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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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‘Middle East Green Initiative’ Aims to Launch Projects in Multiple Countries by 2025

A group photo of participants at the Jeddah meeting, which approved the membership of 10 countries (Ministry of Environment)
A group photo of participants at the Jeddah meeting, which approved the membership of 10 countries (Ministry of Environment)
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‘Middle East Green Initiative’ Aims to Launch Projects in Multiple Countries by 2025

A group photo of participants at the Jeddah meeting, which approved the membership of 10 countries (Ministry of Environment)
A group photo of participants at the Jeddah meeting, which approved the membership of 10 countries (Ministry of Environment)

Dr. Osama Faqih, head of the executive committee for the “Middle East Green Initiative,” announced plans to launch several qualifying projects in member countries by the end of 2025.

He also stated that the initiative will establish a secretariat and outlined specific criteria for selecting the Secretary-General, who will be approved by the executive committee and the ministerial council.

Faqih outlined the implementation phases of the initiative, starting with a founding team of 16 regional countries and an executive committee of 20 founding states. This committee will establish the governance for the initiative, as projects will be based in member countries.

Speaking to Asharq Al-Awsat, Faqih explained that funding will come from regional and international countries, the private sector, and various financial institutions, according to the initiative’s charter.

He noted that Crown Prince Mohammed bin Salman announced a donation during the second summit of the Middle East Initiative in Sharm El Sheikh, Egypt, held alongside the Climate Conference. The secretariat will be located in Riyadh.

Membership in the initiative is divided into two categories: regional countries, which include Central and Southwestern Asia, North Africa, and sub-Saharan Africa, can host projects and contribute to achieving the initiative's goals. Non-regional countries can also join to support financial and technical funding.

The initiative prioritizes land rehabilitation, with Faqih highlighting the global challenges of land degradation and desertification.

He noted that over 99% of the world’s calories and about 95% of food come from land, making these issues critical for food security. The initiative aims to rehabilitate 200 million hectares of land in member countries, providing significant environmental, economic, and social benefits, such as carbon storage, vegetation growth, food security, and social welfare.

Faqih’s comments followed the first session of the ministerial council for the “Middle East Green Initiative,” held in Jeddah, Saudi Arabia.

The council welcomed ten regional countries and one non-regional country, the United Kingdom, as an observer.

They also set ambitious national policies and targets for vegetation development, agreeing on a governance structure that includes 32 elements covering the organizational framework, secretariat, project types, submission mechanisms, evaluation criteria, and funding processes.

Saudi Minister of Environment, Water, and Agriculture Abdulrahman Al-Fadley, who chaired the session, emphasized the need for regional cooperation to enhance vegetation development and address environmental challenges, particularly desertification and limited greenery in the region.

He indicated that the meeting marks a shift to the implementation phase, urging all member countries, both regional and non-regional, to join and actively participate in the initiative and its trust fund.