Riyadh - Sharikat Mubasher: Manara Minerals, a joint venture between the Saudi Arabian Mining Company (Ma’aden) and the Public Investment Fund (PIF), shifted its strategy away from global mergers and acquisitions (M&A), aligning with the Kingdom’s focus on investments to boost its local economy.

The Saudi company now plans to pursue joint ventures or partnerships with trading firms and make debt investments, people familiar with the matter told Bloomberg.

The company could still look at some equity investments going forward, but that will no longer be its primary focus as it attempts to be more capital efficient. This shift underscores Saudi Arabia’s push for greater discipline in capital allocation and a sharper focus on investments that help boost its local economy.

Manara Minerals is now in advanced discussions with global commodity houses as it pushes into trading. In January, it had discussions to partner with traders, including Glencore Plc and Trafigura Group.

As part of its shift toward capital efficiency, the company would focus on loans to miners in return for offtake rights, allowing it to benefit once production begins.