Via Rachel Ziemba in fdiintelligence.com: While the fund is still investing abroad, especially via its subsidiaries like Alat, new flows are smaller and tend to have local economic development goals and technology transfer as a priority. The biggest shift has come in portfolio flow rather than FDI, with PIF pulling back on some of its foreign portfolio holdings, including those in the US gaming industry. Some of these sales are just profitable exits, but prioritisation is underway. The country’s efforts to attract FDI have sparked an uptick in project announcements (according to fDi Markets) and actual inflows according to government data. However, coming close to the ambitious goal of $100bn in FDI per year by 2030 will be tough. As a result, local public capital may continue to be deployed to try to attract foreign capital. An area of recent success is in artificial intelligence and cloud computing, with Google recently signing a deal with PIF subsidiaries to help develop data centres in the country. Beyond this, Saudi Arabia mandates that foreign companies seeking government contracts set up regional offices within the country, hoping these will be a vehicle for FDI and other investment. Some of these offices manage local wealth or advise the government, but the government hopes others will lead to FDI.
