You are currently viewing PIF to Sell Thiqah to Elm in $907 Million Deal to Strengthen Saudi Arabia’s ICT Sector

PIF to Sell Thiqah to Elm in $907 Million Deal to Strengthen Saudi Arabia’s ICT Sector

Prime Highlights: 

Elm will acquire 45,000 shares of Thiqah, each valued at SR1,000 ($266.56), marking a full acquisition of Thiqah’s share capital. 

The transaction supports Saudi Vision 2030 by advancing digital transformation, fostering innovation, and creating high-skilled jobs within the ICT industry. 

Key Background: 

Saudi Arabia’s Public Investment Fund (PIF) has agreed to sell Thiqah Business Services Co., a subsidiary of PIF, to digital solutions provider Elm in a strategic move valued at $907 million. The acquisition aims to bolster the Kingdom’s information and communications technology (ICT) sector, which is vital for driving economic diversification and digital transformation under Saudi Vision 2030. 

The deal, which follows discussions that began in 2023, involves the purchase of 45,000 shares of Thiqah, each valued at SR1,000 ($266.56), representing the company’s entire issued share capital. Elm, a leader in digital solutions, plans to integrate Thiqah’s capabilities into its operations, enhancing its position in the competitive ICT market. 

According to Mohammad Abdulaziz Al-Omair, CEO of Elm, the acquisition will improve operational efficiency, reduce costs, and increase profitability for both companies. It is expected to provide strategic advantages, including the delivery of advanced smart services, product innovation, and greater scalability, all of which will meet evolving market demands and client needs. 

The deal is expected to play a crucial role in achieving the objectives of Vision 2030, particularly in advancing digital transformation, fostering innovation, and creating high-skilled jobs within the ICT sector. It aligns with PIF’s broader strategy of promoting economic diversification and supporting the development of a knowledge-based economy. 

Shahd Attar, Head of Technology and Media, MENA Investments at PIF, emphasized that the sale would further strengthen the Kingdom’s ICT ecosystem, drive technological localization, and support the growth of national champions in key sectors. The transaction also aligns with PIF’s long-term objectives of enhancing Saudi Arabia’s global competitiveness and expanding investments in high-impact industries. 

This move comes as part of PIF’s ongoing efforts to create value from Saudi assets, contributing to the broader economic transformation of the Kingdom. Since 2015, PIF has invested in 99 companies, focusing on strategic sectors like technology, health, energy, and entertainment, with a clear emphasis on fostering innovation and sustainable growth.