The Middle East Paper Company (MEPCO), a leading manufacturer in the Middle East and North Africa specializing in paper-based products and recycling, has entered into a strategic agreement with Saudi Arabia’s Public Investment Fund (PIF). PIF has successfully acquired a 23.08% ownership stake in MEPCO through a capital increase and new share subscriptions, marking a significant move in the paper industry.

This investment by PIF is expected to strengthen MEPCO’s production capabilities, enhance operational efficiency, and promote environmental sustainability by focusing on the production of recyclable paper goods. The move aligns with the sustainability goals of both Saudi Arabia and PIF.

Additionally, PIF’s investment supports MEPCO’s growth strategy, particularly in packaging and specialized building materials like gypsum boards, reinforcing the local supply chain for current and future developments. PIF’s diverse investments in construction services aim to contribute to the sustainable growth of Saudi Arabia’s economy, attract investments, increase operational capacities, and facilitate technology transfer.

PIF is actively contributing to the diversification of Saudi Arabia’s economy in line with Vision 2030, with a focus on 13 priority sectors, including retail, construction, and real estate.

Muhammad Aldawood, Head of Industrials and Mining Sector in MENA Investments at PIF, highlighted the fund’s role in exploring the potential of sectors like recycling, retail, and building materials. He emphasized that the investment empowers MEPCO to enhance sustainable production, focus on high-value-added products, and expand export activities.

Eng. Sami Al Safran, CEO of MEPCO, stated that the investment plays a crucial role in realizing MEPCO’s expansion strategy and tapping into significant growth opportunities locally and regionally. He emphasized MEPCO’s commitment to sustainable growth, aiming to become a national leader in the industry by integrating paper products with waste management to support Saudi Arabia’s sustainability goals and transition to a circular economy.

The Saudi market exhibits promising potential for investment in paper and related industries, such as tissues, driven by rapid growth and a push towards the localization of production. PIF’s involvement in MEPCO further strengthens the private sector in Saudi Arabia, enhances local content, increases high-value exports, and elevates quality and competitiveness.

The completion of the transaction received approval from relevant authorities and MEPCO’s shareholders, who endorsed it in an extraordinary general body meeting.