RIYADH: When Saudi Arabia announced its Vision 2030 in 2016, aimed at accelerating the growth of the non-oil sector, skeptics doubted that a country that had relied heavily on oil revenue for so many decades could execute it perfectly.
Six years on, the country’s progress in non-oil sectors indicates that the Kingdom is moving in the right direction, driven mainly by the efforts of its Public Investment Fund, which is still maximizing its assets for the Saudi economy.
As part of the PIF’s 2021-2025 strategy, it is spearheading new economic and business opportunities in the Kingdom and reshaping the face of Saudi Arabia in the world.
PIF is currently one of the largest and most influential sovereign wealth funds in the world, with total assets under management of approximately $620 billion.
Since 2016, the PIF has founded 50 companies, including the recently launched Saudi Coffee Co., and in total these companies have generated more than 500,000 direct and indirect jobs.
From real estate and infrastructure to recycling and clean energy, PIF has marked its presence in 13 strategic sectors and aims to create more job opportunities in the years to come.
PIF has formed these companies to directly benefit the private sector and citizens of Saudi Arabia as they generate wealth and new job opportunities. Notable examples include the giga-projects owned by the PIF, namely NEOM, The Red Sea Development Co., Qiddiya and ROSHN.
PIF has also created entities such as National Security Services Co., Saudi Arabian Military Industries and Soudah Development Co.
Additionally, several companies owned by PIF have signed contracts with private sector companies, helping to accelerate the growth of the broader economy.
Citing one example, the Red Sea Development Co. signed over 800 local and international contracts worth over $5.3 billion in April 2022.
ROSHN, PIF’s real estate company, has signed a contract with Saudi-based Retal to develop its Sedra community project in Riyadh.
Qiddiya Investment Company last December awarded a Franco-Saudi joint venture a billion-dollar contract to build the Six Flags Qiddiya entertainment attraction.
“The fund has invested in multiple sectors, more than any other regular investment fund, and we should see the fruits of those investments this year and in 2030,” Razeen Capital CEO Mohammed Al-Suwayed told Arab Arab. a securities advisory firm. New.
The fund has invested in multiple sectors, more than any other regular investment fund, and we should see the fruits of those investments this year and in 2030.
Mohammed Al-Suwayed, CEO of Razeen Capital
An oasis of opportunity
Meanwhile, PIF has also created a new department specifically responsible for ensuring national growth and maximizing returns on investment. The Fund aims to expand opportunities for Saudi businesses, improve the national supply chain and increase its contribution to local content to 60% by 2025.
The PIF works with the Shareek program, led by Saudi Crown Prince Mohammed bin Salman, to create public-private partnerships.
The PIF also aims to increase the private sector’s contribution to the national gross domestic product to 65% and unlock domestic investments worth $1.33 trillion by the end of this decade.
PIF will develop 70% of the Kingdom’s renewable energies, in line with Vision 2030
PIF Governor Yasir Al-Rumayyan
Green light for sustainability
Understanding the need to protect the environment, PIF invests in many green projects to achieve the ESG objectives of Vision 2030.
The PIF plans to plant 10 million trees and launch a national renewable energy program to increase the share of renewable energy in the Kingdom.
“The PIF will develop 70% of renewable energy in the Kingdom, in line with Vision 2030,” said PIF Governor Yasir Al-Rumayyan.
He added that PIF’s recent investments in sustainable companies like ACWA Power and Lucid Motors show how the fund is working towards a sustainable future.
Al-Rumayyan also highlighted the importance of the PIF’s voluntary regional carbon market in helping the Kingdom achieve its goal of net zero carbon emissions by 2060.
The VCM is the first of its kind in the Middle East and North Africa and will help companies reduce their carbon footprint by offsetting their carbon emissions.
The VCM is set to launch in 2023, and five major Saudi companies have already signed on as founding partners – Aramco, SAUDIA, ACWA Power, Ma’aden and ENOWA, a subsidiary of NEOM.
The PIF also launched Sudair Solar PV, the first project under the Fund’s renewable energy program. This solar project, once completed, should meet the energy needs of 185,000 households in the Kingdom.
A force to be reckoned with
Since 1971, the glorious journey of the PIF has demonstrated how a country’s sovereign wealth fund can be used wisely and effectively to improve its economy and the living conditions of the general public.
Thanks to its massive investments, the PIF has established itself as a key player in the international economic sector and also facilitates diversity and the transfer of knowledge within the Kingdom.
As the PIF progresses in elevating Saudi Arabia to new heights, several monumental initiatives that could revolutionize the quality of life for people in the country can be seen in the future.