Saudi Arabia's Public Investment Fund (PIF) announced Wednesday it will sell Thiqah, a business services and digital solutions firm, to Elm Company, a Saudi digital security firm, in a transaction valued at $907 million.

Driving Innovation and Localizing Technology

The deal, part of the Saudi Vision 2030 economic growth plan, aims to strengthen the information and communication technology (ICT) sector, foster high-skilled job creation, and advance digital transformation. The sale will "maximize the local value chain, drive innovation, localize technology, and enhance technical skills," according to a joint statement from PIF and Elm.

"PIF is committed to enabling the creation of national champions that contribute to the Saudi economy's growth," said Shahd Attar, PIF's head of technology and media for the Middle East and North Africa. "The sale of Thiqah to Elm will enhance the ICT sector's vital role, localize technology, and spur innovation."

Strategic Priorities for ICT

PIF emphasized that the ICT sector is central to its broader strategy, enabling other industries such as entertainment, financial services, healthcare, transport and logistics, and renewable energy. With $925 billion in assets under management and 99 portfolio companies, PIF is among the largest sovereign wealth funds globally.

Elm, a PIF portfolio company, sees the acquisition as a pivotal step. "This transaction enhances integration, rationalizes spending, and increases profitability," said Mohammad Abdulaziz Alomair, CEO of Elm. "It will enable the creation of advanced national smart services to meet market demands and client needs while achieving economies of scale."

Alignment with Vision 2030

The sale aligns with the goals of Vision 2030 by boosting technical capabilities and fostering innovation in Saudi Arabia. The integration of Thiqah's services into Elm is expected to facilitate innovative operations and provide cost advantages.

While counsel details for the transaction were unavailable, the deal underscores PIF's strategy to position the ICT sector as a cornerstone of Saudi Arabia's digital and economic future.