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Saudi Arabia’s Public Investment Fund (PIF) has signed an agreement to invest in Alkhorayef Petroleum, an electric submersible pump manufacturer.
The investment will be through a capital increase and new share subscription which will see the sovereign wealth fund own a 25% stake.
Alkhorayef’s parent company, Alkhorayef Group, will retain 75% stake after the transaction, the sovereign wealth fund said in a statement.
“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,” PIF said.
Alkhorayef Petroleum is the provider of oil and gas production optimisation solutions and the only maker of electric submersible pumps in the Gulf. It specialises in artificial lift, wireline services and equipment, and early production facilities.
“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.
(Writing by Cleofe Maceda; editing by Seban Scaria)
