Skip to content Skip to Search
Skip navigation

PIF and Seera fail to reach agreement on investment

Tourists in front of the Jabal Al-Mawaqi rock art in Saudi Arabia Eric Lafforgue/Hans Lucas via Reuters Connect
Tourists in front of the Jabal Al-Mawaqi rock art in Saudi Arabia

Saudi travel major Seera Group Holding has terminated plans for the Public Investment Fund (PIF), the kingdom’s sovereign wealth fund, to invest in its subsidiary, Almosafer Travel and Tourism Company.

The termination comes after the two companies failed to reach an agreement, Seera said in a statement to the Saudi bourse.

The statement clarified that Almosafer was fully self-sufficient and profitable, having achieved a net booking value of SAR5.7 billion ($1.52 billion) and Ebitda of SAR49 million during the first nine months of 2023.

In addition, Almosafer is expected to surpass its “historical” performance levels and exceed SAR10 billion in booking value by 2025. 

Seera has already announced plans to list its subsidiaries, including Almosafer.

Last September, PIF sought a 30 percent shareholding in Almosafer by investing SAR1.5 billion in new shares in the travel company.

The investment amount was based on a preliminary pre-money enterprise value of Almosafer and its subsidiaries of SAR3.7 billion. 

As part of the reorganisation, Seera’s destination management company, Discover Saudi, and its Hajj and Umrah business-to-business operator Mawasim, would fall under the umbrella of Almosafer. 

The Seera unit planned to use the new capital to scale its inbound, outbound, religious and domestic tourism operations. 

Seera turned to a profit of SAR148 million in the first nine months of 2023, against a loss of SAR79 million a year ago, following a rebound in global tourism.

Saudi Arabia hosted more than 100 million tourists last year, who collectively spent SAR100 billion, tourism minister Ahmed Al-Khateeb has said.

Latest articles

The funding of Midas is among the 'biggest ever' Series A fund raise by a Turkish fintech

Turkish fintech Midas raises $45m for new products

Turkish fintech startup Midas has raised $45 million in equity funding to expand its services and launch new products. The new products include cryptocurrency trading, mutual funds and savings accounts. The funding is among the “biggest ever” Series A fund raise by a Turkish fintech and comes less than three years after Midas was launched.  […]

Plenary founder and director Paul Oppenheim, Plenary CEO David Lamming and Ahmed Ali AlShamsi, director of energy and utilities at ADQ

ADQ buys stake in Australian investment company

The UAE’s investment fund ADQ has acquired a 49 percent stake in Australian infrastructure investor Plenary Group as part of its expansion drive. The Abu Dhabi state-backed company will acquire all shares currently owned by Canadian pension fund Caisse de dépôt et placement du Québec, which will continue to invest in a range of Plenary’s […]

Over 400 global food brands are taking part in the SaudiFood Manufacturing show in Riyadh this month

Saudi Arabia’s food factory count rises to 1,300

The total number of food factories operated by the Saudi Authority for Industrial Cities and Technology Zones (Modon) has reached 1,300, across 36 cities. The increase signifies the growing capacity of the domestic food industry and its localisation efforts, the state-run Saudi Press Agency reported. Food industry companies have recorded a growth rate of more […]

Garden, Nature, Outdoors

UAE commits $50m to development fund

The UAE has committed $50 million to the second phase of the Lives and Livelihoods Fund 2.0 (LLF 2.0), a multi-donor initiative targeting sustainable economic development in the Islamic Development Bank’s (ISDB) 57 member countries. The funding will be deployed by LLF 2.0 to support critical projects in health and infectious diseases, agriculture, and social infrastructure in low […]