Saudi Arabia’s Public Investment Fund (PIF) announced a new five-year investment strategy, including its own Vision Realization Program (VRP) 2021-2025, with the goal of doubling its assets to 4 trillion riyals ($1.07 trillion) by 2025, according to comments made by Crown Prince Mohammed bin Salman in a public appearance on Sunday.
The launch of a new VRP for 2021-2025 follows on what the fund calls its success of its previous VRP for 2018-2020. The strategy will ensure PIF “continues to grow as a global investment powerhouse and partner of choice for innovative and transformative businesses worldwide. It will also enable the creation of new industries and opportunities that will shape the future global economy, while driving Saudi Arabia’s economic transformation,” the fund said. The five-year strategy was approved during a recent PIF Board meeting the Crown Prince.
Yasir Al-Rumayyan, Governor of PIF.
In addition to growing its assets, the fund plans to contribute $320 billion to Saudi Arabia’s non-oil GDP in the same timeframe. The fund boasts that it has already created 10 new sectors, launched over 30 new companies, and created 331,000 jobs in Saudi Arabia over past four years.
The new plan would make the fund “the leading catalyst for Saudi Arabia’s economic transformation and diversification,” the prince said in a speech on state TV.
The Public Investment Fund is increasingly driving the Kingdom’s efforts at economic diversification away from oil, the primary goal of the Kingdom’s Vision 2030 economic and social blueprint launched in 2016 and continuing for the next decade.
According to a press release from the PIF, the investment powerhouse will focus on funding new human futures by improving quality of life domestically and internationally, driving environmental and economic sustainability, and developing new sectors and creating new job opportunities.
PIF will focus on 13 sectors as part of its core domestic strategy: Healthcare; Utilities & Renewables; Telecoms, Media & and Technology; Food and Agriculture; Automotive; Transport & Logistics; Real Estate; Aerospace & Defense; Construction & Building Components and Services; Entertainment, Leisure & Sports; Financial Services; Metals & Mining; and Consumer Goods & Retail, the PIF said.
“Over the last four years, PIF has demonstrated its important role in contributing to the Kingdom’s economy, in line with the ambitions of Vision 2030. Up to the end of 2020, we tripled assets under management to nearly USD400 billion, create 10 new sectors and generate 331,000 direct and indirect jobs,” Yasir Al-Rumayyan, Governor of PIF, said. “”And as part of our strategy, we will continue to drive the economic transformation of Saudi Arabia and enable the private sector. We also partner with innovative, transformative and disruptive companies around the world to consistently serve as an important catalyst for the development of the industries and opportunities of the future. Core to our strategy is our focus on funding new human futures by improving quality of life, driving environmental and economic sustainability, and developing new sectors and jobs.”
A key element of PIF’s success has been the strategic economic partnerships the Fund has developed with many of the world’s leading investors and businesses. The VRP 2021-2025 will enhance these partnerships, providing investors with access to untapped investment opportunities, creating synergies and value for the global community, the PIF said.
