The Public Investment Fund (PIF), Saudi Arabia's sovereign wealth fund, has completed the acquisition of a 25 percent stake in Emaar The Economic City (EEC) after obtaining required regulatory approvals, it said on Monday.
EEC, linked to Dubai property developer Emaar and working on Saudi Arabia's King Abdullah Economic City, issued new shares to PIF through a 2.8 billion riyals ($755 million) debt conversion.
“The PIF’s strategic investment will provide an opportunity to leverage synergies between EEC and PIF’s ecosystem in the real estate, manufacturing, logistics and tourism sectors,” the fund said in a statement.
It will also accelerate the development of EEC by establishing King Abdullah Economic City (KAEC) as a great enabler of socio-economic development in Saudi Arabia.
The investment aims to unlock the potentials of promising non-oil sectors to enhance the Kingdom’s efforts to diversify revenue sources, create strategic and operational value, improve the primary infrastructure and support economic development, the statement added.