Saudi Arabia’s sovereign wealth fund, the Public Investment Fund (PIF), has solidified its strategic presence in the global market by entering into a share purchase agreement to acquire a 10 percent stake in London’s Heathrow Airport. The deal, valued at $3 billion, involves the purchase from Spanish infrastructure giant Ferrovial, which has held a stake in the airport since 2006. PIF will acquire the stake in FGP TopCo, the holding firm of Heathrow Airport Holdings, subject to regulatory approvals. This move aligns with PIF’s broader strategy of making long-term investments across diverse sectors, marking the end of Ferrovial’s investment in the UK airports’ operator.
In a press statement, PIF expressed its satisfaction with the investment, emphasizing Heathrow’s status as a world-class airport and a crucial gateway to the global economy. The acquisition follows PIF’s pattern of economic diversification efforts for Saudi Arabia, with the fund establishing 70 companies since its inception. Notably, the annual statement released in October highlighted the creation of over 181,000 jobs in 2022 by companies owned by PIF. The fund’s recent initiatives include the launch of Tasaru, dedicated to developing local supply chain capabilities for the automotive and mobility industry, and substantial investments in the future mobility sector, including the establishment of Saudi Arabia’s first national electric vehicle brand, Ceer, and collaborations with Foxconn and US-based Lucid Motors.