PIF Acquires Majority Stake in Saudi's TAWAL for $5.85 Billion | Kanebridge News
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PIF Acquires Majority Stake in Saudi’s TAWAL for $5.85 Billion

Saudi Arabia’s Public Investment Fund (PIF) will acquire a 51% stake in TAWAL from stc Group for $5.85 billion, expanding its telecommunications infrastructure.

Wed, Apr 24, 2024 4:03pmGrey Clock 2 min

Saudi Arabia’s Public Investment Fund (PIF) has entered into definitive agreements with Saudi Telecommunications Company (stc Group) to acquire a 51% stake in Telecommunication Towers Company Limited (TAWAL) for an enterprise value of $5.85 billion.

TAWAL, renowned as the largest telecommunications infrastructure company in the region, will soon become part of a major strategic overhaul involving PIF and stc Group.

The plan involves merging TAWAL with Golden Lattice Investment Company (GLIC), where PIF holds a majority share. This merger is expected to create the largest regional entity in the telecommunication infrastructure sector, with the new entity being 54% owned by PIF and 43.1% by stc Group, while the remaining shares will be held by GLIC minority shareholders.

Raid Ismail, Head of MENA Direct Investments at PIF

Completion of these transactions is anticipated in the second half of 2024, pending all necessary regulatory approvals. Raid Ismail, Head of MENA Direct Investments at PIF, highlighted the significance of this move for the telecommunications industry in both Saudi Arabia and the wider region.

He noted that this consolidation would enhance the telecommunications sector’s ability to connect communities and support business growth, aligning with PIF’s strategy and the goals of Saudi Vision 2030.

Motaz Alangari, Group Chief Investment Officer of stc Group

Motaz Alangari, Group Chief Investment Officer of stc Group, echoed these sentiments, stating that the agreements are pivotal in stc Group’s efforts to foster growth and maximize sustainable value by recycling capital while retaining ownership in strategic assets. This strategy, according to Alangari, supports stc Group’s role in accelerating digital transformation in Saudi Arabia and the broader region.

The newly formed entity is set to enhance consumer experience and network coverage significantly, improving connectivity and mobile internet speeds by consolidating Saudi Arabia’s tower assets.

This development is not only expected to drive operational efficiencies but also foster wider innovation in the telecommunication sector globally. The new merged entity will own approximately 30,000 mobile tower sites and is projected to become one of the largest tower companies worldwide with estimated annual revenues of about $1.3 billion.

This strategic move follows TAWAL’s acquisition of infrastructure assets in Bulgaria, Croatia, and Slovenia, thereby extending its reach and reinforcing its position as a regional powerhouse in the telecommunications tower industry.

The consolidation is part of a broader ambition by PIF and stc Group to strengthen and integrate the Saudi telecommunication infrastructure sector, thereby enhancing Saudi Arabia’s capabilities as a globally competitive hub for technology, media, and telecommunications.


Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’

Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual

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Preparatory Work for UAE to Oman Hafeet Rail Project Commences at Full Speed

Preparations have begun on the transformative UAE to Oman Hafeet Rail network, revealing significant construction details during a site visit.

Thu, May 16, 2024 3 min

The $3bn Hafeet Rail project between the UAE and Oman will feature 60 bridges and a 2.5km tunnel, making it an “architectural and engineering marvel,” according to CEO Ahmed Al Musawa Al Hashemi.

Hafeet Rail has announced that preparatory work is moving full speed ahead for constructing the transformative railway link between the UAE and Oman. This announcement was made during a site visit attended by key officials, members of the Asyad and Hafeet Rail executive management teams, project contractors, and consultants.

Key Highlights

During the visit, attendees were introduced to the main components of the project, including passenger, repair, and shipping stations, as well as major bridges and tunnel sites.

The Hafeet Rail project is set to play a very important role in enhancing local and regional trade, unlocking new opportunities in the infrastructure, transportation, and logistics sectors, and fostering economic diversification. It will also strengthen bilateral relations between the UAE and Oman.

The project will involve constructing 60 bridges, some reaching heights of up to 34 meters, and tunnels extending 2.5 kilometres. The Hafeet Rail team showcased the latest rail technologies and innovative engineering and architectural solutions designed to navigate the challenging geographical terrain and weather conditions while maintaining high standards of efficiency and safety.

The rail network will boost various industrial sectors and economic activities and significantly impact the tourism industry by facilitating easier and faster travel between the two countries.

Ahmed Al Bulushi, Asyad Group Chief Executive Asset, noted that the project’s rapid progress reflects the commitment of the UAE and Oman to developing and realizing the project’s multifaceted benefits.

Investment and Future Impact

Al Bulushi added that investments in developing local capabilities and expertise in rail-related disciplines over recent years have enabled the project to reach the implementation phase successfully under the leadership of highly efficient and professional national talent.

Hafeet Rail’s CEO Ahmed Al Musawa Al Hashemi emphasized, “The commencement of preparatory works for construction is a testament to the robust synergy between all parties involved in both nations, achieving this milestone in record time. We are confidently laying down the right tracks thanks to the shareholders of Hafeet Rail and the expertise of local companies in Oman and the UAE, alongside international partners.”

During the site visit, the visitors explored some of the key preparatory sites, including Wadi Al Jizi, where a 700-meter-long bridge towering 34 meters will be constructed. This ambitious project is envisioned as an architectural and engineering marvel in a complex geographical landscape.

Future phases will require more collaboration, with a continued focus on quality, safety, and environmental considerations in line with the international industry best practices.

The Hafeet Rail project represents the first-of-its-kind railway network linking two Gulf nations, marking a significant shift in regional goods transportation. This efficient and reliable transportation option will reduce dependence on slower and less sustainable road transport.

Hafeet Rail promises a 40% reduction in shipping costs and a 50% in transit times compared to traditional land transportation methods, as it will be connecting five major ports and several industrial and free zones in both countries.

This shift will reduce reliance on road transport by cars and trucks and promote more sustainable shipping practices. The establishment of the railway network will also create significant opportunities for SMEs in construction, engineering, and logistics support, acting as a catalyst for economic growth and innovation within the domestic economy.

By linking major ports, the Hafeet Rail project will enable local SMEs to import, export, and distribute their products more effectively, enhancing their market reach and global competitiveness.


Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’

Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual

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