PIF signs 4 MoUs with Saudi entities to boost private sector participation

Logo of Public Investment Fund

The Public Investment Fund (PIF) announced today, March 14, the signing of four memorandums of understanding (MoUs) with local entities on the sidelines of the inaugural PIF Private Sector Forum in Riyadh.

The agreements aim to enhance joint cooperation through a range of initiatives aimed to support Saudi Arabia’s private sector across a number of strategic sectors.

The first MoU was signed with the Local Content and Government Procurement Authority, to develop local content in the national economy, by joining hands in local content development programs and strategies for the fund and its companies. In addition, the MoU will develop and launch opportunities for local content in the various target sectors for PIF and its portfolio companies.

The second MoU was signed with the Building Technology Stimulus Initiative under the Ministry of Municipal and Rural Affairs and Housing, and aims to explore opportunities to develop the modern construction methods and relevant technologies to serve the direction of the housing and construction sectors in Saudi Arabia, and grow the local content in the construction sector.

The third MoU was signed with the Saudi Contractors Authority to cooperate on several initiatives to support the development of the local contracting sector to strengthen the Kingdom’s position as a leader in the construction and building services sector to support the ambitions of PIF Real Estate projects, according to the statement.

The fourth agreement with the Federation of Saudi Chambers aims to enhance the cooperation between the private sector and PIF's projects and investments, which will increase local content by encouraging the private sector to take part in PIF's current and future investments and projects.

The signing of the agreement comes as part of the Federation's role as an umbrella for the business sector and the chambers of commerce in Saudi Arabia.

Through the signing of the four MoUs, PIF aims to enable the growth of the local private sector by creating more opportunities to be involved, enhancing its knowledge and capacity for innovation, and encouraging the localization of supply chains in strategic sectors.

These objectives align with PIF’s efforts to support and enable the private sector to achieve the target of increasing its contribution to GDP to at least 65% by 2030, as outlined in Saudi Vision 2030, PIF said.