RIYADH: Saudi Arabia is adopting new strategies to invest its money — more aggressive, more high-profile and more closely linked to its economic development plans — with the $3.5 billion purchase of a stake in US ride-hailing firm Uber.
The deal makes the Saudi state’s Public Investment Fund (PIF) a player in the technology start-up market.
It also makes Riyadh part owner in a firm, which could help to rescue the Kingdom from low oil prices by diversifying the economy and creating jobs for local citizens. Uber is a popular form of transport for Saudi women.
PIF Managing Director Yasir Al-Rumayyan referred to these goals in a statement on the deal, saying the fund aimed not only to make money but also to support a sweeping economic reform plan announced in April, said Reuters.
The plan focuses on “unlocking strategic sectors such as tourism and entertainment, boosting employment opportunities and women’s participation in the workforce, and encouraging entrepreneurship,” he said.
Uber, which has operated in Saudi Arabia since early 2014, did not announce any specific agreement to expand its business in the Kingdom because of the PIF deal. But Al-Rumayyan will take a seat on Uber’s board, giving the Saudi government direct involvement in the company’s decisions.
The PIF deal “is a bold step in the right direction,” said Maryam Al-Subaie, a Saudi businesswoman who uses Uber almost daily. She owns a mobile phone repair shop used exclusively by women, the first such shop licensed in Riyadh.
“Because of the nature of my work and my need for transportation, it used to be very difficult because I couldn’t afford my own driver. Or a driver couldn’t get to me when I needed him.”
The deal makes the Saudi state’s Public Investment Fund (PIF) a player in the technology start-up market.
It also makes Riyadh part owner in a firm, which could help to rescue the Kingdom from low oil prices by diversifying the economy and creating jobs for local citizens. Uber is a popular form of transport for Saudi women.
PIF Managing Director Yasir Al-Rumayyan referred to these goals in a statement on the deal, saying the fund aimed not only to make money but also to support a sweeping economic reform plan announced in April, said Reuters.
The plan focuses on “unlocking strategic sectors such as tourism and entertainment, boosting employment opportunities and women’s participation in the workforce, and encouraging entrepreneurship,” he said.
Uber, which has operated in Saudi Arabia since early 2014, did not announce any specific agreement to expand its business in the Kingdom because of the PIF deal. But Al-Rumayyan will take a seat on Uber’s board, giving the Saudi government direct involvement in the company’s decisions.
The PIF deal “is a bold step in the right direction,” said Maryam Al-Subaie, a Saudi businesswoman who uses Uber almost daily. She owns a mobile phone repair shop used exclusively by women, the first such shop licensed in Riyadh.
“Because of the nature of my work and my need for transportation, it used to be very difficult because I couldn’t afford my own driver. Or a driver couldn’t get to me when I needed him.”
