the_saudi_boom_logo_multicolor
Home » The Pif » PIF Acquires 25% in Alkhorayef Petroleum Boosting Saudi Manufacturing and Vision 2030
PIF Acquires 25% in Alkhorayef Petroleum Boosting Saudi Manufacturing and Vision 2030
PIF Acquires 25_ in Alkhorayef Petroleum Supporting Saudi Manufacturing and Vision 2030

Saudi Arabia’s Public Investment Fund has acquired a 25% stake in Alkhorayef Petroleum which has an important role in the region’s oil and gas production. The acquisition is part of the PIF efforts to deepen the manufacturing sector in Saudi Arabia and support the delivery of Vision 2030.

The No.1 Business Site in Saudi Arabia

Get The Latest Developments in The Growth of Saudi Arabia Straight to Your Inbox and Stay Ahead of The Curve

The PIF’s Role in Diversification

Saudi Arabia’s Public Investment Fund (PIF) is playing a pivotal role in the diversification and growth of the Saudi economy. 

Under the banner of Vision 2030, Saudi Arabia aims to boost non-oil revenues and foster the growth of the private sector to invigorate the economy. The overarching goal is to transform the Kingdom into a global investment powerhouse and a hub connecting three continents: Asia, Europe, and Africa.

Alkhorayef Petroleum as An Industry Leader

Alkhorayef Petroleum enjoys a diversified revenue base and a successful operational track record, spanning 13 countries in the Gulf Cooperation Council, as well as Africa and Latin America.

Through a capital increase and subscription to new shares, PIF has secured a 25% shareholding in Alkhorayef Petroleum. The remaining 75% stake is retained by Alkhorayef Group, the parent company of Alkhorayef Petroleum.

This investment is in line with PIF’s broader strategy to enhance Saudi Arabia’s equipment and service landscape, fostering the growth of promising private sector companies, and contributing to the development of the industrial ecosystem. 

The ultimate aim is to boost export revenues, thus supporting the realization of Vision 2030.

PIF’s Investment as A Win-Win Partnership

The PIF’s investment in Alkhorayef Petroleum is expected to fortify the latter’s position in the energy services industry. The deal is anticipated to improve supply chains in the energy services sector within Saudi Arabia and enhance the company’s presence in the global market.

As per Muhammad Aldawood, PIF’s head of the Industrials and Mining sector in MENA Investments, this investment forms part of PIF’s broader efforts to deepen the manufacturing sector in Saudi Arabia. It represents a milestone in strengthening the regional industrial ecosystem.

The Road Ahead

3 PIF Acquires 25 in Alkhorayef Petroleum Supporting Saudi Manufacturing and Vision 2030

With this strategic investment, Alkhorayef Petroleum is poised for optimal growth. The company is set to leverage its technical and commercial capabilities while enhancing its presence in the energy services industry. The agreement is expected to improve supply chains in the energy services sector within Saudi Arabia.

Saad Alkhorayef, chairman of Alkhorayef Petroleum and Alkhorayef Group, believes that the investment is a recognition of their achievements in the Middle East, Africa, and Latin America.

He sees it as a significant milestone that will strengthen the company’s position as a leading oilfield services provider globally.

Further Developments and Prospects

5 PIF Acquires 25 in Alkhorayef Petroleum Supporting Saudi Manufacturing and Vision 2030

Saudi Arabia’s leading mining enterprise, Ma’aden, 67% owned by the Public Investment Fund, is venturing into the extraction of lithium from seawater. This initiative is geared towards securing a stable supply of electric vehicle batteries, bolstering the burgeoning automotive sector. 

Additionally, Ma’aden is overseeing the development of the kingdom’s largest gold mine, intending to nearly double its gold production capacity.

Keep Reading: Saudi Arabia’s Ma’aden to Explore Lithium Extraction from Seawater for EV Batteries

Become smarter in just 5 minutes

Get the latest developments on The Saudi Boom straight to your inbox and stay ahead of the curve for free