The kingdom’s first investment in the satellite and space business was made on Monday by the Public Investment Fund (PIF) of Saudi Arabia, which established the Neo Space Group to concentrate on the emerging industry.
The PIF, one of the biggest sovereign wealth funds in the world, has already made significant investments in the gaming industry, sports, and so-called Saudi giga-projects, such as Neom, a $500 billion futuristic megacity being built in the desert.
According to a statement from the sovereign wealth fund, the Neo Space Group, or NSG, is the “PIF’s first investment focused on the space industry”.
The organization strives to develop and enhance commercial space operations in Saudi Arabia, delivering innovative satellite and space solutions locally and globally , according to the PIF.
In an additional attempt to increase economic diversification, it would “invest in localization, technology, start-ups, and knowledge in the space and satellite sector in Saudi Arabia.”
The de facto ruler, Crown Prince Mohammed bin Salman, has made efforts to diversify and open up Saudi Arabia’s economy, which is heavily dependent on oil.
Prominent football players, a recently established national airline, and even a specialty store offering gelato made from camel milk—the PIF has invested billions of dollars in purchases meant to promote diversity.
The fund has also made well-known investments in overseas companies, such as holdings in Activision Blizzard, Uber, and electric vehicle manufacturer Lucid.
However, the majority of its portfolio is made up of domestic investments.
Omar Al-Madhi, co-head of PIF’s MENA Direct Investments, stated, “The launch of NSG marks an important milestone in the growth of the growing satellite and space sector in Saudi Arabia.”
