PIF to finance fresh local investments from 4 sources: Al-Rumayyan

Yasir Al-Rumayyan, Governor of PIF

Yasir Al-Rumayyan, Governor of Public Investment Fund (PIF), praised the fund’s five-year strategy, adopted by Mohammed bin Salman, Saudi Crown Prince and Board Chairman of PIF.

The PIF will invest SAR 150 billion in the Saudi economy on an annual basis, backed by its four sources of funding that include asset transfers from the government, retained investment returns and loans.

The PIF reached economic milestones, making significant investments locally and overseas. The fund has also become an engine for the Kingdom’s economy, Al-Rumayyan said in a government briefing held today, Jan. 26.

The Kingdom’s sovereign wealth fund also achieved a significant increase in total shareholder returns doubling them from about 3% from 2014-2016 to about 8% from 2018-2020.  

According to Al-Rumayyan, the fund targeted 331,700 direct and indirect jobs through investment in ten sectors, including real estate development, infrastructure, tourism, entertainment, clean energy and others.

The fund’s efforts are not confined to investment in the Kingdom’s resources, but rather aim to boost growth in promising sectors and achieve sustainable economic growth, the PIF Governor affirmed.

Moreover, the PIF is one of the world’s largest and fast-growing sovereign wealth funds. It also plays a pivotal role in delivering the Vision 2030 objectives.

Al-Rumayyan underlined the fund’s direct strategic objectives, as part of Vision 2030, namely: maximizing its assets, introducing new sectors and localizing modern technologies.

The fund developed eight strategic goals under three key approaches: investment, value realization and institutional approaches. These goals help achieve the fund’s objectives until 2025.

Meanwhile, the PIF introduced a new department for investment development management, to monitor and link all investment portfolios.

Al-Rumayyan noted that a greater momentum will be witnessed in the coming period, as capital expenditure on new projects will be much higher, ranging between SAR 150-SAR 200 billion annually and at nearly SAR 2 trillion until the end of 2025, which will directly reflect on employment rates and the national economy.

The PIF will focus on 13 sectors as part of its core domestic strategy: Healthcare; Utilities & Renewables; Telecoms, Media & and Technology; Food and Agriculture; Automotive; Transport & Logistics; Real Estate; Aerospace & Defense; Construction & Building Components and Services; Entertainment, Leisure & Sports; Financial Services; Metals & Mining; and Consumer Goods & Retail, Al-Rumayyan concluded.