PIF, Elm Sign $907M Deal for Thiqah Acquisition

The Public Investment Fund (PIF) and Elm, a leading Saudi digital solutions company, signed a share sale and purchase agreement on January 22, 2025, under which Elm will acquire Thiqah Business Services Company in a deal valued at $907 million (SAR3.4 billion), according to an official announcement released through the Saudi Press Agency (SPA). The transaction, subject to regulatory approvals and the satisfaction of certain conditions, marks one of the most significant consolidations in the Kingdom’s information and communication technologies (ICT) sector and underscores the accelerating momentum of Saudi Arabia’s digital economy agenda.

The agreement positions Elm to broaden its portfolio of smart technology solutions for business services, while PIF continues to shape a dynamic national ICT ecosystem capable of competing on the global stage. For international observers, the deal offers a clear signal that Saudi Arabia is deliberately building technology champions at home rather than merely importing digital capacity from abroad. It also reinforces the Kingdom’s ambition to localize advanced technologies and knowledge, create high-skilled employment, and deepen the contribution of the digital sector to national economic output. The announcement was made through official Saudi channels, reflecting the transparency and coordination that characterize the Kingdom’s modernization program.

Context and Background

Why does a single corporate transaction in Riyadh command attention from investors and technology analysts far beyond the Gulf region? The answer lies in the scale and strategic intent behind Saudi Arabia’s digital transformation. The ICT sector has been designated among PIF’s strategic priority investment sectors, recognized as a key enabler of other vital industries including entertainment, financial services, healthcare, transport and logistics, and utilities and renewables. By strengthening a national player such as Elm, the Kingdom is effectively upgrading the digital backbone that supports every other pillar of its economic diversification strategy.

Elm has long been a prominent name in Saudi Arabia’s technology landscape, providing digital solutions to government entities, businesses, and individuals. Thiqah Business Services Company specializes in smart technology solutions for business services, and its integration into Elm is expected to create a combined entity with greater scale, broader capabilities, and enhanced competitiveness. The share sale and purchase agreement follows a period in which PIF has actively cultivated national champions across multiple sectors, seeking to ensure that the value generated by Saudi Arabia’s transformation remains within the domestic economy and benefits Saudi talent and enterprises.

The timing of the agreement is significant. Saudi Arabia is pressing forward with an ambitious digital agenda that touches nearly every facet of public and private life, from e-government services to cloud computing, cybersecurity, and artificial intelligence. Consolidating complementary technology firms is a logical step in building the depth required to serve a rapidly digitizing economy and to export Saudi technological expertise regionally and internationally.

Key Details of the Agreement

What exactly does the transaction entail, and who are the principals driving it forward? Under the agreement, Elm will acquire Thiqah Business Services Company from PIF in a deal valued at $907 million (SAR3.4 billion). Completion is expected once regulatory approvals are obtained and certain conditions are satisfied under the agreement. The transaction was announced through a PIF press release carried by the Saudi Press Agency, underscoring its status as an official, verified development rather than market speculation.

Shahd Attar, Head of Technology and Media, MENA Investments, at PIF, said: “PIF is committed to enabling the creation of national champions which contribute to driving the development and growth of the Saudi economy. PIF’s sale of Thiqah to Elm will contribute to enhancing the vital role of the ICT sector and will strengthen efforts to localize technology and drive innovation.” Her statement frames the deal not merely as an asset transfer but as a deliberate act of ecosystem building, in which PIF’s role as investor and enabler helps bring about companies of genuine national and regional significance.

Mohammad Abdulaziz Alomair, CEO of Elm, described the transaction in equally strategic terms: “This is an important transaction for Elm, as it enhances integration, rationalizes spending, increases profitability, and provides qualitative advantages for both parties and the market. The combined integrated entity will be better able to create advanced national smart services to serve market requirements and clients’ needs. It will also contribute to facilitating innovative operations and capabilities to develop products in the business field with cost advantages while achieving economies of scale.” His comments highlight the operational logic behind the consolidation: greater integration, efficiency, and the ability to deliver sophisticated services at scale.

