Saudi Arabia’s Public Investment Fund (PIF) has made a significant move in the steel industry, acquiring major steel giants in a bid to fuel industrial growth in the country. The sovereign wealth fund announced its acquisition of a 100 percent shareholding in the Saudi Iron and Steel Company (Hadeed) from the Saudi Basic Industries Corporation (SABIC). Additionally, as part of a cross-conditional share exchange agreement, Hadeed will also acquire a 100 percent shareholding in AI Rajhi Steel Industries Company from Rajhi Invest. These strategic deals aim to bring together PIF’s financial capabilities and industry experience with the technical and commercial expertise of Hadeed and Rajhi Steel, ultimately establishing a strong presence in Saudi Arabia’s steel sector.
According to Deputy Governor and head of MENA Investments at PIF, Yazeed A. Al-Humied, these transactions align with PIF’s broader efforts to accelerate the country’s industrial development. Moreover, it will contribute to meeting Saudi Arabia’s growing demand for steel and enhancing its steel production capabilities. The consolidation of Hadeed and Rajhi Steel is expected to create a national champion in the steel sector, boosting the Kingdom’s economic growth.
These acquisitions are part of PIF’s comprehensive strategy to focus on 13 strategic sectors, including metals and mining. By investing in these sectors, PIF aims to diversify the Kingdom’s economy and achieve the goals set out in Saudi Vision 2030. The transactions will not only strengthen the steel sector but also foster growth in key downstream industries such as local construction, automotive, utilities, renewables, transportation, and logistics.
This development is a significant step towards building a robust industrial base in Saudi Arabia. The combined expertise of PIF, Hadeed, and Rajhi Steel will play a vital role in meeting the country’s steel demands, supporting infrastructure development, and enhancing competitiveness in both domestic and international markets. It highlights Saudi Arabia’s commitment to become a key player in the global steel industry, contributing to economic diversification and job creation.
In conclusion, PIF’s acquisition of major steel giants, Hadeed and Rajhi Steel, signifies a significant milestone in Saudi Arabia’s industrial growth. By leveraging PIF’s financial capabilities and industry experience, along with Hadeed and Rajhi Steel’s technical and commercial expertise, the country aims to become a key player in the steel sector. These transactions align with PIF’s broader strategy to accelerate industrial development, meet the growing demand for steel, and foster growth in key downstream sectors. Saudi Vision 2030’s goals can be achieved through such initiatives, promoting economic diversification and solidifying the Kingdom’s position in the global market.