The Public Investment Fund (PIF) and Emaar Economic City (EEC) today announced the completion of an investment transaction under which the Fund will become a major shareholder in the company with a stake of 25%.

The transaction is in line with the Fund's 2021-2025 strategy that aims to build strategic economic partnerships.<It will develop areas of cooperation between the company and the Fund's portfolio companies, while contributing to improving the Kingdom's basic infrastructure and supporting economic development.

The Public Investment Fund (the “Fund”) and Emaar Economic City (EEC) (the “Company”) today announced the completion of an investment transaction under which the Fund will become a major shareholder in the Company with a stake of 25% after obtaining the necessary approvals.<The transaction follows the completion of the transfer of part of the loan obtained by Emaar from the Ministry of Finance (SAR 2.8 billion) to the Public Investment Fund in exchange for the issuance of new shares in the Company.

The transaction will develop multiple synergies between the Company and the Fund's ecosystem, particularly in the real estate, manufacturing, logistics and tourism sectors, thereby promoting attractive long-term returns for the Fund and its shareholders.

The transaction is expected to contribute to the development of Emaar Economic City (EEC) by enhancing the role of King Abdullah Economic City (KAEC) as a key enabler of social, economic and tourism development in the Kingdom.<The investment transaction will focus on maximizing and unlocking the potential of promising non-oil sectors, supporting the Kingdom's efforts to diversify sources of income, increase strategic and operational value, and improve essential infrastructure.

Commenting on the completion of the transaction, Engineer Ayman bin Mohammed Al Medefer, Head of the General Directorate for Domestic Real Estate Investments at PIF, said: “We are pleased to complete this transaction, which represents a milestone not only for PIF and Emaar Economic City, but also for the Saudi economy in line with the objectives of the Kingdom's Vision 2030.”

He added: “Our investment in Emaar is in line with the Fund's 2021-2025 strategy, which aims to build strategic economic partnerships through the Fund, as well as unlock the potential of promising sectors in the Kingdom, including transportation, logistics, real estate and tourism sectors.”

For his part, Mr. Cyril Payaya, CEO of Emaar Economic City (EEC) - the main developer of King Abdullah Economic City, said: ”We welcome the Public Investment Fund as a major shareholder in Emaar Economic City, as this strategic partnership aims to activate the role of King Abdullah Economic City