Public Investment Fund (PIF)

The Public Investment Fund, referred to as 'PIF', is the sovereign wealth fund owned by the government of the Kingdom of Saudi Arabia, and a pivotal factor in achieving the targets of Saudi Vision 2030 and the national economic transformation. It achieves this by contributing to the diversification of the economy and the development of emerging and promising sectors both domestically and internationally.

The fund was developed as part of the vision programs, with its main mission being to invest in companies, real estate, and financial assets on behalf of the Kingdom's government. It is a sovereign fund, unlike all other funds in the Kingdom, which are organizationally linked to the National Development Fund.

The fund ranks sixth among the largest sovereign wealth funds in the world, according to statistics from the Sovereign Wealth Fund Institute 'SWFI', which specializes in studying government and sovereign fund investments.

It is the sovereign wealth fund of the Kingdom, serving as its investment arm, one of the pillars of Saudi Vision 2030, and its key enabler. Over the course of five decades, it has spearheaded the Kingdom's economic development and diversification efforts. Its primary objective is to effect positive and sustainable change through long-term investments aimed at maximizing sustainable returns. Organizationally affiliated with the Council of Economic and Development Affairs, the fund holds a public legal status and operates with financial and administrative autonomy. The PIF stands as one of the world's largest sovereign wealth funds, with assets under management valued at over SAR2.63 trillion both domestically and internationally.

The fund owns investments and partnerships in several countries worldwide, and manages its operations from its headquarters in the capital, Riyadh. Additionally, it has three offices around the world, located in Hong Kong, London, and New York.

The Public Investment Fund was established by a Royal Decree issued in 1971, as an entity affiliated with the Ministry of Finance. In 2014, the scope of the fund's work was expanded, granting it the authority to establish new companies inside and outside the Kingdom without the approval of the Council of Ministers. In 2015, the responsibility for overseeing the Public Investment Fund was transferred from the Ministry of Finance to the Council of Economic and Development Affairs. In 2017, the Public Investment Fund Program (2018-2020) was announced, defining the fund's targets and initiatives aimed at achieving Saudi Vision 2030.

In 2019, the Public Investment Fund Law was established, granting the fund broader powers and authorities to define, implement, and achieve its objectives. In 2021, following the success of the initial program, the updated PIF Program was launched. A new work plan covering the period 2021-2025 was announced, aligning with the updated plans and objectives of Saudi Vision 2030.

The logo of the Public Investment Fund features its name in Arabic and English in a circular green frame, along with the establishment years in both the Hijri and Gregorian calendars. Inside the circular band is the national emblem of the Kingdom, represented by two crossed swords topped by a golden palm tree.

The Public Investment Fund manages its operations from its main headquarters in the capital, Riyadh, and operates under the leadership of a group of highly competent and specialized executives. It has two main administrations: a higher administration represented by a Board of Directors, chaired by His Royal Highness Prince Mohammed Bin Salman Bin Abdulaziz, the crown prince, prime minister, and chairman of the Council of Economic and Development Affairs, along with several ministerial members, in addition to the fund's governor. The other body is the executive administration, which comprises various general departments with different specializations. The Board of Directors is responsible for overseeing the fund's long-term strategies, investment policies, and performance. The governance model in the PIF cascades from the Board of Directors to the Executive Management. The Board of Directors includes five committees: the Executive Committee, the Investment Committee, the Audit and Compliance Committee, the Risk Committee, and the Compensation Committee.

The Executive Management of the PIF is responsible for reviewing strategic and operational activities, evaluating investment and non-investment proposals before submitting them to the Board of Directors and its committees for necessary decisions, as well as exercising the powers granted to it by the Board of Directors. At the level of the Executive Management, there are five committees: the Administrative Committee, the Committee for Nominating the Fund's Representatives in Subsidiaries, the Administrative Investment Committee, the Administrative Risk Committee, and the Administrative Liquidity Committee.

The PIF has an independent annual budget that funds its financial resources. The sources of funding for the fund's activities and investments are represented by four main resources: An increase in capital by the state, government-owned assets transferred to the fund, loans and debt instruments, and residual returns from investments.

By the end of the first half of 2023, the PIF ranked sixth among the world's sovereign wealth funds, with assets under management of around USD776 billion, according to a report by the Sovereign Wealth Fund Institute 'SWFI', which specializes in the study of government and sovereign fund investments.

The PIF is considered the active engine behind the diversification of the Kingdom's economy, by stimulating the development of future strategic sectors and maximizing the impact of its investments locally and globally. This effort aims to make one of the largest sovereign wealth funds in the world, as well as establishing strong economic partnerships that contribute to deepening the Kingdom's role and impact on the regional and global contexts.

