Saudi Arabia’s Public Investment Fund (PIF) and I Squared Capital have signed a non-binding agreement to invest up to $2 billion in the Kingdom’s infrastructure and real estate.

The Memorandum of Understanding (MoU) was announced on Monday in Riyadh. Under the terms of the agreement, the global infrastructure investment manager will explore options to deploy capital into assets held by PIF and its various portfolio companies.

The investment will focus on two key areas that support the real estate sector. I Squared plans to target up to $1 billion for digital infrastructure developments and another $1 billion for district cooling systems. The firm also has the option to expand its funding into other related business areas in the future.

This collaboration supports PIF’s 2026-2030 strategic goals. The sovereign wealth fund aims to work alongside international investors to increase the value of its businesses and speed up project delivery by bringing in external capital.

Saad Alkroud, Head of Local Real Estate Investments at PIF, said: “PIF presents an unprecedented pipeline of real estate and infrastructure projects in the modern world, projects that continue to attract leading investors, foster sustainable value creation and generate commercially attractive returns. This MoU brings together PIF’s capabilities, scale and ecosystems, alongside I Squared’s operational expertise and proven record in the infrastructure sector.”

Sadek Wahba, Chairman and Managing Partner of I Squared Capital, said: “I Squared’s expanding partnership with PIF reflects the confidence and trust that has developed between the two institutions. With this MoU, we are evolving from partnership to action — with a shared conviction that PIF’s and Saudi Arabia’s infrastructure story is one of the most compelling in the world, and we look forward to contributing our global expertise alongside PIF in the Kingdom.”

Any final deals resulting from the MoU will require further assessments and must clear local regulatory approvals.