Saudi PIF eyes minority stakes in German firms

Saudi Arabia's Public Investment Fund (PIF) is considering buying up to 10 percent stakes in about half a dozen German technology and financial firms, Reuters reported on Wednesday, citing the kingdom's ambassador to Germany, Awwad Al-Awwad.

No further details were disclosed about the target firms.

Al-Awwad added that while no official agreement has been yet signed, he expected the deals to materialize by 2018.

"Germany is an economic powerhouse with (around) 300 hidden champions here that would need more capital to take them to another stage of development," Al-Awwad told Reuters.

PIF officials could not immediately be reached for comment when contacted by Argaam.

Saudi Arabia is looking to boost its wealth fund’s total holdings so as to diversify away from oil as the main source of revenue.

The PIF has been looking to diversify its investments locally and overseas across a range of sectors. The fund is said to be working on buying a stake in Riyadh-based ACWA Power, and UAE-based Alabbar’s Adeptio.