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Saudi Arabia’s PIF Invests in MEPCO’s Expansion Strategy

Public Investment Fund (PIF), Saudi Arabia’s sovereign wealth fund, has announced the completion of a deal to invest in Jeddah-based Middle East Paper Company (MEPCO), a leading manufacturer of paper and recycled paper-based products in the MENA region. PIF has acquired a 23.08% stake in MEPCO by way of a capital increase and subscription to new shares.

The investment is in line with the sustainability goals of the kingdom and PIF, enabling the paper company to expand its production capacity, boost operational efficiency, and support environmental sustainability through recyclable products, including paper goods.

The investment will further contribute to MEPCO’s expansion strategy, especially for packaging and specialized building materials like gypsum plasterboards – typically used in interior wall lining systems – strengthening the local supply chain for current and future projects. PIF has a diversified portfolio of investments in the construction services sector to support the sustainable growth of the Saudi economy, attract local and foreign investments, expand operational capacity, and transfer technology.

PIF’s Industrials & Mining Sector Head Muhammad AlDawood, who has been overseeing investments in the MENA region, says, “PIF’s investment in MEPCO reflects the attractive opportunities for growth in promising sectors such as recycling, retail, and building materials. This investment enables MEPCO to expand its sustainable production activities while focusing on high value-added products and growing its export activities.”

Sami Safran, Group President at MEPCO, adds, “PIF’s investment further enables the implementation of our expansion strategy and captures significant growth potential, both locally and regionally. This will help create new opportunities as MEPCO continues its journey to become a national champion in our industry. Our company strives for sustainable growth and a better future, thanks to its unique strategy which integrates paper products and waste management. MEPCO is investing in the sector through ambitious projects to support Saudi Arabia’s goals of sustainability and transition to a circular economy by recycling, reducing waste, and converting it into energy sources to meet our business needs.”

With growing demand for local products, the Saudi Arabian market provides great opportunities for investment in paper and paper products such as hygienic tissues. In this light, PIF’s investment in MEPCO supports the kingdom’s private sector by boosting local produce, increasing high-value ready-for-market exports, and getting competitive with improved product quality.

The transaction was completed after securing approvals from relevant authorities as well as MEPCO’s shareholders, who approved it at an extraordinary general meeting.

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