Saudi Arabia’s Public Investment Fund (PIF) is considering merging its transportation and supply chain assets to create a logistics giant capable of attracting foreign investment and better serving the Kingdom’s trade hubs, according to Bloomberg.

The fund has held preliminary talks to consolidate parts of its extensive portfolio, which includes port, rail, and shipping assets, into a single entity.

The expanded entity could eventually become a platform for multi-billion-dollar investments in the logistics sector.

The fund may later seek to bring in international investors to the new company, including through a potential initial public offering (IPO).

Discussions gained momentum with the Hormuz crisis

. According to Bloomberg, the fund's discussions began before the outbreak of the Iran-Iraq War, but gained further traction with the continuation of the conflict and the closure of the Strait of Hormuz.

The disruptions around the vital waterway over the past three months have reinforced the need for alternative trade routes, including Saudi ports on the Red Sea.

Discussions are still in their early stages, and no final decisions have been made regarding the creation of the new entity or the assets to be included.