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PIF ramps up stake in ACWA Power from 33.6% to 50%

ACWA aims to achieve its target of more than $10 billion in new investments this year

The Kingdom of Saudi Arabia’s sovereign wealth fund Public Investment Fund (PIF) has ramped up its stake in ACWA Power from 50 percent to 33.6 percent.  The move by PIF comes at a time when it is looking to boost the renewable energy sector in the Kingdom.

The PIF has also unveiled plans to increase its stake in ACWA Power from 29.8 percent to 40 percent last year. It is reported that ACWA Power is gearing up to roll out its IPO and leads a consortium that will carry out a renewable power-based utilities development for the Red Sea tourism project.

PIF told the media, “We believe that ACWA Power will play a significant role in both driving and diversifying economic growth in the future — while also providing enduring commercial return for the people of the kingdom.”

ACWA seeks to achieve its target of more than $10 billion in new investments this year amid the outbreak of the pandemic that has jeopardised economies at a large scale. The company is committed to carry out its planned IPO. The IPO launch, however, is subject to market conditions.

The sovereign fund will boost the Kingdom in building an international portfolio of investments. It will help the Kingdom to reduce its dependence on oil and allow local investors to carry out projects across the Kingdom. 

The PIF has been thriving in the last few years as the Kingdom sees a good relationship with countries such as India, the US and Israel.

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