Saudi Arabia’s Public Investment Fund (PIF) has acquired a significant stake in the International Company For Water And Power Projects (Acwa Power), a leading developer, owner, and operator of power generation and water desalination plants.

 Following the investment, PIF will become a 15.2 per cent direct shareholder in Acwa Power and, by taking into account the 9.78 per cent ownership of its wholly-owned subsidiary Sanabil Direct Investments Company, PIF’s total shareholding directly and indirectly represents a 24.98 per cent equity interest in Acwa Power, the company said.

 The entire investment will be in the form of a capital increase and the proceeds will be used to support Acwa Power’s strategy and investment plan.

 Since its formation in 2004, Acwa Power has been a notable Saudi success story, becoming a leading private sector power and desalinated water developer and producer in the kingdom in addition to its rapid expansion into new markets. In Saudi Arabia, with 54 per cent of the Acwa Power’s gross power generation capacity and 93 per cent of its gross water desalination capacity, the company is able to provide 14 per cent and 33 per cent of the power and desalinated water consumption in the kingdom, respectively, it said.

 Now also firmly established in geographies beyond Saudi Arabia, Acwa Power has a total of 40 power and/or desalination projects in operation and under construction, and an additional seven power and/or desalination projects in advanced development. 

 The investment is in line with the Pubic Investment Fund Program, to open new sectors and industries, to support and accelerate the development of innovative Saudi businesses and achieve strong long-term returns. It also underlines the strategic support PIF has provided to Acwa Power in funding its growth and PIF’s role in opening the broader sector as a significant investor in a number of utilities businesses, Acwa Power said.