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Saudi Arabia’s Public Investment Fund (PIF) has entered into a strategic agreement with Alkhorayef Petroleum, solidifying its commitment to invest in the company. This collaboration is expected to foster growth and development within the energy sector, aligning with the broader economic goals of Saudi Arabia.

This investment will materialize through a capital increase and a new share subscription, resulting in PIF acquiring a substantial 25% stake in Alkhorayef Petroleum. Alkhorayef Group, the parent company of Alkhorayef, will retain the majority ownership with a 75% stake.

The investment is set to occur through a capital increase and a new share subscription, enabling the sovereign wealth fund to secure a 25% ownership stake.

“This investment demonstrates PIF’s broader efforts to develop Saudi Arabia’s equipment and service landscape and support the growth of promising private sector companies to further develop the industrial ecosystem and increase export revenues,” said PIF.

“This investment is expected to enable Alkhorayef Petroleum’s growth strategy in local and international markets and further expand its manufacturing output while also focusing on innovative R&D in high-growth areas,” said Muhammad Aldawood, Head of Industrials and Mining Sector in MENA Investments at PIF.

Alkhorayef Petroleum specializes in providing solutions for oil and gas production optimization and is the primary manufacturer of electric submersible pumps in the Gulf region. The company’s expertise extends to artificial lift, wireline services, equipment, and early production facilities.