Skip to content Skip to Search
Skip navigation

PIF investment to boost local energy sector supply chains

PIF will acquire a 25% stake in Alkhorayef Petroleum through capital infusion and subscription to new shares Reuters/Ahmed Jadallah
The average realised prices stood at $51 per barrel for condensate in 2023

Saudi Arabia’s Public Investment Fund (PIF) has signed an agreement to invest in Alkhorayef Petroleum, a Gulf-based manufacturer of electric submersible pumps and equipment critical to oil and gas production

The deal is part of its effort to improve supply chains in the energy services sector in Saudi Arabia.

The Saudi sovereign wealth fund will acquire a 25 percent stake, PIF said in a statement.

Alkhorayef Group, the parent company and current shareholder of Alkhorayef Petroleum, will retain the remaining 75 percent stake.

The investment will contribute to expanding Alkhorayef Petroleum’s business, which provides services in the Gulf, Africa and South America. It will further improve supply chains in the energy services sector in Saudi Arabia.

“This investment is expected to enable Alkhorayef Petroleum’s growth strategy in local and international markets and further expand its manufacturing output,” said Muhammad Aldawood, head of industrials and mining sector in Mena investments at PIF.

No financial details were shared and the agreement is subject to regulatory approvals.

The fund last month signed a joint venture agreement with Pirelli of Italy to build a tyre manufacturing facility in the kingdom at an investment of $550 million.

In February, PIF spent $1.3 billion buying “significant” minority stakes in four local construction companies to help the local construction industry expand capacity, improve supply chains, accelerate the adoption of advanced technologies and support the Vision 2030 economic diversification plan. 

Latest articles

An artist's impression of part of the Diriyah Square development

Diriyah Square planned for historic Riyadh district

A public space featuring 400 retail outlets and 100 restaurants and cafes is planned for the historic Riyadh district of Diriyah. Diriyah Square will be announced next week at the World Retail Congress in Paris and aims to attract a combination of international retail brands and local artisans.  Diriyah Gate Development Authority group CEO Jerry […]

Nature, Undersea cables account for as much as 90 percent of Europe-Asia telecommunications, Water

Iraq and Kuwait team up for European telecom corridor

Iraq’s Informatics and Telecommunication Public Company, a division of the Ministry of Communications, has signed an agreement with Kuwait’s Zajil Telecom to create a telecommunications corridor from the Gulf region to Europe, transiting through Iraq and Turkey. The new route will pass through Iraqi sea and land ports. Iraq’s minister of communications Hayam Al-Yasiri said […]

Passengers at Beijing Capital International Airport. Air China will fly from the airport to Riyadh three times a week.

Third Chinese airline to launch flights to Saudi Arabia

Air China is set to begin flights to Riyadh in May, becoming the third Chinese airline to establish a route to Saudi Arabia. It joins China Southern and Eastern Airlines in connecting China with the kingdom.  Air China’s Airbus A330-300 will serve the Beijing-Riyadh route three times a week. The expansion in capacity between the […]

Turkish crude steel output rose 25% year on year to 3.2 million tonnes in January

Turkish steel in the black but EU rules rankle

Turkey’s steel industry has rebounded strongly from a weak 2023, despite facing new emissions standards and competition for important markets.  Crude steel output rose 25 percent year on year to 3.2 million tonnes in January, with domestic consumption of finished steel reaching 3.5 million tonnes, a 20 percent increase.  Exports were also up, increasing 23 […]