PIF’s Acquisition of Two Steel Companies Boosts Saudi Economic Growth

Saudi Arabia’s Public Investment Fund acquires full ownership of “Hadeed,” owned by SABIC (SABIC’s website)
Saudi Arabia’s Public Investment Fund acquires full ownership of “Hadeed,” owned by SABIC (SABIC’s website)
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PIF’s Acquisition of Two Steel Companies Boosts Saudi Economic Growth

Saudi Arabia’s Public Investment Fund acquires full ownership of “Hadeed,” owned by SABIC (SABIC’s website)
Saudi Arabia’s Public Investment Fund acquires full ownership of “Hadeed,” owned by SABIC (SABIC’s website)

Saudi Arabia’s Public Investment Fund (PIF) has announced the signing of a share purchase agreement worth around $3.3 billion to acquire a 100% shareholding in the Saudi Iron & Steel Company (Hadeed) from the Saudi Basic Industries Corporation (SABIC).

Simultaneously, Hadeed will acquire a 100% shareholding in AlRajhi Steel Industries Company (Rajhi Steel) from Mohammed Abdulaziz AlRajhi & Sons Investment Company (Rajhi Invest). This exchange involves newly issued shares in Hadeed.

The announcement of these two deals came in a statement released by PIF on Sunday.

In the statement, PIF indicated that the acquisitions will support its efforts in contributing to the development of the local industry and meeting the increasing domestic demand for products in the construction, automotive, utilities, renewable energy, transportation, logistics, and other sectors, aligning with the goals of Saudi Vision 2030.

“These transactions will bring together PIF’s financial capabilities and industry experience with Hadeed and Rajhi Steel’s leading technical and commercial expertise, to create a national champion in Saudi Arabia’s steel sector,” said Yazeed Al-Humied, the PIF’s deputy governor and head of Middle East and North Africa investments.

Financial analysts have described these deals as significant contributors to the growth of the Saudi economy in globally critical economic sectors.

They emphasize the diversification of income sources and achieving financial sustainability for the Saudi economy.

Furthermore, these acquisitions will bolster the investment portfolio of PIF and establish a new Saudi powerhouse capable of global competition in the iron and steel sector, with the potential to engage in numerous large-scale projects both within and outside the Kingdom.

Financial analyst Abdullah Al-Jubaili, in his conversation with Asharq Al-Awsat, sees the acquisitions as part of the government’s efforts to bolster the growth of the Saudi economy in globally significant economic sectors.

Infrastructure and iron sectors are considered key pillars of this endeavor.

Al-Jubaili further elaborates that PIF’s purchase of both SABIC's Hadeed and Al Rajhi Iron and their merger into a single entity will contribute to the emergence of a new Saudi powerhouse capable of global competition in this market.

This entity will be positioned to engage in numerous large-scale projects, both domestically and internationally.

Al-Jubaili explains that the timing of the acquisition coincides with the sharp decline in financial results for petrochemical companies. This move will assist SABIC soon to focus on enhancing its profitability in the petrochemical sector, given the global pressure on product prices and sector sales.

Additionally, the company will concentrate on its targeted sector and utilize its sales proceeds to expand in the petrochemical industry. This expansion may involve increasing the capacity of its factories or introducing new products to the markets.

 

 



Saudi Arabia Boosts Food Security

An agricultural farm in Saudi Arabia (SPA)
An agricultural farm in Saudi Arabia (SPA)
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Saudi Arabia Boosts Food Security

An agricultural farm in Saudi Arabia (SPA)
An agricultural farm in Saudi Arabia (SPA)

Saudi Arabia is accelerating efforts to strengthen food security, a strategic objective rooted in the Kingdom’s founding and shaped by its desert geography and limited water resources.

As part of its Vision 2030, the Kingdom has placed food security among its top priorities, implementing a national strategy to boost local production and promote long-term agricultural sustainability.

The agricultural sector’s contribution to GDP rose to SAR114 billion ($30.4 billion) in 2024, up from SAR109 billion ($29 billion) the previous year, according to the latest Vision 2030 annual report.

Government support, particularly through the Agricultural Development Fund, has fueled the sector’s growth. Agricultural loans increased by 54% between 2018 and 2024, reaching SAR5 billion ($1.33 billion).

Saudi Arabia has achieved higher self-sufficiency rates across several key products. Domestic production in 2024 included 2.95 million tons of fruit, 3.38 million tons of vegetables, 1.83 million tons of grains, 399,000 tons of eggs, 2.7 million tons of milk, 274,000 tons of red meat, 1.15 million tons of poultry, 217,000 tons of fish, and 8,500 tons of honey.

Aquaculture has seen significant growth, with fish production rising from 40,000 tons in 2016 to over 246,000 tons in 2024, driven by investments in sustainable technologies and marine projects. Saudi Arabia is positioning itself as an emerging regional hub for aquaculture.

The Kingdom’s progress reflects its long-term commitment to food security, supported by initiatives to enhance supply chains, stimulate private sector investment, and advance research and innovation in modern farming technologies. Authorities say the achievements so far signal Saudi Arabia’s ability to continue advancing toward self-sufficiency in a more resilient and sustainable agricultural environment.