Saudi wealth fund to build $412 million stake in local tourism firm

Saudi Arabia’s sovereign wealth fund is seeking to build $412 million stake in a local travel and tourism firm as part of efforts to diversify its investments.

The Public Investment Fund signed a pact to acquire a 30 per cent stake in Almosafer Travel & Tourism Co., a unit of Riyadh-listed Seera Group Holding, according to a statement. The investment of 1.55 billion riyals ($412 million) includes a 386 million-riyal earn-out amount.

Chaired by Crown Prince Mohammed bin Salman, the $620 billion PIF is plowing deeper into public markets as it pursues the goal of increasing its assets to about $1 trillion by 2025. The wealth fund is boosting its investments in equities as Saudi Arabia’s income from oil almost doubled in the second quarter.

The fund bought a $1.5 billion stake in the investment company of billionaire Prince Alwaleed Bin Talal in May.