Today, Tuesday, the Saudi Fund for Public Investment announced the investment for a total value of 5 billion riyals by subscribing new shares through a capital increase in representation of minority interests in four primary national companies operating in the building and construction services sector, namely: “ Nesma Company.” And their Contracting Partners”, “Al-Saif Contracting Engineers Company”, “Al-Bawani Holding Company” and “Al-Mabanee General Contractors Company”, which will help to boost the construction services sector and strengthen supply and procurement chains for various current and future projects in the Kingdom.
And according to the companies’ strategies in developing their business, the four companies have long experience in managing and implementing many large projects in more sectors in various regions of the Kingdom and their partnership with the Fund will help support the companies’ efforts to expand their operations and businesses regionally and internationally.
These investments will also help to increase the volume of local content and increase the gross domestic product of the Kingdom, as well as strengthen supply chains by increasing the competitiveness of the construction and building services sector, increasing its production capacity and developing its capabilities as well as creating additional opportunities for the local private sector to participate in the implementation of current and future project development work. In view of the international position of the fund, the fund will allow companies to develop regional and international relationships in the sector with the aim of increasing the dependence on new technologies in construction and transferring knowledge to the local market.
Yazid Al-Homaid, Deputy Governor and Head of Investment Department in Middle East and North Africa at the Public Investment Fund, said: “This partnership confirms the Public Investment Fund’s commitment to enabling the growth and development of strategic sectors in the Kingdom, such as the construction and Building materials and services is one of 13 strategic sectors focused on the fund locally.
He added: “The fund’s investment in these national companies will help expand local capabilities in the building and construction services sector and improve private sector participation and investment to meet current and future demand in this vital sector, in in line with Saudi Arabia’s Vision 2030 goals.”
For his part, Abdulaziz Al-Turki, Chairman of the Board of Directors of Nesma & Partners Contracting Company, said: “The company has been working for more than 40 years in harmony with the local community and the environment, maintaining the highest standards standard international organizations to have a greater impact on the local economy”.
Ing. Khaled Al-Seif, Chairman of the Board of Al-Seef Engineers & Contracting Company, said, “The building and construction services sector has a long track record of implementing large and ambitious projects. We are supported as we aspire to be the leading construction company in our business sectors.”
Ing. Fakhr Al-Shawaf, Chairman of the Board of Directors of Al-Bawani Holding Company, confirmed: “Partnering with the Public Investment Fund represents an outstanding opportunity to benefit from the Fund’s expertise and experience to implement the our transformation strategy in a multi-asset group in the region providing the best value to our customers, investors, employees and to our society on a broader scale”. Building and construction services are of great importance to the Saudi economy and we believe the Fund’s contribution to this sector it will provide support and assistance to realize the vision of the Kingdom and realize its ambitious projects”.
Engineer Youssef Tohme, Chairman of the Board of Mabanee General Contractors Company, said, “We look forward to partnering with the Public Investment Fund to build projects that contribute to the welfare of society and play a vital role in the achievement of the Saudi 2030 vision goals.
He added: “The Kingdom aims to strengthen the role of the private sector in the local economy and this investment will certainly support the ability of private sector companies to provide basic services.”
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