The PIF Program is one of the executive programs of Saudi Vision 2030, and the program was launched with the aim of enhancing the fund's efforts as a leading economic catalyst for the Kingdom. It is directly concerned with achieving the second of the three main pillars of the Vision, which is the 'Thriving Economy' pillar. This pillar aims to develop and diversify the economy in the Kingdom by maximizing the assets and role of the fund as an effective element of economic growth. This is not limited to developing the Kingdom's wealth by investing in financially viable global projects, but also includes investing in local stimulating projects that can realize the growth potential of priority sectors in the Kingdom. These efforts create a positive economic impact in the form of job creation, contributing to the growth of non-oil gross domestic product (GDP) growth, increasing local content, thriving private sector, and improving the quality of life in general, as well as establishing the Kingdom's global leadership across all levels.

The PIF Program aims to achieve four objectives: maximizing the assets of the Public Investment Fund, launching new sectors through the fund, building strategic partnerships, and localizing technologies and knowledge. It is based on fundamental principles outlined for the main purpose of the fund. These principles include shaping the future through innovation, opportunity selection, and maximizing investment. The second principle is leadership in innovation by harnessing efforts to reshape sectors, support creativity, and achieve economic transformation. The third principle is excellence in building relationships through distinctive financial resources and human competencies, which create a wide and fruitful network of relationships. This involves harnessing energies to seize promising opportunities around the world. The fourth principle is inspiring the world through decisions aimed at developing sectors, advancing performance, and improving the quality of human life globally.

The Public Investment Fund has achieved massive investment and economic accomplishments, and reached important strategic targets, placing it in a prominent global position, and contributing to a clear positive impact at both the local and global levels. In terms of the investment portfolio, the growth in assets under management has nearly tripled since 2015, from SAR570 billion in 2015 to SAR1,500 billion by the end of 2020, and SAR1,980 billion by the end of 2021. It has also achieved an increase in total shareholder return, reaching 3 percent in 2014-2016, 8 percent in 2018-2020, and 20 percent in 2021.

At the local level, the PIF has contributed to activating thirteen strategic sectors and established around eighty-seven companies in ten strategic sectors, as well as creating 560,000 direct and indirect jobs by 2023.

The PIF launched its program for the period (2018-2020) on October 25, 2017. This program represents a three-year roadmap to achieve four main objectives: maximizing the value of the fund's assets, launching new sectors, localizing advanced technologies and knowledge, and building strategic economic partnerships.

On January 24, 2021, Prince Mohammed Bin Salman, the chairman of the Board of Directors of the PIF, approved the fund's strategy for the five-year period (2021-2025). This strategy is based on eight strategic pillars encompassing investment, value creation, and institutional aspects. These pillars include launching and developing local sectors, developing local real estate projects, and developing giga-projects. Additionally, the strategy focuses on growing and diversifying the PIF's global asset portfolio, supporting national development, enabling Vision 2030, and developing cooperation between investment portfolios. Moreover, it aims at creating strategic and operational value, diversifying financing sources, and strengthening the fund's financial position, while enhancing the institutional system of the PIF.

The approved strategy for the PIF for the years (2021-2025) aims to achieve several targets. These include injecting at least SAR150 billion annually into the local economy in a progressively increasing manner until 2025, and contributing through the fund's subsidiaries, to the non-oil GDP by a cumulative value of SAR1.2 trillion. Furthermore, the fund targets exceeding SAR4 trillion in assets under management by the end of 2025, and creating 1.8 million direct and indirect jobs. The program also aims for the fund to contribute to achieving the major goals by the end of 2030, with the value of assets under management reaching SAR7.5 trillion. Additionally, the fund and its companies aim to contribute to increasing the annual non-oil GDP by 7 percent.

The PIF has launched numerous diverse initiatives that serve as the cornerstone for realizing the aspirations of Saudi Vision 2030. These initiatives are designed to prevent overlap between their tasks and objectives while ensuring flexibility in identifying and monitoring opportunities on an annual basis. They have a timeline for implementation and management that extends until the end of 2025.

The pillar of launching and developing local sectors is based on four main pillars, from which a number of initiatives branch out:

- Enhancing localization and activating sectors on a wide scale

- The Initiative to Grow the Kingdom’s Aerospace Sector and Solidify its Defense Sector: It aims to establish a presence in the aviation and defense value chain to benefit from the expansion in the local market. As part of this initiative, the 'Saudi Arabian Military Industries' and 'The Helicopter Company' were established.

- The Initiative to Develop the Kingdom’s Automotive Capabilities by Localizing Research and Development and Manufacturing of New-age Materials: Its goal is to enhance the Kingdom's capabilities in the vehicle sector as a high-impact sector on GDP. This initiative is linked to the National Industrial Development and Logistics Program aimed at developing the automotive industry locally and localizing battery manufacturing. A partnership was concluded with a global lithium-ion battery producer, which represents an opportunity for electric vehicle projects.