The deal is expected to enhance the growth of the ICT sector, drive innovation, and localize technologies and knowledge by strengthening Elm’s ability to lead the sector at the national level. It also aims to maximize the value chain by providing a wide range of ICT products, services, and devices, creating an integrated offering that can serve government, enterprise, and consumer markets more effectively.

International and Regional Impact

How will a Saudi technology consolidation resonate in regional and global markets? The Middle East’s digital economy is expanding rapidly, with governments and businesses across the region investing heavily in cloud infrastructure, smart services, and data-driven governance. A stronger Elm, backed by the scale and strategic clarity that this acquisition provides, is well positioned to compete for opportunities within the Gulf Cooperation Council markets and beyond. International technology firms looking at the region will note that Saudi Arabia is cultivating indigenous capability rather than remaining solely a consumer of foreign platforms.

The transaction also signals to global investors that PIF’s approach to portfolio management is maturing. Rather than simply holding assets, PIF is actively reallocating them to entities where they can generate greater strategic and commercial value. This kind of portfolio optimization is characteristic of sophisticated sovereign investors, and it reinforces confidence in the Kingdom’s broader economic reform trajectory. For regional peers, the deal offers a template for how state-backed investment can be used to build competitive technology clusters that create jobs and retain talent.

Beyond the Gulf, the acquisition may be read as part of a wider trend in which countries seek digital sovereignty — the ability to control and develop critical technologies domestically. Saudi Arabia’s emphasis on localizing technology and knowledge aligns with this global pattern, while remaining open to international partnerships and investment. The result is a more resilient and self-reliant digital economy that can engage with the world from a position of strength.

Economic and Strategic Significance

What makes this transaction more than a routine merger? At its core, the deal is about building the capacity to serve a modern economy at speed and scale. By combining Elm’s established market presence with Thiqah’s specialized smart technology solutions for business services, the merged entity can rationalize spending, increase profitability, and deliver qualitative advantages to clients across sectors. Economies of scale in technology are particularly powerful: they allow for greater investment in research and development, more competitive pricing, and the ability to attract top talent.

The ICT sector is a multiplier across the Saudi economy. When digital infrastructure improves, it lifts productivity in entertainment, financial services, healthcare, transport and logistics, and utilities and renewables — all sectors identified as priorities in the Kingdom’s long-term planning. A stronger national ICT champion therefore has benefits that extend far beyond its own balance sheet. It can accelerate the digitization of government services, support the growth of small and medium enterprises, and provide the secure, reliable platforms on which new industries are built.

For PIF, the transaction represents a strategic reallocation that keeps value creation within the national ecosystem while positioning Elm to lead. For Elm, it represents a step-change in capability and market reach. For the Saudi economy, it represents another building block in the transition toward a diversified, knowledge-driven model that reduces reliance on hydrocarbons and creates opportunities for the next generation.

Vision 2030 Alignment

How does this agreement connect to the Kingdom’s long-term transformation? Saudi Vision 2030 places digital transformation at the heart of efforts to create high-skills jobs, grow the economy, and improve quality of life. The PIF-Elm agreement directly supports that aim by strengthening a national technology leader capable of localizing innovation, developing advanced smart services, and contributing to the creation of a thriving ICT ecosystem. It reflects the Vision’s emphasis on building national champions that can compete globally while serving domestic priorities.

The deal also illustrates the complementary roles of PIF and the private sector in delivering Vision 2030. PIF acts as a catalyst, investing in strategic sectors and enabling the emergence of globally competitive companies, while Elm demonstrates the operational excellence and market focus needed to translate investment into real economic value. Together, they advance the goal of a diversified economy in which technology, innovation, and human capital drive sustainable growth. As Saudi Arabia continues its journey toward 2030 and beyond, agreements such as this one show how the Kingdom is turning its ambitions into concrete, measurable progress.

20 Questions

Q1. What did PIF and Elm sign on January 22, 2025?

A1. The Public Investment Fund and Elm signed a share sale and purchase agreement for Elm to acquire Thiqah Business Services Company, a firm specializing in smart technology solutions for business services.

