudi Arabia

Rocco Forte Hotels eyes strategic locations for expansion in Saudi Arabia

RIYADH: Rocco Forte Hotels is considering expansion into Saudi Arabia, eyeing potential locations along the Red Sea and in Riyadh, according to the company’s executive chairman.

In an interview with Arab News on the sidelines of the third PIF Private Sector Forum in Riyadh on Wednesday, Rocco Forte, who is also the company’s founder, confirmed that while details of the Red Sea project are still under wraps, the firm is actively evaluating opportunities in the Kingdom.

“Obviously, with PIF (Public Investment Fund) investing in us, we completed the deal last January and we’re starting to become active and looking seriously at things here (in Saudi Arabia),” Forte said.

Forte highlighted the company’s partnership with PIF, which began in 2023 and involved the acquisition of a 49 percent stake by the Saudi fund.

The luxury hotel group, renowned for its properties typically ranging from 80 to 120 rooms, is targeting strategic locations in the Kingdom that align with its brand values.  

“For example, Diriyah would be an ideal place for us, and then one or two other areas in Riyadh,” Forte said. While the company’s current projects in Saudi Arabia are tied to PIF, he expressed openness to collaborating with private local investors in the future. 

“We haven’t been here long enough to start talking to a lot of private investors, but it’s obviously something we’d like to do and explore the possibilities there,” he stated. 

Forte emphasized that the investment from PIF has significantly raised the company’s global profile and strengthened its financial position. 

“PIF made a large investment in my company, and it was a very high-profile deal, it raised our visibility around the world in a way that wasn’t the case before,” he said. 

He also praised PIF’s long-term investment approach, aligning with Rocco Forte Hotels’ family-owned business model. 

“Many funds who invest in hotel companies and so on have a very short vision,” he said, “PIF is a different type of investor, and it very much coincides with my vision,” he added. 

In addition to its plans in Saudi Arabia, Rocco Forte Hotels is broadening its global footprint, with five new hotels currently under development in Italy, including an upcoming property in Milan scheduled to open in November.

The company is also exploring growth opportunities in Spain, Greece, and the US, driven by robust demand from American travelers.

Forte also noted emerging trends in Saudi Arabia that are shaping the luxury hospitality sector, such as the growing popularity of multi-generational family travel and the increasing convergence of business and leisure trips.

“There’s a lot of business travel where people are either adding a few days at the beginning or end for leisure. That’s very prevalent now,” he observed, underlining that while business travel has not fully returned to pre-pandemic levels, new patterns are emerging. 

Reflecting on Saudi Arabia’s tourism transformation, Forte described the scale of development as unprecedented. 

“If you’re outside Saudi Arabia, you don’t realize what is going on here,” he said. “Nothing like this has ever been attempted anywhere in the world. They’re developing 20 different destinations, and there’s an energy and dynamism which I think has captivated all the people.” 


Ceer supercharges Saudi EV industry with $1.4bn in deals, gearing up for 2026 launch

Ceer supercharges Saudi EV industry with $1.4bn in deals, gearing up for 2026 launch
Updated 26 min 19 sec ago
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Ceer supercharges Saudi EV industry with $1.4bn in deals, gearing up for 2026 launch

Ceer supercharges Saudi EV industry with $1.4bn in deals, gearing up for 2026 launch

RIYADH: Saudi Arabia’s first homegrown electric vehicle brand, Ceer, signed 11 deals worth SR5.5 billion ($1.4 billion) at a Public Investment Fund event ahead of its model launch in 2026

More than 80 percent of these agreements involve Saudi companies, reinforcing Ceer’s commitment to its 45 percent localization target and advancing the Kingdom’s Vision 2030’s economic diversification goals.

Among the key memorandums of understanding signed at the PIF Private Sector Forum are agreements related to heating and air conditioning, portable EV chargers and various manufacturing aspects, such as plastic injection parts.

