00:00Let's just talk through why the Saudi Wealth Fund is considering making this logistics national champion.
00:06What's the thinking behind it?
00:09Good morning, Jennifer.
00:10When the Saudi Wealth Fund released its long-term investment strategy last month,
00:14it outlined two main objectives.
00:16The first was creating national champions that can compete on a global scale and raise foreign capital.
00:21And the second was boosting returns.
00:23So this idea of creating a national champion for logistics serves these two objectives and fits right in.
00:29It's seen as a proven cash-generative industry that can serve strategic objectives as well.
00:35Well, and surely, Omar, there is some thinking behind what is going on geopolitically in the region
00:41and with other Gulf partners.
00:44How do these plans relate to that geopolitical backdrop?
00:50Definitely.
00:51So these plans preceded the war, but discussions were catalyzed after the closure of the Sphere of Hormuz.
00:56That resulted in a lot of the traffic that would usually go to the Gulf being diverted to Saudi Arabia,
01:01providing an opportunity for the kingdom to play a bigger role in supply chains.
01:07And there's also an element of regional competition.
01:10There's growing competition between the United Arab Emirates and Saudi Arabia.
01:13And the UAE had usually traditionally positioned itself as the gateway to the region in terms of logistics
01:20with its own national champion, DP World, and the biggest port in the region, Jabrali.
01:25So how does that inform some of the assets that might be consolidated then under this firm?
01:33So discussions at our very early stages and no final decision has been taken,
01:38but the PIF owns stakes in a lot of assets, including companies like Saudi Global Ports,
01:44which operates several ports in the kingdom, as well as Riyadh's dry port system.
01:48It also owns stakes in Bahri, the national shipping company of Saudi Arabia,
01:52as well as the Saudi Railway company that has a vast network connecting large parts of the kingdom,
01:59both in terms of freight and passengers.
02:00Thank you very much.
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