The Saudi sovereign wealth fund, the Public Investment Fund (PIF), announced significant investments in the kingdom’s construction sector at its Private Sector Forum this week. These include a 30% stake in Masdar Building Materials Co. and a $1.5 billion contract to develop Riyadh’s SEDRA community.

Announced at the PIF’s Private Sector Forum, held in Riyadh, the Masdar acquisition aligns with Saudi Arabia’s Vision 2030, which emphasizes increasing private sector participation in economic diversification.

PIF’s investment aims to bolster the kingdom’s leadership in the construction, building components, and services, addressing current and future demand. The fund’s strategy includes strengthening local supply chains, prioritizing strategic products and services, and localizing advanced technologies.

Ahmad Al-Ghamdi, head of construction and building materials, MENA Investments at PIF, said the Masdar investment will enhance capabilities in a key strategic sector.

“The investment will also support the development of the building materials distribution network, improve access to value-added services, and drive digital transformation by adopting advanced technologies,” Al-Ghamdi added.

Masdar CEO Faisal Al-Muhaidib welcomed the partnership, emphasizing its role in scaling up the company’s operations to meet growing market demand. He highlighted that PIF’s backing would accelerate Masdar’s expansion and solidify its market leadership.

In addition to the Masdar investment, PIF-owned real estate developer ROSHN signed contracts worth $400.5 million to develop the SEDRA-integrated residential community. These contracts include a $173.3 million deal with SARH ATTQNIA Co. for 968 housing units and an SR720 million agreement with Chinese construction company HCE for luxury units within the eight-phase project.

ROSHN launched sales for SEDRA’s third phase in October 2023, offering 3,438 new residences and various amenities. The SEDRA project is known for its modern communities and integrated amenities, contributing to Vision 2030 goals of enhancing urban and sustainable living.