Saudi Arabia emerges as the next hub of an integrated aluminium complex, PIF partners with Red Sea Aluminium Holdings

Saudi Arabia is set to expand its downstream aluminium manufacturing footprint after PIF and Red Sea Aluminium Holdings (RSAH) agreed initial terms to jointly develop an advanced, single integrated aluminium complex in Yanbu, located on the Kingdom’s western coast.

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The proposed development brings together the Public Investment Fund (PIF) and RSAH , a joint venture between Innovation Global Industries, Innovation New Materials and Shandong Innovation Group, to establish one of the Middle East’s largest continuous casting facilities. The joint venture will focus on producing a multi-segment product range of high-value aluminium, supporting demands in domestic as well as international markets. 

According to the agreement, Red Sea Aluminium Industrial (RSAI), a complex owned by RSAH, will bring advanced smelting technologies to Saudi Arabia. The project is so positioned that it will play as a key driver in strengthening the Kingdom’s industrial capabilities while embedding cutting-edge production processes within its manufacturing ecosystem.

The partnership was announced on the sidelines of the Future Minerals Forum in Riyadh and aligns with PIF’s broader strategy to build regional and global partnerships. The approach is designed to attract investment, diversify the Saudi economy, localise technical expertise and unlock growth across strategic sectors.

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Dr Muhammad AlDawood, Head of the Industrials and Mining Sector at PIF, said the fund continues to deliver on its mandate by developing globally competitive industrial ecosystems that support economic transformation and diversification. He added that the RSAI project would help secure the supply of downstream aluminium products to meet rising local and global demand.

Tom Northover, Executive Board Director at RSAH, stated that the company aims to establish itself as a global leader in downstream aluminium, integrated within Saudi Arabia’s industrial and energy landscape. He noted that the Yanbu investment reflects the Kingdom’s growing role as an international hub for advanced industry, adding that the partnership with PIF brings extensive investment expertise and scale from the outset.

PIF, one of the world’s most influential investors, said Red Sea Aluminium Industrial will complement its existing investments across strategic sectors, including automotive, power and utilities, electronics and construction.

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RSAH’s shareholders rank among the world’s largest producers of downstream aluminium products. By leveraging its own technology platforms and a proven mega-cluster model, the Yanbu Complex will successfully position itself to capitalise on growing demand for aluminium globally.

Beyond its production ambitions, the partnership is expected to place equal weight on workforce development, setting out measures such as technical training, structured skills programmes and access to international operating practices aimed at strengthening local industrial capabilities. The agreement will proceed only after the relevant transaction documents are completed, standard conditions are met, and all required regulatory approvals and authorisations are obtained.