RIYADH:
On Monday, Saudi Arabia’s Public Investment Fund (PIF) announced the launch of the Neo Space Group (NSG), marking its first foray into the satellite and space industry.
As one of the largest sovereign wealth funds globally, the PIF has already made significant investments in sports, gaming, and ambitious projects like Neom, a $500-billion futuristic megacity under construction in the desert.
The Neo Space Group, the PIF’s initial investment in the space sector, aims to develop and enhance commercial space operations within Saudi Arabia, providing innovative satellite and space solutions locally and globally, according to a statement from the sovereign wealth fund.
The group will also focus on investing in localization, technology, start-ups, and knowledge within the space and satellite sector, aligning with Saudi Arabia’s ongoing efforts to diversify its oil-dependent economy.
Under the leadership of Crown Prince Mohammed bin Salman, Saudi Arabia has been actively working to diversify its economy. The PIF has invested billions in various acquisitions to support this diversification, ranging from world-class footballers to a new national airline and even a specialty shop offering camel milk gelato.
Additionally, the PIF has made high-profile investments in international companies, including stakes in Uber, electric car manufacturer Lucid, and video game company Activision Blizzard. However, the majority of its portfolio consists of domestic investments.
Omar Al-Madhi, PIF’s co-head of MENA Direct Investments, stated, “The establishment of NSG marks an important milestone in the development of the growing satellite and space sector in Saudi Arabia.”
Last year, Saudi Arabia sent its first two astronauts into space, including Rayyanah Barnawi, the kingdom’s first female astronaut.