Saudi PIF transfers food and agro project stakes to SALIC

By Rahul Vaimal, Associate Editor
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Saudi Arabia’s sovereign wealth fund, The Public Investment Fund (PIF) has transferred its stake in leading dairy firm Almarai, one of the largest agricultural and food-processing share stock companies in the region, the National Agricultural Development Company (NADEC) and the Saudi Fisheries Company to the Saudi Agricultural and Livestock Investment Company (SALIC). 

SALIC, a wholly-owned subsidiary of the sovereign wealth fund will now own a 16.32 percent stake in Almarai, 20 percent stake in National Agricultural Development Company (NADEC) and 39.99 percent stake in the Saudi Fisheries Company.

The transfer of ownership will allow PIF to consolidate its ownership through specialized entities that cater to a particular vertical.

SALIC, an organization that manages PIF’s investment in the food and agriculture sector, will now be able to function seamlessly towards promoting in the sector while leveraging synergies within PIF’s portfolio.

The firm which has extensive experience in managing food and agriculture investments has been instrumental in securing food security in the Kingdom amid the pandemic, reiterating the importance of supporting the stability of food supply chains.

The transfer is also expected to enable PIF to utilize SALIC’s strategic partnerships, technological and logistical capabilities.

The transaction is in line with PIF’s Strategy 2021-2025 which focuses on unlocking the capabilities of promising non-oil sectors to enhance the Kingdom’s efforts to diversify revenue sources, including in the food and agriculture sector.

The Fund and its subsidiaries aim to contribute $320 billion to non-oil GDP cumulatively, by the end of 2025, through growth opportunities for strategic and vital sectors in the Kingdom.

Related: Saudi Arabia strives for $420bn foreign investments in infrastructure, transportation