In an interview with Arab News on the sidelines of the event, Jim DeLuca, CEO of the company, said: “At Ceer, we say we’re not just starting a car company. We are igniting the automotive industry,” he said.

DeLuca highlighted that Ceer is the only company in Saudi Arabia managing the entire process — from designing and engineering to manufacturing, selling, and servicing a portfolio of battery electric vehicles.

He highlighted the King Abdullah Economic City manufacturing plant, a cutting-edge facility capable of producing 38 jobs per hour with integrated shops for press, body paint, and general assembly. “You can’t have an automotive ecosystem without a local supply base, so we’ve attracted some of the best global tier-one suppliers, they too are joining us in KAEC, and so we’re developing this whole ecosystem.”

DeLuca outlined Ceer’s strategic supply chain approach, explaining how global tier-one suppliers produce key components and subassemblies that will be shipped into the plant on schedule.

“We’re talking about things like front-rear subframes, interiors, front-rear fascias, body components, but that’s only the beginning. Those tier ones need a tier-two supply base, and many of today’s announcements are tier-two suppliers who will provide smaller parts and components to the tier ones, who will then supply to us just in time,” he explained.

Ceer’s localization efforts ensure an efficient, cost-effective supply chain. “This is a capital-intensive, low-margin business, you need a laser-like focus on the strategic elimination of waste,” the top official said.

He added: “One of the ways you do that is by having your supply base right next to the plant. And because we’re in KAEC with Lucid and Hyundai, and hopefully one day others, that’s the type of volume these suppliers need to have a very positive business case.”

Ceer was announced in November 2022. File

Scaling up production and Saudi’s automotive future

Ceer’s business plan extends through 2034, with the KAEC plant set to ramp up production in phases. “In 2024, we started plant construction. In 2025, we will install process equipment — press, body paint, general assembly. Then, at the beginning of 2026, we start validation builds, moving from non-salable to salable.”

DeLuca revealed that by the last quarter of 2026, Ceer will be up and running, producing its first two aspirational vehicles for sale in Saudi Arabia.

The CEO also emphasized the importance of the King Salman Automotive Cluster, which serves as the industry umbrella for KAEC’s expanding automotive sector. Ceer has secured contracts with major tier-one suppliers, including Lear, Forvia, and Shinyoung, as well as Benteler, and JVIS, to localize key vehicle components. 

“These are global tier-ones, and we already have contracts with them. They haven’t been formally announced yet, but we’re talking about front-rear subframes, interiors, exterior body components, and sheet metal components — all large, complicated, and expensive to ship, so co-locating with the assembly plants is the right strategy,” he added.

Advancing charging infrastructure and market adoption

Addressing adoption challenges facing the sector, DeLuca pointed to PIF’s EV infrastructure initiative, EVIQ, which is deploying charging stations across major Saudi cities. 

“A lot of people have anxiety when considering a battery electric vehicle. What gives them comfort is a strong charging infrastructure. EVIQ is rolling out charging stations in Riyadh, Jeddah, Dammam, and beyond to ensure a seamless transition as we ramp up production,” he said.

Ceer plans to introduce seven vehicle models, spanning the E, D, and C segments, including sedans and SUVs, from 2026 to 2029. 

Ceer’s growth strategy and future outlook

Ceer’s assembly complex is designed for an annual capacity of 240,000 units and is fully funded, according to the CEO. 

“Our current business plan is fully funded through 2034 between our shareholders and other financial instruments. I think the vision of any company is eventually, potentially to have an IPO (initial public offering) where you can start to monetize all of the great work that has taken place, so I won’t say one day it’s not going to happen,” he added.

He acknowledged that global EV market adoption has been slower than anticipated, emphasizing that product quality, pricing, infrastructure, and incentives will drive Saudi Arabia’s transition. “The Ministry of Investment is working on ecosystem incentives to accelerate EV adoption. We see steady growth in the early days, but incentives will be key to making EVs the catalyst for Saudi Arabia’s automotive transformation.”

