THE SAUDI ARABIAN PUBLIC INVESTMENT FUND ANNOUNCES 50% EQUITY STAKE IN NEW E-COMMERCE PLATFORM
14 November, 2016 - The Saudi Arabian Public Investment Fund, the Kingdom of Saudi Arabia’s sovereign wealth fund, today announced it will take a 50% equity stake in the newly launched e-commerce platform, Noon.
Noon, the region’s largest ever e-commerce company, will offer vast product selection and fast delivery options for consumers across the Middle East though its mobile app and noon.com website.
The funding forms part of the Public Investment Fund’s efforts to increase investment in non-oil sectors and build a portfolio that has greater geographical and asset class diversification, and which delivers attractive long-term financial returns for Saudi Arabia.
The Fund’s investments are focused on long-term commercial viability and its activities are closely aligned with the Kingdom’s Vision 2030 and its strategy to create a modern and diversified economy. Technology is one part of the Fund’s investment strategy, as demonstrated by the Fund’s recent investment in Uber and the signing of a Memorandum of Understanding to be one of the leading investors in a new technology-focused investment fund.
The Public Investment Fund’s investment in Noon, which also comprises active membership of the Noon board committee, is yet another example of investments made at the cutting edge of new developments, for the benefit of Saudi Arabia’s economic diversification and transformation. Noon will also bring direct jobs to Saudi Arabia as the head office will be based in Riyadh.
The Public Investment Fund believes the Noon e-commerce platform will tap into an outstanding regional market opportunity. With a growing regional population that is becoming ever more technologically adept, the e-commerce industry in the Arab world is forecast to reach $20 billion by 2020, and Noon is well positioned to be at the forefront of this growth.
The Noon leadership team possesses impressive and wide-ranging experience with a proven track record of success, and the Public Investment Fund looks forward to developing a successful e-commerce partnership.