Saudi PIF to invest $1 bln in Virgin space ventures

Saudi Arabia’s Public Investment Fund (PIF) has signed a non-binding memorandum of understanding (MoU) to invest approximately $1 billion into Virgin Galactic, The Spaceship Company and Virgin Orbit, it said in a statement on Thursday.

The deal, signed during the Future Investment Initiative (FII) conference in Riyadh this week, includes an option for $480 million of future additional investment in space services, PIF said.

“The future of Saudi Arabia is one of innovation, as showcased at this week’s Future Investment Initiative,” said Saudi Arabia’s Crown Prince Mohammad bin Salman.

“It’s through partnerships with organizations like Virgin Group that we will make active contributions to those sectors and technologies that are driving progress on a global scale,” he added.

Subject to regulatory approval, the planned investment will result in PIF acquiring a “significant stake” in Virgin Galactic, The Spaceship Company and Virgin Orbit, alongside Virgin Group and Abu Dhabi’s Aabar Investments.

This will support the companies’ human spaceflight plans as well as Virgin Orbit’s manufacturing and operational capabilities.

The deal will also aid the development of low-cost small satellite launch systems and commercial supersonic point-to-point travel capabilities.

In addition, the MoU includes the possibility to develop a space-centric entertainment industry in Saudi Arabia, PIF said.

The Saudi fund will cooperate with the Virgin companies to execute “a mutually agreed roadmap for the KSA’s space industry consistent with applicable laws, including US export controls,” the statement added.

“We are now just months away from Virgin Galactic going into space with people on board and Virgin Orbit going into orbit and placing satellites around the Earth,” said Richard Branson, founder of the Virgin Group.

“This investment will enable us to develop the next generation of satellite launches and accelerate our program for point to point supersonic space travel,” he added.