The Strait of Hormuz has been shut for three months, putting Middle East supply chains under serious pressure. Saudi Arabia is moving fast.
Its $1 trillion sovereign wealth fund is looking at building one giant logistics company - and pitching it to the world.
The Public Investment Fund, known as PIF, controls or holds stakes in several major logistics names. There's the $8.3 billion National Shipping Company of Saudi Arabia.
Saudi Global Ports runs ports in the Eastern Province along with a dry-port network around Riyadh. Saudi Railway Co. moves freight and passengers across most of the country.
PIF is in early-stage talks about folding parts of that portfolio into a single company. No deals have closed, and the asset list isn't final.
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Talks started before the war, but they picked up speed once the Strait of Hormuz stayed closed. The waterway handles a big share of global oil and goods, so shutting it has exposed how much Middle East trade leans on one route.
Saudi Arabia's Red Sea ports suddenly look more valuable as a backup. The shift has also boosted Brent crude, which is up 74% this year as global supply tightens.
A combined logistics company would also pull in foreign money. PIF could eventually list it on a stock exchange, bringing in international investors.
This isn't just supply-chain planning. It's a head-to-head bet against the UAE.
Dubai's DP World runs ports in 83 countries with more than 119,000 workers. Abu Dhabi's AD Ports Group is so big it accounts for roughly a quarter of the emirate's non-oil economy.
PIF wants its own version of that. The fund has also been shifting its overall strategy, leaning into businesses that throw off steady returns and support the home economy after years of buying overseas trophies and funding mega-projects.
Talks are early and nothing is locked in, but the direction is clear. PIF wants its portfolio companies to stand on their own balance sheets and attract outside money - and a logistics champion fits that goal cleanly.
The next signal will be which assets get folded in first.
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