PIF to invest SAR 83 bln in 2018, says MD

Saudi Arabia’s Public Investment Fund (PIF) will invest around SAR 83 billion in 2018, managing director Yasir Al-Rumayyan said on the sidelines of a press conference.

A total of SAR 42 billion, or 51 percent, of these investments will go towards mega projects including NEOM and the New Jeddah Downtown, in addition to infrastructure and real estate developments.

Crown Prince Mohammad bin Salman in October announced the $500 billion NEOM mega-city, which will be set up on a total area of 26,500 square meters in northwest Saudi Arabia.

Earlier in the same month, the PIF announced a plan to redevelop the Jeddah Corniche into a mixed-use project, at an estimated cost of SAR 18 billion over ten years. Construction on the ‘New Jeddah Downtown’ development is expected to start in Q1 2019 and the first phase is scheduled for launch in Q4 2022.

PIF will allocate around SAR 16.5 billion to the companies that will undertake these investments, Al-Rumayyan said.

In addition, a total of SAR 14 billion will be spent on transport projects, while SAR 10 billion will be directed to new business sectors, he added.

The Saudi wealth fund’s investment portfolio reached SAR 840 billion in 2017, compared to SAR 570 billion in 2015. It invested SAR 70 billion in domestic and international projects during the current year.

In October, Al-Rummayan had said the fund was targeting annual returns of 8-9 percent by 2025-2030 across its different portfolios.

Commenting on the future of Uber, in which PIF has invested $3.5 billion, Al-Rumayyan said the outlook for the ride-hailing app was positive.

Uber’s revenues have doubled since the PIF’s investment, he added.

PIF acquired a 5 percent stake in the company last year, and also holds a position on the board of directors.

The fund will likely target more strategic investments worldwide over the coming year, Al-Rumayyan said.