Ceer’s agreements and localization drive

According to a press release, agreements were signed at the event with Zamil Central Air Conditioners Co. for heating, ventilation, and air conditioning systems, Zamil Plastic Industrial Co. for plastic injection parts, Obeikan Glass Co. and Abdul Latif Jameel Enterprises for alloy wheels, and the Saudi Co. for Controls and Maintenance for portable EV chargers. 

Additional deals include Arabian Plastic Industrial Co. for blow parts, Saudi Aluminum Casting Co. for aluminum casting, First Telecom Industries for small stampings, and CTR for localizing aluminum forged parts in Saudi Arabia. 

Ceer has also partnered with 263 local companies, awarding businesses worth SR6.6 billion to firms such as Modern Building Leaders, Nahil Computer, and Bupa Arabia, as well as Atlas Industrial Equipment Co., Saudi Business Machines, and Liva Insurance.

Speaking at the forum, DeLuca underscored Ceer’s role in realizing Vision 2030’s industrial and economic diversification goals. “Over the next decade, we will attract more than $150 million in foreign direct investment, create up to 30,000 direct and indirect jobs, localize 45 percent of our product content or built material and contribute $8 billion directly to Saudi’s GDP by 2034,” he said.

The company’s manufacturing complex, a $1.3 billion facility spanning 1 million sq. meters in King Abdullah Economic City, is poised to become the largest and most technologically advanced automotive production hub in the Middle East and North Africa region. 

As part of its expansion strategy, the automotive company is set to welcome six major partners to KAEC, collectively contributing over SR50 billion in value. 

DeLuca highlighted Ceer’s commitment to localizing its supply chain, with 45 percent of its product content and built materials to be sourced within the Kingdom.

The company’s workforce has already grown to over 1,300 employees, according to the top official, with a team of global experts bringing extensive experience to drive innovation and competitiveness. 

DeLuca emphasized that strategic collaborations with leading automotive players such as Hyundai and Rimac are ensuring Ceer’s electric vehicles are technologically advanced and globally competitive.

One of Ceer’s standout features will be its industry-leading paint shop, offering an extensive color palette with over 30 shades in gloss, matte, and satin finishes, setting a new benchmark in vehicle customization.

“We’re here today at this forum as a testament to the power of collaboration and to highlight the vital role that the private sector plays in achieving all elements of Vision 2030,” DeLuca said.


OPEC sticks to 2025, 2026 global oil demand growth forecasts

OPEC sticks to 2025, 2026 global oil demand growth forecasts
Updated 46 min 53 sec ago
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OPEC sticks to 2025, 2026 global oil demand growth forecasts

OPEC sticks to 2025, 2026 global oil demand growth forecasts

LONDON: OPEC on Wednesday stuck to its forecast for relatively strong growth in global oil demand in 2025, saying air and road travel would support consumption and potential trade tariffs were not expected to impact economic growth.

In a monthly report, it said world oil demand will rise by 1.45 million barrels per day in 2025 and by 1.43 million bpd in 2026. Both forecasts were unchanged from last month.

OPEC’s view on oil demand is at the higher end of industry forecasts and it expects oil use to keep rising in coming years, unlike the International Energy Agency which see demand peaking this decade as the world switches to cleaner fuels.

In the report, OPEC said the trade policy of US President Donald Trump has added more uncertainty into markets, potentially creating supply-demand imbalances that are not reflective of market fundamentals, but it made no change to its 2025 economic growth forecast.

“It remains to be seen how and to what extent potential tariffs and other policy measures will play out,” OPEC said in the report. “So far, they are not anticipated to materially impact the current underlying growth assumptions.”

Oil was steady after the OPEC report was released with Brent crude trading lower towards $76 a barrel.

The IEA sees 2025 demand growth at 1.05 million bpd, lower than OPEC, although the gap between the two on 2025 is much smaller than it was for 2024 when the split reached a record high driven by differences over the pace of the energy transition.

