The stake has been acquired via subscribing to newly issued shares. Credit: PIF.

Saudi Arabia’s Public Investment Fund (PIF) has acquired a 30% stake in Masdar for Building Materials Company, a building and construction materials trading and distribution company.

The stake has been acquired by subscribing to newly issued shares via a capital increase.

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This investment by PIF will aid Masdar in integrating digital technology into its operations, thereby improving customer experience and enhancing operations.

Established in 1971, Masdar manages a network of 105 branches across 29 cities in Saudi Arabia.

The capital infusion from PIF will also facilitate Masdar’s expansion plans, allowing the company to forge new partnerships.

The move will further increase the involvement of local suppliers and businesses in the domestic building materials market, aligning with the goals of the wider Saudi Vision 2030.

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The country’s construction and building components and services sector is deemed a priority due to its substantial contribution to the national economy.

By promoting private sector engagement, PIF aims to solidify Saudi Arabia’s standing in the sector.

The fund’s objectives include strengthening local supply chains, prioritising strategic products and services, and localising advanced technologies and expertise to meet both current and future market demands.

PIF Construction and Building Materials – MENA Investments head Ahmad AlGhamdi said: “The investment in Masdar will contribute to reinforcing local supply chains by unlocking capabilities in the construction and building components and services sector, one of PIF’s strategic sectors.

“The investment will also support the development of the [domestic] building materials distribution network, increase access to value-added services, and accelerate digital transformation through the adoption of the latest technologies and solutions.”

Masdar CEO Faisal Al-Muhaidib said: “As a leading building and construction materials company in Saudi Arabia, we look forward to partnering with PIF to play a vital role in supporting the growth and development of the sector by scaling up our capabilities and meeting current and upcoming demand.

“The construction and building components and services sector is one of the most important and promising sectors in Saudi Arabia, and PIF’s investment will accelerate and unlock Masdar’s growth, enabling us to scale our capabilities and maintain our leading position by offering products via our exceptional distribution network.”