In a decisive move to bolster its presence in the paper production sector, Saudi Arabia’s Public Investment Fund (PIF) has taken a significant shareholding position in the Middle East Paper Company (MEPCO), a regional leader in paper manufacturing and recycling. The PIF has secured a 23.08% ownership in MEPCO following a capital injection and the issuance of new shares.
The strategic investment aims to advance MEPCO’s production capabilities, enhance operational efficiencies, and promote sustainable practices by focusing on recyclable paper products. This initiative is in harmony with Saudi Arabia’s sustainability goals as well as those of the PIF.
With this infusion of capital, MEPCO is poised to augment its growth strategy, particularly in the packaging sector and specialized construction materials, such as gypsum boards, also known as drywall. The move is expected to solidify the domestic supply chain to support current and upcoming projects within the region.
A statement from PIF indicated that the fund maintains a diverse investment portfolio in the construction services sector. The objective is to underpin the continuous sustainable development of Saudi Arabia’s economy, attract additional investments, both domestic and international, increase operational capacities, and facilitate technological advancements.
Furthermore, the PIF is actively engaging with the private sector to stimulate growth across 13 key industries, including retail, construction, and real estate. These efforts are part of PIF’s broader investment strategy and are instrumental in realizing the objectives outlined in Saudi Vision 2030, which aims at economic diversification.