Our Investment Strategy

SISCO HOLDING

Through expansion, mergers & acquisitions, concession development, and the funding of brownfield projects, we aim to create a port-to-door logistics platform—maximizing synergies along the entire supply chain. We will use our expertise in greenfield investments to build strategic partnerships and capitalize on the potential. We will focus on both the organic and inorganic growth of our assets within the logistics and infrastructure sectors, regionally and internationally. Our strategy is designed to reach the target of SAR 6 bn AUMs by 2026, which we call the 6x26 strategy.

Investment Criteria

Investment Criteria

Key criteria for investments at SISCO holding level or through our investment vehicles is as follows

Profitable businesses with strong gross and net income margins

Project IRR in excess of 12%

Preference for majority stake and consolidation

Growth Enablers

Growth enablers

SISCO holding will achieve growth through two avenues: organic and inorganic growth through our portfolio companies or our investment vehicles and inorganic investment at the holding level.

Acquisitions at Holding Level

SISCO holding will drive growth at the holding level through inorganic investments in logistics, primarily focusing on 3PL cold chain and adjacencies in the logistics value chain. SISCO holding has built strong investment capabilities at the corporate level to implement its strategy. A healthy pipeline of deals has been developed within the 3PL cold chain and e-commerce segment. SISCO holding's acquisition strategy will be primarily KSA focused although opportunities across the GCC will be considered if they fit our overall investment criteria.

SISCO holding Investment Vehicles

We are currently focusing on establishing investment structures that will support entering into strategic partnerships, and our global expansion strategy. This approach has proven to be successful in the past, as evidenced by the evolution of our initial investment structure, RSPD, into RSGT.

Our current vehicles include:

Red Sea Port Development (RSPD)

RSPD was established in 2009 as the original investment vehicle which spawned our greenfield asset RSGT, one of the world's busiest port operations and the largest asset in our portfolio, and our crown jewel.

We continue to seek opportunities to expand within the Kingdom through new concessions or acquisitions.

RSPD International (RSPDI)

In order to extend the range and presence of RSGT beyond the Kingdom, we established RSPDI as our latest investment vehicle in 2022. This move marks SISCO holding's inaugural foray into international investment. Our early endeavors through RSPDI have already yielded fruitful outcomes, as we were selected as the preferred operator for a port terminal in Bangladesh.

Green Dome Investment (GDI)

GDI was established in 2020 in partnership with two notable Emirati families to serve as our logistics investment vehicle, expanding our reach beyond the Kingdom and throughout the GCC. Its initial acquisition was Elite Logistics in 2021, granting SISCO holding a foothold in the United Arab Emirates, Qatar, Bahrain, and Oman. Elite Logistics extended its operations to Kuwait in 2022, enabling our presence in all five Gulf nations. These moves underscore our proactive approach to expanding our investment opportunities. The company has an independent investment committee with 7 members chaired by a SISCO holding representative.

Growth Levers

We focus on organic and non-organic growth of our assets in the ports, logistics and water sectors both regionally and internationally.