OPEC+, which groups OPEC and allies such as Russia, has implemented a series of output cuts since late 2022 to support the market. Its current plan calls for oil output to be gradually increased from April.


Ma’aden to test data from Aramco warehouses to inform new mines plan

Ma’aden to test data from Aramco warehouses to inform new mines plan
Updated 47 min 12 sec ago
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Ma’aden to test data from Aramco warehouses to inform new mines plan

Ma’aden to test data from Aramco warehouses to inform new mines plan

RIYADH: The Saudi Arabian Mining Co., or Ma’aden, will analyze terabytes of data from Aramco’s warehouses as part of its efforts to build two mines, its CEO revealed. 

In a discussion titled “Ma’aden: Saudi Arabia’s Mining Industry Pioneer” on the first day of the Public Investment Fund Private Sector Forum, taking place from Feb. 12-13 in Riyadh, Robert Wilt explained that the company intends to test the core samples using artificial intelligence as part of its 2025 key performance indicators. 

This falls in line with the Kingdom’s goal to increase the mining industry’s gross domestic product contribution from $17 billion to $75 billion by 2035.

It also aligns well with Saudi Arabia’s efforts to establish mining as the third pillar of the nation’s industrial economy.

“We are in the process of finalizing the joint venture with Aramco to partner together to explore all of the Arabian platform. Our efforts to date have been focused on the Arabian Shield. Aramco has been exploring the platform for oil and gas now for 80 some years. They’ve got, I can’t tell you how many terabytes of data and core samples in warehouses as big as this hall that have not been tested for minerals,” Wilt said. 

“Another one of our KPIs this year is to find two mines by mining that data using artificial intelligence. So, we’re throwing technology, AI, digitization, and innovation across everything from exploration all the way through processing to reduce costs, make it more sustainable, and most of all for us is acceleration,” he added. 

 During the talk, the CEO also shed light on the fact that Ma’aden is utilizing 72 percent of its exploration budget this year on copper. 

This comes as the company has not “really spent as much time looking for the energy transition metals and some of the other minerals that we know are here,” Wilt said. 

He added: “Just this year, we’ve announced two or three major gold discoveries and we’re on the precipice of announcing two copper discoveries. So, I can tell you the minerals are here and it’s just up to us to get them out of the ground, to extract them sustainably, safely, responsibly.” 

The CEO also emphasized that the firm is only 10 to 15 years old and that it is already the third-largest exporter of phosphate fertilizers.

“We’re the fastest growing mining company in the world for the last five years and we’re the eighth-most valuable mining company in the world by market capitalization. So, a meteoric rise over the last decade and a half,” Wilt said.

He added: “We need to make this thing 10 times bigger by 2040. So, the aspiration is to not be one of the most valuable mining companies in the world — has to be the most valuable mining company in the world. It is to feed more than 10 percent of the world’s population; it is to provide the metals and minerals required for the downstream diversification across the Kingdom, whether it’s aluminum, copper, lithium, zinc.”

The CEO noted that the company estimates that there are $2.5 trillion worth of reserves buried in the sands of Saudi Arabia. 

“If you look at the $2.5 trillion, 45 percent of its phosphate, and we know where that is. We’re already mining it; we’re already producing it. It’s the biggest part of our business,” Wilt said.

“But then some of the exotic minerals like rare earth elements, you know, we’re close to being able to talk about that publicly. There’s a lot of interest in the Kingdom for some from some near-stage discoveries where we’re making there, so I would say probably 60 percent has been actively explored, and then the 40 percent we’ve got to accelerate through to the pipeline,” he added.

The forum, which will unite more than 90 PIF-backed companies, seeks to strengthen supply chains, boost local manufacturing, and accelerate economic diversification under Vision 2030.  

