Saudi Aramco seeks investors to set up construction firm: report

State-owned Saudi Aramco plans to set up a construction company in partnership with local and international investors to build non-oil infrastructure in Saudi Arabia, Reuters reported citing sources familiar with the matter.

Local companies Nesma & Partners, Al Rashid Trading & Contracting Co, Azmeel Contracting, El Seif Engineering, in addition to international groups including Turkey’s Tekfen and South Korea’s Posco, Daewoo and Samsung C&T have all expressed interest in the new construction venture.

The Public Investment Fund (PIF) is expected to be part of the newly created company, which will eventually have thousands of employees, sources said.

Aramco aims to enter sectors beyond oil as it plays a key role in the government plan to diversify the economy, as it is also creating a multi-billion dollar shipbuilding complex and plans an industrial city for energy-related businesses.

In May, Aramco signed with U.S. Jacobs Engineering to form a management company for strategic construction projects in the kingdom; the PIF is also part of that deal.

The oil giant plans to list about 5 percent of its shares in local and international stock markets next year, and establishing an independent company to handle construction could make that process easier by spinning off a business unrelated to the parent’s core oil business.