Public Investment Fund Program

The Public Investment Fund Program is one of the executive programs to achieve Saudi Vision 2030. It was launched in 2017 and focuses on realizing the second pillar of the Vision, which is creating a thriving economy.

The Public Investment Fund is commonly abbreviated as PIF, and it is the sovereign wealth fund owned by the government of the Kingdom of Saudi Arabia. It plays a crucial role in achieving the goals of Saudi Vision 2030 and the national economic transformation by contributing to economic diversification and the development of promising sectors, both domestically and globally.

The Public Investment Fund has secured the sixth position globally among sovereign wealth funds. By the end of the second quarter of 2023, its assets under management exceeded USD776 billion, according to a report from the Sovereign Wealth Fund Institute (SWF Institute), which specializes in studying government investments and sovereign wealth funds.

The Public Investment Fund was established in 1971 by Royal Decree No. (M/24) during the reign of King Faisal Bin Abdulaziz Al Saud. Throughout the decades, the fund has served as a national economic catalyst, contributing to the establishment of major domestic companies and the creation of several leading companies within the Kingdom. In 2015, a qualitative shift in the PIF's journey was achieved with the issuance of a resolution by the Council of Ministers linking it to the Council of Economic and Development Affairs.

In 2017, the PIF Program 2018-2020 was launched. In 2019, the PIF Law was issued, along with the issuance of the second edition of the PIF Program 2021-2025 in 2021.

The program was launched as part of an integrated system of programs initiated by the Council of Economic and Development Affairs to achieve the Saudi Vision 2030. It aims to contribute, alongside other programs, to the economic and social development of the Kingdom, enhance its global standing, and showcase its investment strength.

The program is overseen by a committee chaired by Crown Prince and Prime Minister, His Royal Highness Prince Mohammed Bin Salman Bin Abdulaziz. The committee includes several ministers as members.

The PIF program aims to contribute to enhancing the economic and investment sustainability of the Kingdom. Its main objectives include maximizing assets, launching promising local sectors, localizing the latest technologies and knowledge, and building strategic economic partnerships that deepen the Kingdom's role in the regional and global landscape.

The Public Investment Fund applies mechanisms and criteria derived from investment policies aimed at ensuring diversification of the investment portfolio and achieving investment alignment among those investments.

As part of the program's efforts to contribute to economic development, eight strategic pillars were developed. Through these pillars, the aim is to design and develop its initiatives in various sectors and asset categories across a wide geographical scope to achieve its ambitions for 2025 and aspirations for 2030. These pillars encompass investment pillars, value creation pillars, and institutional pillars.

The PIF invests in some of the world's most innovative companies. It works to develop an investment portfolio that includes exceptional local and global investments across various sectors and asset classes on a wide geographical scale.

On a global scale, the PIF collaborates with international entities following a strategy that focuses on achieving financial returns. The fund has successfully formed extensive relationships with various global investors, asset managers, investment banks, and international brokerage firms. It has become one of the largest investment entities globally. The PIF is the principal investor in SoftBank Vision Fund, which invests in the technology sector. It has also invested in the Blackstone Infrastructure Fund, Lucid Motors, and Uber, as well as other investments in Russia, Brazil, France, and more.

At the local level, the PIF assists in the development of key sectors by creating meaningful investment opportunities. This contributes to empowering the private sector in various industries, and the PIF is committed to diversifying sources of income in alignment with the goals of Saudi Vision 2030.

The PIF operates through six different investment portfolios that cover all of its local and international investments. These include investments in Saudi companies, investments aimed at developing promising sectors, major Saudi projects, real estate investments, infrastructure development projects in the Kingdom, as well as strategic and diversified global investments.

Since its inception until the end of 2020, the PIF has been successful in maximizing its assets and increasing the total returns for its shareholders. The fund has seen its asset size grow, under management, to approximately three times its value, from SAR570 billion at the end of 2015 to around SAR1.5 trillion at the end of 2020. Additionally, PIF has expanded by establishing numerous leading national companies, founding more than thirty national companies in ten vital sectors. It has also created over 331,000 direct and indirect job opportunities and initiated major national projects such as NEOM, the Red Sea Project, Qiddiya, Roshn, Amaala, Diriyah Gate, Boutique Group, and CEER. These initiatives are expected to generate hundreds of thousands of direct and indirect jobs and increase PIF's contribution to non-oil gross domestic product (GDP).

In 2021, the PIF launched several pioneering and ambitious projects as part of its 2021-2025 Strategy to achieve the goals of Saudi Vision 2030. These projects include The Rig, inspired by offshore oil platforms, Soudah Development Company, and Jeddah Central Development Company.

The PIF Strategy 2021-2025 aims to achieve economic growth, enhance the quality of life, and realize the concept of comprehensive and sustainable development across various traditional and modern sectors. This strategy was approved by the PIF Board of Directors, chaired by His Royal Highness Prince Mohammed Bin Salman Bin Abdulaziz, in 2021.

One of the key targets of the PIF by the end of 2025 is to create 1.8 million direct and indirect jobs and invest up to SAR1 trillion in new local projects. Additionally, the PIF aims to contribute cumulatively to the non-oil GDP through its subsidiaries by SAR1.2 trillion. The PIF also targets to exceed assets worth SAR4 trillion by the end of 2025.

The PIF works on injecting local investments into new projects focusing on thirteen vital and strategic sectors. The goal is to increase the local content level to 60 percent within the PIF and its affiliated companies. This initiative aims to diversify revenue sources and harness resource potential effectively.

The PIF has achieved significant milestones in its journey, including the establishment of eighty-five companies since 2017, such as Fund of Funds Company "JADA", NUPCO, and Real Estate Refinancing, among others. These endeavors have contributed to the creation of more than 560,000 direct and indirect jobs across various promising sectors, including real estate development, infrastructure, tourism and entertainment, transportation, recycling, clean energy, and more.