Now in its third year, the event will spotlight business opportunities with the sovereign wealth fund and its portfolio companies, identify potential prospects for investors and suppliers, and expand avenues for collaboration. It will also serve as a bridge between PIF, its portfolio companies, and the private sector, reinforcing localization efforts.


Saudi PIF announces 30% acquisition in Masdar, $1.5bn SEDRA deals

Saudi PIF announces 30% acquisition in Masdar, $1.5bn SEDRA deals
Updated 42 min 51 sec ago
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Saudi PIF announces 30% acquisition in Masdar, $1.5bn SEDRA deals

Saudi PIF announces 30% acquisition in Masdar, $1.5bn SEDRA deals

JEDDAH: The Saudi sovereign wealth fund has unveiled major investments, including a 30 percent stake in Masdar Building Materials Co. and a $1.5 billion ($400.5) contract to develop the Riyadh Sedra community.

The announcements were made during the Public Investment Fund’s Private Sector Forum, held from Feb.12-13 in the Saudi capital.

The partial acquisition aligns with the Kingdom’s efforts to increase private sector participation in its economic diversification initiatives, with the wealth fund playing a central role in this transformation to achieve the goals of Saudi Vision 2030. The construction, building components, and services sector is a priority due to its crucial economic contribution.

In a statement, PIF said the move aims to strengthen Saudi Arabia’s leading position in the sector to meet current and future demand. 

PIF seeks to reinforce local supply chains, prioritize strategic products and services, and localize advanced technologies and expertise.

Ahmad Al-Ghamdi, head of construction and building materials, MENA Investments at PIF, stated that the investment in Masdar will strengthen local supply chains by enhancing capabilities in the construction, building components, and services sector, which is one of PIF’s strategic focus areas.

“The investment will also support the development of the building materials distribution network, increase access to value-added services, and accelerate digital transformation through the adoption of the latest technologies and solutions.” Al-Ghamdi said.

He added that the financial backing also represents another step toward promoting partnerships with the private sector to develop strategic industries and increase the Kingdom’s gross domestic product.

Faisal Al-Muhaidib, Masdar CEO, said: “As a leading building and construction materials company in Saudi Arabia, we look forward to partnering with PIF to play a vital role in supporting the growth and development of the sector by scaling up our capabilities and meeting current and upcoming demand.”

The CEO added that the construction, building components and services sector is one of the most vital and promising in the Kingdom. PIF’s investment will accelerate his company’s growth, enabling it to expand its capabilities and strengthen its leading position by offering products through its distribution network.

PIF said that the acquisition of the local company specializing in the trading and distribution of building materials is through a capital increase by subscribing to newly issued shares, according to its statement released on Feb. 12.

The wealth fund added that the investment will enable Masdar to transform its operations through digital technology, improving customer experience and operational efficiency. Additionally, it will help Masdar expand its operations, build new strategic partnerships, and increase the role of local suppliers and businesses in the building materials market.

PIF-Backed ROSHN secures $400M in development contracts

During the forum, Saudi Arabia’s giant property developer and PIF company ROSHN signed contracts worth SR1.5 billion to develop the SEDRA integrated residential community in the capital city.

These include an SR650 million contract with SARH ATTQNIA Co. to develop 968 housing units and an SR720 million deal with the Chinese construction company HCE to build luxury units within the eight-phase SEDRA project, which was announced in 2021.

The project spans 20 million sq. meters and is plans to provide over 30,000 private homes as part of the Kingdom’s broader urban development and housing initiatives. 

In August, ROSHN opened sales for 1,251 new homes as part of the fourth phase of the project, which expands the flagship development by 1.8 million sq. meters, featuring homes near the natural wadi integrated into the SEDRA masterplan, following high demand and sales for homes in the community, according to the company.

In October 2023, the property developer launched the sales for the third phase of the project, introducing 3,438 new residences and a wide range of amenities. 

The initiative is known for its modern residential communities and integrated amenities, contributing to the Kingdom’s Vision 2030 goals of enhancing urban living and promoting sustainable living.