Focus 2025 is SEDCO Holding’s overarching strategy for the next seven years. It aligns SEDCO with the national agenda of Saudi Arabia’s leadership, and responds to opportunities generated by the National Transformation Program and Saudi Vision 2030.
Focus 2025 also positions SEDCO Holding for softening fundamentals in the global economy and a number of significant and positive reforms in the domestic market.
SEDCO has long prioritized direct investments in sectors beneficial to Saudi Arabia’s economic diversification. This approach is now formalized in a review of direct investment strategy. SEDCO Holding will channel direct investment into key sectors pinpointed by Saudi Vision 2030 – such as healthcare, education, hospitality, entertainment, logistics, IT, technology and food security.
These sector-specific investments will be of long tenure, with potential for growth and consolidation. The strategy calls for fewer direct investments, but of larger ticket size and in companies that have market leadership potential.
Sector-specific direct investments will be supported by a change in operating strategy. Operating companies previously had high autonomy to win market share and were supported by on-demand services from the Holding Group. Now, a refreshed model clusters our operating companies into key verticals with the aim of generating depth.
SEDCO aims to build expertise in a limited number of verticals aligned with Saudi Vision 2030, with group companies supporting each other to create integrated value chains. Focus 2025 sees SEDCO Holding become a global outperformer by establishing leadership positions in the verticals it targets. This will require departments and organizations to work cohesively, with clear delineation of responsibility.
SEDCO’s real estate portfolio will also benefit from new focus. It will prioritize local income-generating assets.
SEDCO Capital, the group’s ethical asset manager, will focus on assets where it has a leadership position. The firm will capitalize on its early mover advantage in local REIT markets and extend its Build to Suit offerings. The firm will build on its competitive public equity positioning via its Luxembourg platform.
SEDCO Holding has a strong track record of corporate governance. This will be boosted by quarterly reviews of performance for SEDCO Holding and all its operating companies. Performance will be measured against investments, dividends, valuation, financial success, operational efficiencies and KPIs.
Focus 2025 refreshes SEDCO Holding’s direction, while building on past success. It stays true to the organization’s overarching aim of maximizing net asset value through a diversified ethical investment portfolio that drives long-term returns.