PIF and TMG target new real estate projects in Saudi Arabia

The Public Investment Fund (PIF) and Saudi unit of Egypt’s Talaat Moustafa Group (TMG) have agreed to evaluate potential mixed-use real estate developments in the kingdom.

The two companies will study opportunities within PIF-backed projects in Saudi Arabia across residential, commercial, hospitality and retail segments, in addition to large-scale urban communities.

The collaboration is part of PIF’s initiative to diversify Saudi Arabia’s economy by building regional and international partnerships, attracting foreign investments and developing priority industries, the sovereign wealth fund said in a statement.

PIF is spearheading several giga-projects and residential developments in line with Vision 2030, aimed at increasing housing ownership by Saudi citizens to 70 percent.

The partnership will also create a platform for additional investors to join future phases of projects and expand private sector roles as investors, partners and suppliers.

In April, PIF announced a new strategy with a larger focus on private sector involvement and increasing returns on investments.

The plan outlines six sectors in which the fund will focus investments: tourism; urban development; advanced manufacturing; industrials and logistics; clean energy, water and renewables infrastructure; and Neom.

Further reading:

• IMF predicts slower-growing but resilient Saudi economy
• PIF explores merging logistics assets into single entity
• Saudi PIF raises record $7bn in debt

It is the latest in TMG’s international expansion plans. This month, Iraq granted it a licence to build a smart green city near its capital, Baghdad.

TMG, which specialises in hospitality and large-scale gated communities, is listed on the Egyptian Stock Exchange.

Its largest shareholder is TMG for Real Estate and Touristic Investments, a company with 60 percent held by the Talaat Moustafa Family and 40 percent by the Saudi Bin Laden family.

Shares of TMG closed nearly 2 percent lower at EGP94.50 on Sunday.