Saudi Arabia’s Kingdom Holding Company said the fair value of its stake in SpaceX has reached $6.83 billion, marking what the company described as a major milestone for its long-term investment strategy and its partnership with the Saudi Public Investment Fund (PIF), which owns a 16.87 percent stake in Kingdom Holding. The valuation reflects an increase of more than $2.3 billion from the previous carrying value of $4.47 billion, said Kingdom Holding. The announcement immediately boosted investor sentiment on the Saudi stock market, sending the company’s shares up nearly 4 percent. Kingdom Holding said it owns more than 42.4 million Class A shares in SpaceX. Based on the share price cited in the company’s disclosure, the value of that holding rose to approximately SAR 25.6 billion ($6.83 billion). Long-term investment strategy Mohammed Al-Farraj, Head of Asset Management at Arbah Capital, told Asharq Al-Awsat that Kingdom Holding’s decision to retain its investments in X and convert its shares, alongside developments related to SpaceX, demonstrates a more mature investment philosophy. The strategy reflects a focus on long-term ownership of “transformational assets” capable of generating substantial future value rather than pursuing short-term gains, he added. Such an approach, he explained, aligns closely with the objectives of Saudi Vision 2030, which seeks to strengthen the Kingdom’s presence in advanced technology sectors worldwide. Financial and economic adviser Dr. Hussein Al-Attas echoed that view, arguing that the figures disclosed by Kingdom Holding illustrate how Saudi capital has evolved from a passive source of funding into an active strategic partner in emerging industries, including space-related technologies. Al-Attas told Asharq Al-Awsat that PIF’s position as a major shareholder has given Kingdom Holding greater financial flexibility and the ability to withstand volatility in the technology sector, enabling it to pursue a more institutional and long-term investment model. Balancing growth and stability Al-Farraj noted that Kingdom Holding’s portfolio combines traditional assets, such as hotels and real estate, with high-growth technology investments. In an environment of elevated global interest rates, the steady cash flow generated by traditional assets provides an important cushion against risk, he remarked. Large-scale technology projects often require years of heavy capital spending before realizing their full economic potential, he noted. Stable, income-generating assets therefore help preserve liquidity while allowing investors to maintain exposure to higher-risk, higher-growth opportunities. Al-Attas stressed that this balanced approach mirrors the strategies employed by many leading global investment firms, reducing dependence on any single sector while preserving long-term growth potential. Gulf capital gains strategic influence Al-Farraj said Gulf sovereign wealth funds have become particularly attractive partners for major technology companies because they offer three advantages: substantial liquidity, long investment horizons, and a willingness to tolerate cyclical volatility. Beyond financing, Gulf investors provide access to rapidly expanding markets and opportunities in telecommunications, artificial intelligence, digital infrastructure, and energy, he stated. As a result, they increasingly serve as strategic partners rather than simply providers of capital. Both experts stressed that lofty valuations for companies, such as SpaceX, reflect a combination of operational achievements and strong expectations for future growth. While the potential rewards remain significant, they cautioned that such investments also carry considerable financial and execution risks if anticipated growth fails to materialize.
