In a deal valued at $1.1 billion, the Saudi Public Investment Fund signed an agreement to acquire 38% from the South Korean company POSCO Engineering & Construction, one of the world’s leading engineering and construction firms, which specializes in the construction of factories, energy facilities, infrastructure, and urban development, and has several international branches in emerging markets. Under the new deal, 38 percent of POSCO’s shares will be transferred to the Public Investment Fund, and the agreement also includes the establishment of a Saudi joint venture in the engineering and construction sector.
The agreement was signed by Abdulrahman bin Mohammed Al-Mufdi, Secretary-General of the Public Investment Fund, and representatives of the Korean company, in the presence of representatives from the Public Investment Fund and senior executives from POSCO Engineering & Construction and POSCO’s parent company, at the headquarters of POSCO Engineering & Construction in the Korean city of Sunju. Al-Mufadi said, ”The signing of the acquisition agreement is in line with the Kingdom’s plans and policies to transfer knowledge, expertise, and technology, and to develop projects that will achieve ambitious development goals that strengthen the Kingdom’s economic standing, and provide employment opportunities for local talent by laying a strong foundation for training Saudi youth.
It is worth noting that the engineering and construction sector ranks second only to the oil sector in contributing to the Kingdom’s GDP, while recent reports indicate that the Kingdom plans to spend approximately $15 billion on the construction sector this year on strategic projects and infrastructure, underscoring the sector’s vast scale, promising opportunities, and significant importance to sustainable economic development.
