The sovereign wealth fund of Saudi Arabia, known as the Public Investment Fund (PIF), has established a new enterprise aimed at propelling the growth of the nation’s satellite and space industry through the development of local expertise.
Named Neo Space Group (NSG), this new venture will channel investments into domestic and international assets and capabilities, as well as venture capital endeavors, to foster the progression and domestication of industry-specific knowledge.
The formation of NSG signifies a pivotal moment in the evolution of Saudi Arabia’s burgeoning satellite and space sector, as well as its aspiration to become a prominent commercial entity in the global satellite arena,
remarked Omar Al-Madhi, who co-leads MENA Direct Investments at PIF.
PIF envisages that NSG will stimulate the kingdom’s economic growth across numerous strategic sectors while promoting the internalization of essential industries.
With its sights set on cultivating and enhancing commercial space operations within Saudi Arabia, NSG also intends to deliver innovative satellite and space solutions on an international scale.
The corporation is structured around four main business divisions: satellite communications, earth observation and remote sensing, satellite navigation coupled with the Internet of Things, and a space-centric venture capital fund.
NSG is poised to play a crucial role in implementing the latest state-of-the-art technologies within the space industry.
The aerospace sector’s development aligns with the kingdom’s overarching strategy to tap into the potential of promising sectors and support the shift towards a diversified economy, as outlined in Vision 2030.
Earlier in the year, PIF launched Alat with the strategic intent to ink agreements with global entities and channel investments into significant industrial firms that are anticipated to establish a local presence in Saudi Arabia. By 2030, the investment firm is set to deploy $100 billion in investments.
In May, Alat introduced two innovative business units focusing on electrification and artificial intelligence infrastructure to fortify global electricity grid technology and meet the surging demand for sophisticated AI infrastructure.
PIF remains a linchpin in the economic diversification plans championed by Crown Prince and Prime Minister Mohammad bin Salman, looking to reduce the nation’s dependence on oil revenues by nurturing new industries and investing in infrastructural development projects.
Since 2017, the $925 billion sovereign fund has been instrumental in launching 94 companies and generating over 644,000 direct and indirect job opportunities. In a recent move, PIF unveiled its Managers’ Gate platform and the Portfolio Management Development Program—a digital platform fostering collaboration between the fund and external fund managers.
According to a report by Global SWF in January, PIF accounted for approximately one-quarter of the nearly $124 billion invested by sovereign wealth funds globally in the last year.
The fund’s investment portfolio is diverse, encompassing stakes in tech companies like Uber Technologies, sports entities such as Newcastle United of the English Premier League, electric vehicle manufacturers Lucid and Ceer, and funding ambitious projects like the $500 billion futuristic NEOM City and the Red Sea Development Company’s expansive tourism initiative.