The Initiative to Promote the Kingdom into a Global Transport and Logistics Hub: Its goal is to improve connectivity in the Kingdom's logistics infrastructure and operations. The initiative has made progress with the announcement of the acquisition by 'Elm', fully owned by the PIF, of a 100 percent stake in 'Tabadul' company. This acquisition has contributed to establishing a comprehensive logistics services platform, serving as an integrated service center to meet the needs of the entire logistics value chain, including customs, ports, and aviation.

The Initiative to Enable the Growth of the Kingdom’s Food and Agriculture Sector to Help Achieve a Sustainable Domestic Food Production System, Diversify External Food Supply Sources, and Ensure Food Security Resilience: The initiative aims to stimulate the growth of the food and agriculture sector in the Kingdom. It seeks to enhance the Kingdom's position as a hub for the halal products sector and a global distribution point. The initiative has made progress through the continued management by 'SALIC' company, owned by the PIF, of effective and specialized investment operations in the agricultural and livestock production fields, in addition to acquiring stakes in 'Almarai' and 'Americana' companies. This comes in addition to launching the 'Saudi Coffee Company' in 2022, which aims to support local coffee production and enhance its global presence. This initiative also aims to develop sustainable agriculture in Jazan province located in the southern region of the Kingdom, known as the homeland of Arabica coffee. Additionally, the Halal Products Development Company was established in 2022 to invest in and localize the Halal products sector in the Kingdom, covering food, cosmetics, and pharmaceuticals. It seeks to enhance the efficiency of the sector's ecosystem locally and for future exports to foreign markets, while fostering knowledge and innovation in this vital sector. Furthermore, in 2023, an agreement was signed with 'AeroFarms', an American company, to establish a company based in Riyadh. This endeavor aims to establish indoor vertical farms in the Kingdom and the MENA region.

The Initiative to Solidify the Kingdom’s Position as a Leader in The Construction and Building Components and Services for the Real Estate Sector: It aims to support the ambitions of the fund's real estate projects by securing supply chains for real estate projects, and focusing on strategic products, services, heavy equipment, concrete, cement, tiles, and basic industries. Through this initiative, the fund has launched several real estate development companies, including the establishment of the Saudi company 'PECSA' which aims to invest in the contracting sector, in partnership with 'POSCO' company. Additionally, it has initiated a joint project with 'Katerra' to introduce construction technology off-site with the first phase including the construction of 4,140 individual homes across the Kingdom. Furthermore, it acquired 40 percent of 'Jasara' company, a joint venture between Saudi Aramco and the Jacobs Group, specializing in project management services. The fund announced in February 2023 an investment of up to SAR5 billion through subscription in new shares, representing minority stakes in four leading national companies operating in the construction and building services sector. These companies include 'Nesma & Partners Contracting,' 'El-Seif Engineers & Contractors,' 'Al-Bawani Holding,' and 'Al-Mabani General Contractors.' This investment aims to empower the construction and building services sector and enhance local supply chains and supplies for current and future projects in the Kingdom.

- Diversifying revenue sources

- The Initiative to Diversify and Enrich Entertainment, Leisure, and Sports Experiences in the Kingdom to Create a More Vibrant Society: It focuses on developing the entertainment and tourism sector by creating new tourist destinations, with the goal of increasing domestic tourism and reaching a target number of tourist visits with overnight stays by 2030. The PIF has invested in this initiative through one of its companies, 'Saudi Entertainment Ventures', by exploring various opportunities to enhance the entertainment experience in the Kingdom. This includes introducing new products and options such as cinemas, entertainment complexes, amusement parks, and theaters. Additionally, the fund has sponsored events that contribute to enabling and developing new sectors like sports, entertainment, and tourism. For instance, it has supported the activation of the marine cruise ship sector in the Red Sea by establishing necessary infrastructure like ship reception terminals and waterfront facilities. Furthermore, the fund has invested in building a fleet of marine vessels and sponsored sports activities such as the historic Diriyah Event, Formula E, and the Saudi International Golf Championship.

- The Initiative to Support the Growth of the Financial Sector; a Key Enabler of the Kingdom’s Vision 2030: It aims to bolster leading financial services entities and align with the Financial Sector Development Program. Among the notable achievements of PIF's subsidiaries are Tadawul's successful completion of the initial public offering of Saudi Aramco in 2019, the transformation of the National Commercial Bank (now Saudi National Bank) into the Kingdom's leading bank, with digital banking services penetrating over 50 percent of active users. Additionally, Samba Financial Group entered into an agreement with the Saudi Industrial Development Fund for documentary credit operations to facilitate access to fixed assets. In 2019, Riyad Bank was honored as the Fastest Growing Bank in the Kingdom at the Arabian Business Saudi Awards. Furthermore, the establishment of 'the Gulf International Bank - Saudi Arabia' in 2019, jointly owned by the fund and Gulf International Bank - Bahrain, marked a significant milestone. The Saudi Real Estate Refinance Company also inked an agreement in July 2020 with the General Pension Fund (now the General Organization for Social Insurance) to acquire a real estate financing portfolio valued at approximately SAR3 billion. Moreover, the merger of the Samba Group into the National Commercial Bank led to the formation of the Saudi National Bank, boasting assets worth SAR837 billion and a market share of approximately 30 percent.

