PIF: catalyzing the Kingdom’s economic transformation 
Despite the sluggish global economic growth projected by the World Bank in the second half of this year, with weakness continuing in 2024 due to inflation pressures and tight monetary policy, the Public Investment Fund has demonstrated progress against its 2021-2025 strategy, achieving significant growth in its assets under management.
PIF recently released its official annual report for 2022, which highlights its achievements in meeting its annual targets.
As a key player in driving the Kingdom Vision 2030, PIF has continued to play a crucial role in enabling Saudi Arabia’s economic growth and promoting prosperity.
PIF was established in 1971 with the initial objective of establishing companies of foundational importance to the Saudi economy, including several national champions.
In 2015, the fund underwent an organizational restructuring and changed its reporting line to the Council of Economic and Development Affairs. In 2017, PIF announced its investment strategy for 2018-2020.
PIF’s assets under management grew from $152 billion in 2015 to $595.7 billion, including receivables from other parties worth $1.3 billion at the end of December 2022.
This improvement in assets under management is due to PIF’s continued efforts to enable Saudi Arabia’s economic transformation by investing in strategic industries, establishing new companies, and helping to shape a more prosperous future for generations to come.
I am confident that PIF will continue to be an agent for positive change by supporting economic diversification and creating an ecosystem that attracts both international and local investments and generates employment opportunities for locals.
PIF’s repositioning has not only enabled Saudi Arabia’s economy to progress at an accelerated pace but has also positioned PIF to be a cornerstone and key driver for the Kingdom’s Vision 2030 by achieving positive and sustainable economic and social change as well.
In addition to the substantial growth in assets under management, PIF has managed to improve the return on investments from as low as 3 percent in 2014-2016 to 8 percent in 2022 and has established 25 new companies and created 181,000 new jobs in Saudi Arabia.
PIF’s expansion efforts have resulted in the addition of 666 new employees in 2022, representing a 33 percent increase over 2021. This has led to a total headcount of 1,940 employees, with a Saudization rate of 82.5 percent.
Locally, PIF has established more than 30 companies across 10 strategic sectors, unlocking new fields to diversify Saudi Arabia’s economy. This has resulted in a 60 percent improvement in localization and investments in promising sectors. These achievements have supported PIF in generating over 331,000 direct and indirect job opportunities.
As a catalyst for the Saudi Vision 2030, PIF has launched the second phase of its strategy for 2021-2025. This strategic plan will continue to support PIF’s ambitious goals and contribute to diversifying the Kingdom’s economy.
I believe that PIF has succeeded in unveiling new investment opportunities locally and internationally that have not only supported economic and social transformation in Saudi Arabia but also created new prospects for non-oil GDP growth, which will generate more jobs, empower a thriving private sector and improve quality of life.
I am confident that PIF will continue to be an agent for positive change by supporting economic diversification and creating an ecosystem that attracts both international and local investments and generates employment opportunities for locals.
• Talat Zaki Hafiz is an economist and financial analyst. X (formerly known as Twitter): @TalatHafiz
