Saudi Arabia’s Public Investment Fund (PIF) has announced the sale of Thiqah, a business services firm, to Elm for $907 million (SAR3.4 billion). The deal, which was reported by Gulf Business, aligns with PIF’s strategy to support the country’s economic diversification goals under Vision 2030 by strengthening key sectors like information and communications technology (ICT).

The acquisition is set to be finalized once all regulatory approvals and other conditions are met. Elm, which already counts PIF as a major shareholder with a 67 per cent stake, stated in a filing that it will fund the purchase using cash from its own resources and facilities.

PIF highlighted that this move will enhance Saudi Arabia’s ICT sector by fostering innovation, creating high-skilled jobs, and driving economic growth. Elm, meanwhile, expects the acquisition to bolster its strategic growth plans, improve its digital services offerings, and expand its market reach.

Thiqah, currently fully owned by PIF, plays a significant role in the fund’s broader efforts to localize technology and promote innovation within the kingdom. Shahd Attar, head of Technology and Media at PIF’s MENA Investments division, said the sale underscores the critical role of the ICT sector in advancing technological localization and innovation.

PIF, which manages close to $1 trillion in assets, serves as the backbone of Saudi Arabia’s efforts to diversify its economy away from oil dependency. Under Vision 2030, the sovereign fund has launched 95 new companies and created over 644,000 jobs since 2017.

Elm’s stock, which has surged over 800 per cent since its 2022 IPO, is expected to benefit further from this acquisition as the company positions itself as a key player in Saudi Arabia’s growing digital services market.