Saudi Arabia’s Public Investment Fund (PIF) is intensifying its efforts to accelerate the pace of local industries within the Kingdom, launching several specialized and diverse Saudi projects and facilities that cater to all targeted strategic sectors, aiming to lead economic transformation and contribute to sustainable development.
So far, PIF’s efforts have led to the establishment of 12 companies in approximately 212 days since the beginning of 2023.
The Saudi sovereign wealth fund is looking to stimulate competitive and innovative advantages by focusing on the development of 13 promising sectors within the country.
This initiative aims to enhance local supply chains, create investment opportunities for the private sector, and encourage suppliers to enhance their capabilities, all of which contribute to increasing the localization of imported goods and services.
Since January 11, the PIF has announced the establishment of approximately 12 new companies.
It was in January that Saudi Arabian Mining Co., also known as Ma’aden, and the PIF agreed to form a joint venture to invest in mining assets globally.
The new venture’s strategy will initially focus on investing in iron ore, copper, nickel, and lithium.
In February, PIF signed a deal with American company AeroFarms to establish a company headquartered in Riyadh and build “indoor vertical farms” in the Kingdom and across the Middle East and North Africa.
The deal aims to make the best use of natural resources via adopting “indoor vertical farming” techniques that grow more food in less space and use 95% less water than traditional farming.
The partnership is expected to provide high-quality local crops all year round by using AeroFarms’ smart farming technology.
AeroFarms will establish and operate several farms in the region during the next few years.
The annual production of the first farm in the Kingdom is estimated at 1.1 million kilograms of crops, representing the largest amount produced through this technology in the MENA region.
The agreement aligns with PIF’s focus on the development and empowerment of promising sectors, including agriculture and food.
It also encompasses the localization of new agricultural technologies and the enhancement of the food industries through partnerships with the local private sector. This initiative aims to contribute to improving the Kingdom’s trade balance and elevating the country’s position in the field of vertical farming in the region.
To contribute to the development of the future of the Saudi capital in line with the goals of Kingdom Vision 2030, the PIF established the New Murabba Development Company (NMDC), which aims to develop the world’s largest modern downtown in Riyadh.
The NMDC project will incorporate sustainability standards and enhance the quality of life through features such as green spaces, pedestrian pathways, and the promotion of healthy lifestyles, sports, and community activities.
Additionally, the project will house an innovative museum, a specialized university focusing on technology and design, a versatile integrated theater, and over 80 areas for live shows and entertainment.
The project is set to provide 104,000 residential units, 9,000 hospitality units, and commercial spaces spanning over 980,000 square meters.
Furthermore, it will include 1.4 million square meters of office spaces, around 620,000 square meters for entertainment facilities, and approximately 1.8 million square meters for community amenities.
