Saudi sovereign wealth fund mulling bigger stake in ACWA

Saudi Arabia‘s main sovereign wealth fund is considering buying a stake in ACWA Power, which operates power and water plants around the world.

Reuters reports that Public Investment Fund (PIF) already owns 13.7 per cent in Riyadh-based ACWA through a subsidiary but is now taking advice on upping that stake.
ACWA Power logo
Talks are still at a preliminary stage, and neither party has appointed an advisor, two unnamed sources told the news agency.

ACWA is an investor, developer, co-owner and operator of a portfolio of plants in Europe, Asia and Africa that generate more than 23 GW of power and produce 2.5 million cubic metres of desalinated water a day.

PIF’s investment strategy aims to help the government diversify the Saudi economy away from oil into power and other sectors.

Central to the plan is greater involvement by the private sector in the Saudi economy, including in the power sector: it has called on raising the percentage of power plant electricity generation through strategic partners to 100 per cent from 27 per cent currently.

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