Q2. What is the value of the Elm-Thiqah acquisition?

A2. The deal is valued at $907 million, equivalent to SAR3.4 billion, according to the official announcement released through the Saudi Press Agency.

Q3. When is the transaction expected to be completed?

A3. Completion is expected once regulatory approvals are obtained and certain conditions are satisfied under the agreement, as stated in the official announcement.

Q4. Who announced the agreement?

A4. The agreement was announced through a PIF press release carried by the Saudi Press Agency, an official Saudi news authority, ensuring the information is verified and reliable.

Q5. What is Thiqah Business Services Company known for?

A5. Thiqah specializes in smart technology solutions for business services, providing advanced digital capabilities that complement Elm’s existing portfolio of digital solutions.

Q6. How does the deal support Saudi Arabia’s ICT sector?

A6. The transaction will further support a thriving local information and communication technologies ecosystem, enhance sector growth, drive innovation, and localize technologies and knowledge within the Kingdom.

Q7. What did Shahd Attar say about the agreement?

A7. Shahd Attar, Head of Technology and Media, MENA Investments at PIF, said PIF is committed to enabling national champions that drive economic development, and that the sale strengthens efforts to localize technology and drive innovation.

Q8. What did Elm CEO Mohammad Abdulaziz Alomair say?

A8. He said the transaction enhances integration, rationalizes spending, increases profitability, and provides qualitative advantages, enabling the combined entity to create advanced national smart services and achieve economies of scale.

Q9. Why is the ICT sector important to PIF?

A9. The ICT sector is among PIF’s strategic priority investment sectors and is a key enabler of other sectors including entertainment, financial services, healthcare, transport and logistics, and utilities and renewables.

Q10. How does the deal align with Vision 2030?

A10. It aligns with Vision 2030’s aim of using digital transformation to create high-skills jobs of the future, grow the Saudi economy, and build a diversified, knowledge-driven economic model.

Q11. What benefits will the combined entity offer?

A11. The combined integrated entity will be better able to create advanced national smart services, serve market requirements and client needs, and develop innovative products with cost advantages and economies of scale.

Q12. What does the deal mean for localizing technology?

A12. It strengthens Elm’s ability to lead the sector nationally, maximizing the value chain by providing a wide range of ICT products, services, and devices while localizing technologies and knowledge.

Q13. How does the acquisition affect competition in the Saudi market?

A13. By creating a stronger national champion, the deal enhances Elm’s capacity to serve government, enterprise, and consumer markets, supporting a more robust and competitive domestic ICT landscape.

Q14. What role does PIF play in the transaction?

A14. PIF is the seller of Thiqah and a strategic investor committed to enabling the creation of national champions that contribute to the development and growth of the Saudi economy.

Q15. Will the acquisition create new jobs?

A15. The transaction supports the Vision 2030 aim of creating high-skills jobs of the future by strengthening the ICT ecosystem and enabling the growth of advanced digital capabilities in the Kingdom.

Q16. What are the regulatory steps remaining?

A16. Completion depends on obtaining regulatory approvals and satisfying certain conditions under the agreement, after which the transaction can be finalized as announced.

Q17. How does this deal fit into PIF’s broader strategy?

A17. It reflects PIF’s strategy of investing in strategic priority sectors, optimizing its portfolio, and enabling national champions that drive innovation and economic diversification.

Q18. What impact will the deal have on Saudi Arabia’s digital economy?

A18. It will enhance the growth of the ICT sector, drive innovation, localize technology, and maximize the value chain, contributing to a more resilient and diversified digital economy.

Q19. What does the transaction signal to international investors?

A19. It signals that Saudi Arabia is building indigenous technology capability and optimizing its investment portfolio, reinforcing confidence in the Kingdom’s economic reform trajectory and long-term vision.

Q20. What is the significance of the deal for the region?

A20. The deal strengthens a Saudi technology leader capable of competing regionally, offering a model for how state-backed investment can build competitive technology clusters that create jobs and retain talent.