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- The Public Investment Fund is a key player in the Kingdom’s diversification strategy
RIYADH: Saudi Arabia’s sovereign wealth fund is on track to surpass its objective for the second quarter of 2022, and reach SR1.8 trillion ($480 billion) in assets under management, the fund’s Governor Yasir Al-Rumayyan said.
The Public Investment Fund, or the PIF, is a key player in the Kingdom’s diversification strategy, particularly in achieving the Vision 2030 goals.
Al-Rumayyan said the fund established a department called National Development to focus on supporting local supply chains, and increasing the role of local suppliers in the ecosystem.
The new department, he told a Saudi budget media forum in Riyadh on Monday, will assess and monitor, on a quarterly basis, the impact of projects and companies on the economy — in terms of job creation, and increasing local content. He said the Kingdom’s Shareek program aims to strengthen cooperation between the public and private sectors and increase local investments to reach SR5 trillion by 2030.
Al-Rumayyan said the fund has offered stakes in several companies for initial public offering in the Saudi stock exchange. Very recently, it offered part of the fund’s shares in stc, in the first-ever secondary public offering.
The PIF chief said efforts are also underway to boost the fund’s contributions to the green energy sector in line with the Saudi Green Initiative.
He cited Al-Sudair Solar Power Plant as an example. The project will be developed by ACWA Power to meet the power needs of 185,500 housing units.
Al-Rumayyan said the PIF is also working on launching a platform for trading carbon in the Middle East.
Despite all the challenges posed by the coronavirus disease pandemic, the fund was able to maintain its performance and to take advantage of many investment opportunities, he added.
Al-Rumayyan said the fund seeks to develop many other sectors, as the capital of the fund will help ensure long-term investment.
Since the approval of its new strategy in 2016, PIF has created 47 companies and generated more than 400,000 jobs directly and indirectly through their projects and ventures, Al-Rumayyan added.
As well as working towards the Vision 2030 goal, the PIF also has targets to hit before then.
Al-Rumayyan said: “The PIF continues to achieve its 2025 strategy, which is to pump about SR1 trillion in new national projects, and to increase its own assets under the fund’s management from SR1.8 trillion to SR4 trillion, and contribute in the national non oil sector with an amount reaching SR 1.2 trillion.”
The PIF governor highlighted other areas of investment in the Kingdom, including the fact that about 70 percent of the Red Sea Development contracts were signed with Saudi companies, worth more than SR13 billion.
King Abdullah financial center signed contracts worth SR10 billion to complete and activate the center, while real estate developers ROSHN also signed strategic partnerships with Saudi companies to push ahead with its first phase in Riyadh.
Qiddiya company signed contracts worth more than SR5.5 billion to complete the primary phase of its infrastructure and to develop its first entertainment facility “Qiddiya six flags.”
Additionally, investment management firm Jada Fund of Funds aims to enhance the small and medium enterprise sector by investing SR1.2 billion in 17 investment funds — with SR200 million already handed over and helping to create more than 4,000 jobs.
The Fund contributed in green energy sectors in line with the Kingdom’s initiative, launching renewable energy projects, including the Sudair Solar PV, which will be implemented by ACWA Power and will meet the needs of 185,000 housing units.
Tarshid, National Energy Services Company, has replaced more than a million and a half of regular street lighting lamps with LEDs.
The Fund’s presence on the world stage has grown as it invests in various global markets, which contributes to diversifying sources of income and bringing international expertise to the Kingdom.
Firms to see investment include Lucid Motors, with about $2.9 billion, bringing global investors at its initial public offering listing in July 2021, making it one of the most significant companies in the electric vehicle sector.
The company's value has risen from $3 billion to $65 billion.
PIF also ploughed $2.8 billion into Indian companies, such as the mobile network operator Jio Platforms and the conglomerate Reliance.