Saudi Arabia’s Public Investment Fund (PIF) and ACWA Power have signed a landmark memorandum of understanding (MoU) to develop advanced power and water infrastructure for PIF’s extensive real estate portfolio across the Kingdom. The strategic partnership, announced at the ninth Future Investment Initiative (FII9) in Riyadh, marks a significant step forward in developing sustainable utility infrastructure for Saudi Arabia’s ambitious development projects.
Strategic Partnership Framework
The non-binding MoU establishes a framework for collaboration between PIF, the Kingdom’s sovereign wealth fund, and ACWA Power, a global leader in power generation and water desalination. The agreement was signed by Sahem Nasser, Head of Investment Strategy Department in Local Real Estate Investments Division at PIF, and Khaled Almedbel, Head of KSA Business Development at ACWA Power, in the presence of senior leadership from both organizations.
Infrastructure Development Focus
Under the terms of the agreement, both entities will explore opportunities to develop resilient utilities and sustainable infrastructure projects that will serve PIF’s growing real estate portfolio. The collaboration aims to ensure the delivery of critical energy and water services to PIF-owned local real estate projects, with a strong emphasis on maximizing local content and private sector participation in Saudi infrastructure development.
The partnership represents a significant advancement in PIF’s infrastructure strategy initiative, which seeks to forge strong relationships with both local and international private sector developers and investors across the infrastructure asset class. This approach aligns with the fund’s commitment to advancing clean and renewable energy solutions while ensuring sustainable water infrastructure development.
Economic Impact and Innovation
The collaboration between PIF and ACWA Power is expected to generate substantial economic benefits for Saudi Arabia. By focusing on locally produced content and encouraging private-sector investment, the partnership will contribute to the Kingdom’s economic diversification efforts while creating new opportunities for domestic businesses and workforce development.
The initiative will support PIF’s broader mandate of driving economic impact while securing sustainable returns, further strengthening its role in supporting Saudi Arabia’s economic transformation and diversification agenda. This strategic partnership demonstrates the fund’s commitment to developing world-class infrastructure that meets international standards while promoting sustainable development practices.
Vision 2030 Alignment
This collaborative effort strongly aligns with Saudi Vision 2030’s objectives for sustainable development and economic diversification. As PIF continues to lead the development of transformative giga-projects and landmark real estate initiatives across Saudi Arabia, this partnership with ACWA Power will play a crucial role in ensuring these projects are supported by state-of-the-art, sustainable utility infrastructure. The initiative represents another significant step forward in the Kingdom’s journey toward becoming a global leader in sustainable urban development and infrastructure innovation.