Fri Sep 20 08:55:08 UTC 2024: ## Saudi Arabia’s Sovereign Wealth Fund Invests Hundreds of Millions in Shipping Expansion
**DHAHRAN, Saudi Arabia** – Folk Maritime, a Saudi cargo shipper owned by the kingdom’s sovereign wealth fund, the Public Investment Fund (PIF), is set to invest hundreds of millions of dollars to expand its fleet. The company plans to buy or charter between 15 and 18 container ships over the next three to five years, significantly increasing its current fleet of just three vessels.
Folk Maritime’s expansion is part of Saudi Arabia’s broader economic diversification strategy, aimed at reducing dependence on oil revenues and fostering growth in sectors such as manufacturing, technology, and tourism. The expansion of transportation infrastructure, including shipping, is crucial to supporting this transformation by connecting consumers, businesses, and travelers within the kingdom and beyond.
The company will focus on expanding its operations in the Red Sea, connecting countries in the region, including India, the Gulf, and East Africa. Folk Maritime will introduce three new routes next year, adding to its existing two routes in the northern Red Sea.
While the exact cost of the expansion is not publicly disclosed, each container ship can cost tens of millions of dollars, with the price influenced by market factors like freight costs.
Folk Maritime’s expansion underlines Saudi Arabia’s commitment to developing a robust and modern shipping sector, facilitating economic growth and creating new employment opportunities within the kingdom.
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