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Saudi PIF Raises Stake in MEPCO to 23.08%

The Public Investment Fund (PIF)
The Public Investment Fund (PIF)
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Saudi PIF Raises Stake in MEPCO to 23.08%

The Public Investment Fund (PIF)
The Public Investment Fund (PIF)

The Public Investment Fund (PIF) announced on Thursday that it has finalized an investment agreement with the Middle East Paper Company (MEPCO), a manufacturer specializing in the production and recycling of paper-based products in the Middle East and North Africa region.

PIF said in a statement that it has acquired a 23.08% stake in MEPCO through a capital increase and subscription to new shares.

Through its investment, PIF aims to expand MEPCO production, enhance its operational efficiency, and support environmental sustainability, through recyclable products, including paper goods. This aligns with the sustainability objectives of both Saudi Arabia and PIF.

According to the statement, the investment will support MEPCO's expansion strategy, particularly in the areas of packaging and specialized building materials such as gypsum boards, commonly known as "drywall." This will reinforce the local supply chain, catering to existing and future projects.

"PIF has a diversified portfolio of investments in the construction services sector to support the sustainable growth of the Saudi economy, attract local and foreign investments, expand operational capacity and transfer technology," it said.

It added that PIF is collaborating with private businesses to empower 13 priority sectors, including retail, construction and real estate, within the framework of PIF’s investment strategy. This contributes to achieving the goals of Saudi Vision 2030 and diversifying the economy.

"PIF’s investment in MEPCO reflects the attractive opportunities for growth in promising sectors such as recycling, retail and building materials. This investment enables MEPCO to expand its sustainable production activities while focusing on high value-added products and growing its export activities,” said Head of Industrials and Mining Sector in MENA Investments at PIF Muhammad Aldawood.

CEO of MEPCO Eng. Sami Al Safran emphasized that PIF's investment enables the implementation of its expansion strategy and captures significant growth potential, both locally and regionally, which helps creating new opportunities, "as MEPCO continues its journey to become a national champion in our industry.”

He added: "Our company strives for sustainable growth and a better future, thanks to its unique strategy which integrates paper products and waste management. MEPCO is investing in the sector through ambitious projects to support Saudi Arabia’s goals of sustainability and transition to a circular economy by recycling, reducing waste and converting waste into energy sources to meet our business needs."

The rapid growth and localization efforts in the Saudi market present investment prospects in paper products and related industries like tissues.

Additionally, PIF's investment in MEPCO supports the private sector in Saudi Arabia, enhances local content, increases high-value ready-for-market exports and improves quality and competitiveness.

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Rise in Non-Oil Exports Strengthens Saudi Arabia’s Economic Diversification Efforts

King Abdulaziz Port in Dammam, east of Saudi Arabia (SPA) 
King Abdulaziz Port in Dammam, east of Saudi Arabia (SPA) 
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Rise in Non-Oil Exports Strengthens Saudi Arabia’s Economic Diversification Efforts

King Abdulaziz Port in Dammam, east of Saudi Arabia (SPA) 
King Abdulaziz Port in Dammam, east of Saudi Arabia (SPA) 

Saudi Arabia’s non-oil exports continued their upward trajectory, reflecting the Kingdom’s ongoing efforts to diversify its economy. According to data from the General Authority for Statistics (GASTAT), non-oil exports, including re-exports, grew by 10.7% in January, while excluding re-exports, they increased by 13.1%.

The International Trade Statistics Bulletin for January, published by GASTAT, reported a 2.4% growth in Saudi Arabia’s total merchandise exports compared to the same period last year. Meanwhile, oil exports saw a slight decline of 0.4% in January. The share of oil exports in total exports also dropped from 74.8% in January 2024 to 72.7% in January 2025.

This increase in non-oil exports is a positive indicator of the success of Saudi Arabia’s economic policies in diversifying income sources beyond oil, according to Dr. Abdullah Al-Jassar, a member of the Saudi Association for Energy Economics. Speaking to Asharq Al-Awsat, Al-Jassar emphasized that this growth did not happen by chance but was the result of a comprehensive strategy to develop the manufacturing sector, which has become a key driver of the non-oil economy. Notably, chemical industry products accounted for 23.7% of total non-oil exports.

He also highlighted that major improvements in logistics infrastructure, supported by the National Industrial Development and Logistics Program (NIDLP), have enhanced export efficiency and strengthened the connection between Saudi-made products and global markets—solidifying the Kingdom’s position as a key trade hub.

China: A Key Trade Partner

According to the latest data, China remains Saudi Arabia’s top trading partner, accounting for 15.2% of the Kingdom’s total exports, while imports from China made up 26.4% of total imports. This underscores Saudi Arabia’s strong presence in Asian trade, Al-Jassar noted.

Imports and Trade Surplus

Despite an 8.3% increase in imports, the trade surplus declined by 11.9%. However, Al-Jassar explained that this decline should be viewed within the broader context of Saudi Arabia’s structural economic transformation. The rise in imports is largely driven by an increase in production inputs that support industrial expansion rather than consumer goods.

Economic policy expert Ahmed Al-Shihri told Asharq Al-Awsat that the 10.7% growth in non-oil exports reflects the success of investments in industrial sectors, particularly the chemical industry, which accounted for 23.7% of non-oil exports. This growth indicates an improvement in production capacity and international competitiveness.

“The increase in non-oil exports is driven by enhancements in industrial infrastructure, government support for the private sector, and rising global demand for Saudi non-oil products. This shift reduces the Kingdom’s dependence on oil as the primary revenue source, making the economy more resilient to fluctuations in oil prices. Furthermore, the rise in the ratio of non-oil exports to imports—from 35.7% to 36.5%—suggests a healthier trade structure that supports long-term economic sustainability,” Al-Shihri added.

Vision 2030

Saudi Vision 2030 continues to drive non-oil sector growth through various initiatives, including enhancing local content, boosting exports, attracting foreign investments, and expanding economic and logistics zones. Al-Jassar believes that the continuation of these strategies will establish Saudi Arabia as an emerging export powerhouse in the coming years, further strengthening its global economic standing.