Riyadh: As announced on Monday, Saudi Arabia’s Public Investment Fund (PIF) acquired a 25 percent stake in the Emaar Economic City (EEC).
The PIF and Emaar have announced the completion of the transaction, declaring PIF a major shareholder in EEC with a 25 percent stake.
The transaction involved the transfer of EEC’s debt to PIF of SR2.8 billion ($755 million). PIF is now an equity investor in EEC following the issuance of new shares through debt conversion.
PIF believes that the transaction will accelerate all developments of EEC by establishing KAEC, the King Abdullah Economic City, and will prove to be a harbinger of socio-economic development in Saudi Arabia.
Furthermore, the investment will enhance Saudi Arabia’s efforts to diversify revenue sources, improve the primary infrastructure, create strategic and operational value, and support economic development.
PIF’s Local Real Estate Division’s head, Eng. Aiman AlMudaifer, said, “We are pleased to conclude this transaction. It has the potential to be a win-win for PIF and EEC and to deliver more comprehensive benefits for the broader Saudi economy in line with the aims set out in Saudi Vision 2030.
Cyril Piaia, Chief Executive Officer of Emaar, the Economic City, the master developer of King Abdullah Economic City – said, “We welcome the Public Investment Fund as a significant shareholder in Emaar, the Economic City.