Arabian Gulf

Saudi Arabia’s PIF would invest 3 trillion riyals during the next 10 years

On Sunday, Saudi Arabia’s Crown Prince Mohammed bin Salman declared the Kingdom’s strategy for its Public Investment Fund (PIF) for the next five years.

The Crown Prince evaluated that the total assets of the PIF surpass 7 trillion and 500 billion riyals in 2030, and added that the government is engaged to proving 150 billion riyals annually on Saudi Arabia’s economy from the same fund.

The PIF also indicated the following six objectives fixed to be achieved by the sovereign wealth fund by 2025: Doubling Assets under Management (AUM) to reach $1.07 trillion, creating 1.8 million jobs, both directly and indirectly, focusing on 13 strategic sectors, investing at least $40 billion annually in the local economy, contributing $320 billion to non-oil GDP, and raising the local content contribution to 60 percent in PIF and its Portfolio companies.

Moreover, Saudi Arabia’s Crown Prince, Prince Mohammed bin Salman said during a televised address on the strategy: Today, we approve the Public Investment Fund Strategy 2021-2025, which is central to achieving our country’s ambitions: economic growth, good quality of life, and inclusive, sustainable development in all traditional and modern industries.

He also said: We launched many vital sectors and investment projects in Saudi Arabia with the private sector being a strategic partner of the Public Investment Fund.

It should indicate that last December, the PIF, Saudi Arabia’s sovereign fortune fund, declared that it had made up a company to develop and expand the private security sector in the Kingdom. The National Security Services Co (SAFE) would concentrate on providing services like security consulting, security solutions, training and development, and a range of specialized services, in what the PIF reported in a statement on its website.

The PIF that was established in 1971 and its role changed significantly since the introduction of Saudi Arabia’s Vision 2030 back in April 2016. Vision 2030 envisages the fund controlling more than $2 trillion in assets, which would make it the largest SWF in the world.

Given that the plan appeals for the PIF to become a massive investment tool to help move the Kingdom away from its historic reliance on oil revenue, the fund could already diversify its investments. The PIF has invested in several big-ticket projects and institutions like the Blackstone Infrastructure Fund, Virgin Galactic, and the Softbank Vision Fund.

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