Saudi Arabia invests $3.5bn in Uber

Added 2nd June 2016

The Saudi Arabian Public Investment Fund (PIF), the kingdom’s long-term sovereign investment arm has invested $3.5bn (£2.4bn, €3.1bn) in the US-based online taxi service Uber, the Saudi press agency announced.

Saudi Arabia invests $3.5bn in Uber

The investment is one of PIF’s single largest international transactions to date and the first since Saudi Arabia announced a new economic plan to reduce it dependency on oil revenues, known as Vision 2030.

After its investment, the PIF will own around 5% of Uber, and its managing director, Yasir Al Rumayyan, will join Uber’s board.

Uber currently serves nine countries and 15 cities across the Middle East and North Africa. In Saudi Arabia, Uber serves Riyadh, Jeddah, Mecca, Medina and the Eastern Province. The company said that it has over 395,000 active riders in the Middle East, up fivefold from a year ago, and 19,000 drivers.

Uber’s service is said to have proved particularly popular among women in Saudi Arabia as they are not allowed to drive because of fatwas, or religious edicts, although there is no formal law prohibiting women from driving in the region.

“Our experience in Saudi Arabia is a great example of how Uber can benefit riders, drivers and cities. We appreciate the vote of confidence in our business and look forward to partnering with the Kingdom to support their economic and social reforms,” said Travis Kalanick, chief executive and the co-founder of Uber.

 

Visitor's Comments Add your comment

Add Your Comment

We won't publish your address

About Author

Richard Hubbard

Group Editor

Richard Hubbard is the group editor at Last Word. He is responsible for the editorial content of International Adviser, Portfolio Adviser, Expert Investor and Fund Selector Asia. Richard previously worked for Thomson Reuters and has covered the financial services industry and investment themes from its offices in London, Singapore, Hong Kong and New York. Richard started his career at the Australian Financial Review in Sydney.

Features

 Mike Webb on reviving Rathbones’ unit trust business post-Brexit

Mike Webb on reviving Rathbones’ unit trust business...

Mike Webb talks about his mission to revitalise Rathbones’ unit trust business and the impact of the UK’s decision to leave the European Union

Analysis

Profiles

Directories

Ashburton International
Ashburton International

Ashburton Investments is a new generation investment...

Tweets

Events

IA International Portfolio Bond Forum 2017
IA International Retirement Planning Forum Dubai 2017
IA International Retirement Planning Forum Dubai 2017

Thursday 15 March,
Shangri-La Hotel, Dubai

Sponsored Content

Investment Strategy

OTHER STORIES FROM LAST WORD...