The Public Investment Fund (PIF) of Saudi Arabia is taking a big step forward by purchasing a 10% share in London Heathrow Airport.
With Spain’s Ferrovial reducing its previous 25% ownership, this acquisition is part of a significant ownership change. In addition, Paris-based private equity company Ardian plans to buy the remaining 15%.
Alongside the Qatar Investment Authority as a significant investor, PIF, led by Saudi Crown Prince Mohammed bin Salman, now owns a portion of one of the busiest airports in Europe.
Ferrovial stands to gain a substantial sum of money from the deal, amounting to £2.37 billion ($3 billion). This is noteworthy because Ferrovial’s stake in the airport was previously valued at zero.
Under the direction of Crown Prince Mohammed bin Salman, the Public Investment Fund has been aggressively expanding its portfolio of international investments.
As a major player in international investments, PIF aims to accumulate $2 trillion in assets by 2030. Notably, in 2022 the fund participated in the purchase of Vodafone Group Plc’s tower division.
This calculated action advances the ongoing change in Saudi Arabia’s economic environment and is consistent with Prince Mohammed bin Salman’s conception of state capitalism. Through its participation in Heathrow alongside other investors such as Qatar, PIF is broadening its portfolio and augmenting its influence in the international economic sphere.