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The PIF’s Private Sector Forum wrapped up yesterday following two-days of talks on empowering the private sector as the Kingdom looks to raise the sector’s contribution to GDP to 65% by 2030. It also saw the signing of a number of agreements in key sectors under the Kingdom’s economic diversification plan. Here’s what you need to know:
#1- The share of local content spending across the PIF’s portfolio came in at 46% last year, Jerry Todd, who heads the fund’s National Development Division, said yesterday during a session. He said the PIF aims to reach a local content spending target of 60% by 2025. “There’s a challenge around shifting local content from only a procurement to discussion to a design and engineering discussion,” Todd said, revealing that the fund will launch a “design competition” to help spread awareness on shifting to local materials. “We need that awareness not only with architects and engineers but also with the client themselves,” he said.
#2- PIF-owned Diriyah Gate Development Authority (DGDA) signed two agreements worth over SAR 2.7 bn on the sidelines of the forum, its CEO Jerry Inzerillo told Arab News. The first agreement, worth SAR 2 bn, was signed with local firm Al Ayuni Investment and Contracting Co for infrastructure development in the area. A second SAR 700 mn agreement was signed with Saudi Constructioneers to set up Ritz-Carlton residences in Diriyah, he said.
DGDA will launch 11 new projects in the tourism, entertainment and leisure sectors by the end of the year, Inzerillo said. The projects include the King Salman Boulevard, which is dubbed the Kingdom’s version of the popular Champs-Elysees in Paris. Inzerillo said the DGDA plans to award over USD 3 bn in contracts focused on infrastructure and design engineering.
#3- The PIF’s Rua Al Madinah Holding signed two contracts worth over SAR 300 mn with unnamed “global expert houses” for the development of a number of hotels in its landmark project in Madinah.
#4- The PIF really loves tourism: PIF-owned tourism investment company Asfar signed three MoUs with the private sector to explore potential tourism investments in the Eastern Province, Asharq Al Awsat reported. They also plan to launch a multi-purpose tourism project in Al Ahsa — the largest governorate in the Eastern Province.
#5- Roshn’s Al Fulwa development is getting a push: PIF’s real estate subsidiary Roshn signed agreements and contracts with Al Ayuni Investment and Contracting, local contractor Ansab and Saudi Ceramics to design and set up residential units and utilities to its integrated development Al Fulwa located south of Hofuf.
#6- And coffee beans: The PIF’s Saudi Coffee Company (SCC) signed nine agreementswith global and local partners aimed at boosting the local coffee industry. Those include a purchasing contract with local contractors to set up necessary infrastructure for farm lands to harvest coffee beans in Jazan. It also signed an agreement with Saudi Argo for advanced irrigation solutions to help it lower water consumption at its farms.
Your next cup of coffee could be roasted by the SCC: The SCC also signed purchasing contracts with Barns, Bon Cafe, Al Hokair Group and others to supply them with locally produced specialty coffee.
Also from the form:
- PIF-owned King Abdullah Financial District (KAFD) signed five agreements focused on boosting infrastructure, hospitality, and telecom in the financial hub.
- PIF signed a MoU with the Real Estate General Authority to establish four new centers focused on leveraging technology and capacity building to boost the real estate sector.
- The PIF launched a new contractor financing program to provide flexible financing solutions to contractors working with the fund’s subsidiaries.
