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Public Investment Fund's Alat and TK Elevator Establish $167 Million Joint Venture
New collaboration aims to develop elevator and escalator manufacturing in Saudi Arabia, aligning with Vision 2030 goals.
Riyadh, Saudi Arabia - A joint venture valued at €160 million ($167 million) has been established between the Public Investment Fund's Alat and TK Elevator, aimed at advancing mobility development within the Kingdom.
This partnership is said to introduce various products, comprehensive solutions, and a manufacturing presence in Saudi Arabia, bolstered by the establishment of a local development center.
Notably, this initiative marks the first production operation for elevators and escalators by a global company within the Kingdom.
The collaboration fits within the broader strategy of the Public Investment Fund (PIF) to diversify the Saudi economy and foster growth in key sectors, demonstrating a commitment to the objectives outlined in Vision 2030, which emphasizes sustainable urban development and economic diversification.
Market analysis anticipates that Saudi Arabia's elevator and escalator sector could reach a value of $1.84 billion by the year 2030, indicating substantial growth potential.
According to Amit Midha, CEO of Alat, the partnership with TK Elevator is pivotal in establishing a sustainable technology manufacturing hub in Saudi Arabia, focused on advancing industrial and electronic sectors.
Under the terms of the joint venture, Alat will acquire a 15 percent stake in TK Elevator, subsequently becoming a direct shareholder and an integral member of the ongoing investment consortium.
This arrangement is anticipated to enhance Alat's operational framework and boost its value creation prospects.
Uday Yadav, CEO of TK Elevator, stated that the partnership signifies an important milestone in the company's transformation and underscores its commitment to contributing to the Kingdom’s vision for future developments.
He noted that this collaboration would not only support the advancement of the Kingdom's infrastructure but also positions TK Elevator strategically within the industry's growth cycle.
Yadav expressed optimism regarding Alat's role as a long-term investor, anticipating collaborative benefits for both parties.
The joint venture is expected to finalize by the end of the third quarter of 2025, pending customary statutory and regulatory approvals.
This new entity is also characterized by TK Elevator's dedication to enhancing urban mobility through innovative solutions and services.
It aims to leverage the burgeoning installation market in the Kingdom, one of the fastest-growing and most innovative globally, while also serving as a sales and service hub through the Middle East and North Africa network to stimulate regional business growth.
This partnership is said to introduce various products, comprehensive solutions, and a manufacturing presence in Saudi Arabia, bolstered by the establishment of a local development center.
Notably, this initiative marks the first production operation for elevators and escalators by a global company within the Kingdom.
The collaboration fits within the broader strategy of the Public Investment Fund (PIF) to diversify the Saudi economy and foster growth in key sectors, demonstrating a commitment to the objectives outlined in Vision 2030, which emphasizes sustainable urban development and economic diversification.
Market analysis anticipates that Saudi Arabia's elevator and escalator sector could reach a value of $1.84 billion by the year 2030, indicating substantial growth potential.
According to Amit Midha, CEO of Alat, the partnership with TK Elevator is pivotal in establishing a sustainable technology manufacturing hub in Saudi Arabia, focused on advancing industrial and electronic sectors.
Under the terms of the joint venture, Alat will acquire a 15 percent stake in TK Elevator, subsequently becoming a direct shareholder and an integral member of the ongoing investment consortium.
This arrangement is anticipated to enhance Alat's operational framework and boost its value creation prospects.
Uday Yadav, CEO of TK Elevator, stated that the partnership signifies an important milestone in the company's transformation and underscores its commitment to contributing to the Kingdom’s vision for future developments.
He noted that this collaboration would not only support the advancement of the Kingdom's infrastructure but also positions TK Elevator strategically within the industry's growth cycle.
Yadav expressed optimism regarding Alat's role as a long-term investor, anticipating collaborative benefits for both parties.
The joint venture is expected to finalize by the end of the third quarter of 2025, pending customary statutory and regulatory approvals.
This new entity is also characterized by TK Elevator's dedication to enhancing urban mobility through innovative solutions and services.
It aims to leverage the burgeoning installation market in the Kingdom, one of the fastest-growing and most innovative globally, while also serving as a sales and service hub through the Middle East and North Africa network to stimulate regional business growth.
