RIYADH — The Public Investment Fund (PIF), Saudi Arabia's sovereign wealth fund, has bought a 2.04 percent stake in Reliance Retail Ventures Limited (RRVL) for about $1.3 billion (SR4.8 billion approximately), the PIF said in a statement on Thursday carried by Saudi Press Agency. "This investment will further strengthen PIF's presence in India's dynamic economy and promising retail market segment. The investment in RRVL follows an earlier acquisition of a 2.32 percent stake in Jio Platforms, the digital services subsidiary of Reliance Industries," according to the statement. The move is in line with PIF's strategy as a leading global investor, with a proven track record of investing in innovative and transformative companies globally, to develop strong partnerships with leading groups in their respective markets. India's retail sector is one of the largest in the world and accounts for over 10 percent of its gross domestic product (GDP), which presents meaningful growth potential. Commenting on the development, Yasir Al-Rumayyan, Governor of PIF, said: "We are pleased to be furthering our trusted partnership with Reliance Industries, the leading player in some of India's most exciting sectors. This transaction demonstrates PIF's commitment to investing and partnering for the long-term with innovative businesses around the world that lead and transform their sectors. "This investment further demonstrates PIF's commitment to generating returns for the Saudi people and driving the economic diversification of Saudi Arabia." Reliance Retail Limited, a subsidiary of (RRVL), operates India's largest, fast-growing retail business serving close to 640 million footfalls across its 12,000 stores across the country. Reliance Retail's vision is to galvanize the Indian retail sector through its new commerce strategy, serving millions of customers by empowering millions of micro, small and medium enterprises (MSMEs). Mukesh Ambani, Chairman and Managing Director of Reliance Industries, said: "We at Reliance have a long-standing relationship with Saudi Arabia. PIF is at the forefront of the economic transformation of the Kingdom." "I welcome PIF as a valued partner in Reliance Retail and look forward to their sustained support and guidance as we continue our ambitious journey to transform India's retail sector for enriching the lives of 1.3 billion Indians and millions of small merchants."
