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The Public Investment Fund (PIF), Saudi Arabia’s sovereign wealth fund, one of the world’s most active sovereign wealth funds, has been diversifying its portfolio with investments in sports such as football and golf to telecom, pharmaceutical, and electric vehicle manufacturing.
The fund, aiming to reach $2 trillion in assets by 2030, has become a major force in international investments, and its recent investments include acquiring a 10% stake in London’s Heathrow Airport from Spanish infrastructure giant Ferrovial.
In a statement, the PIF mentioned that it will acquire a stake in FGP TopCo, the holding firm of Heathrow Airport Holdings. Ardian, a private equity fund, will acquire another 15% share in the parent company.
Ferrovial has owned the stake since 2006, and this new deal is worth $3 billion.
PIF said that the transaction is still subject to regulatory approvals, but once approved, it will terminate Ferrovial’s investment in Heathrow Airport.
“PIF is pleased to be investing in Heathrow, a world-class airport, which acts as a key gateway to the world. PIF’s investment in Heathrow is in line with its strategy to support the business as a long-term partner,” said PIF in a press statement.
While Heathrow remains a major global gateway, its growth prospects have been hampered by the lack of progress on a third runway.
This limitation on capacity has allowed airports in destinations like Doha and Dubai to expand operations, often operating around the clock aggressively.
Meanwhile, Prince Alwaleed bin Talal’s investment company, Kingdom Holding, has increased its ownership in Citigroup to 2.2% upon acquiring a bank stake of $450 million. Prior, the company owned 1.6% of the Wall Street lender, as noted in a filing.