- The Initiative to Invest Opportunistically Across Diversified Sectors, such as security, education, and oil field services and equipment sectors, including security, education, and oil field services and equipment. This includes establishing the National Company for Security Services (SAFE), which aims to enhance the private security and services sector in the Kingdom by offering services aligned with top standards and technologies. Additionally, the initiative focuses on developing 'TAQA' company and expanding its investments in oil field services and equipment to become a leading regional entity. Moreover, it seeks to empower 'Dussur' company as a strategic investor in advancing promising industries within the Kingdom.

- Utilizing the potential of resources

- The Initiative to Support the Growth of the Metals and Mining Sector; a key Enabler of the Kingdom’s Vision 2030: The minerals and ‏mining sector is considered one of the most promising sectors in the Kingdom. The Kingdom aims to increase the contribution of this sector to the economy, making mining the third pillar of the Saudi economy after oil, gas, and petrochemicals. The Public Investment Fund plays its role in the sector through the Saudi Arabian Mining Company 'Ma'aden', where it has achieved an increase in mineral exploration activities through the use of advanced technologies, and the commercial operation of Ma'aden's new projects in the fertilizers, aluminum, and gold sectors, as well as completing the initial stages of developing future growth projects in various mining sectors.

The Initiative to Leverage the Kingdom’s Natural Potential to Grow the Utilities and Renewables Sector: Through this initiative, the fund seeks to bolster the Kingdom's local absorption capacity in the sector and embrace suitable technologies to mitigate the carbon footprint while enhancing financial returns and developmental impact. Significant strides have been made in this initiative, exemplified by the acquisition of stakes in 'ACWA Power', a company specializing in the development, investment, and operation of power generation and water desalination plants. Furthermore, the establishment of the Saudi Investment Company for Recycling underscores the commitment to managing various types of waste, including construction and demolition waste, municipal solid waste, hazardous industrial waste, and electrical and electronic equipment waste. Notably, in 2019, the company achieved a milestone with the acquisition of 'GEMS', a leading firm in hazardous industrial waste management. Additionally, the establishment of the National Energy Services Company 'Tarshid' in 2017 reflects the Kingdom's dedication to fostering the energy efficiency sector and diversifying income sources for the local economy.

- Improving the quality of life

- The Initiative Stay at the Forefront of Innovation to Improve the Healthcare Sector: It seeks to enhance the fund's role as a key enabler of the sector and improve healthcare services and products in cooperation with the private sector. Among the fund's efforts is the study of establishing a company specialized in pharmaceutical manufacturing, and involving the private sector to accelerate the realization of value. The fund's portfolio, which includes the National Unified Procurement Company for Medicines, Medical Devices, and Medical Supplies 'Nupco', has effectively contributed to the localization of the pharmaceutical industry in the Kingdom. This was achieved through the signing of a memorandum of understanding with the Ministry of Defense 'Medical Services' to manage procurement, contracts, and budget transfer. Additionally, an agreement with the Spending Efficiency Realization Center has been initiated to serve as the central purchasing unit in the medical field.

- The Initiative to Develop the Kingdom’s Innovation Capabilities by Localizing the Technology Sector and Developing the Telecom and Media Sector: The fund has made progress in this area through the establishment of the Saudi Information Technology Company 'SITE', to design, develop, and operate secure digital computing and provide cybersecurity. Additionally, 'Elm' company has signed an agreement to acquire shares in 'Tabadul' company.

- The Initiative to Unlock the Development and Growth of the Retail and Consumer Goods Sector: It aims to support the development of 'Noon' company, one of the PIF's subsidiaries, to become the leading digital platform for e-commerce in the Middle East and North Africa region. As part of the efforts to support it, millions of products are being supplied locally and globally, with the provision of a platform for local sellers and distributors, attracting visitors through its platforms and processing payments, and building efficient networks in the Middle East and North Africa region, as it operates several huge warehouses and owns a wide and massive delivery fleet.

The pillar of developing local real estate projects includes two themes, from which a number of initiatives branch out:

- Develop Real Estate Projects in the Kingdom

The Initiative Develop Real Estate Projects in the Central Sector: It aims to upgrade living patterns and competitiveness in Riyadh and neighboring cities. It includes ten projects that ensure the development of new forms of urban life, business centers, infrastructure projects, and new destinations. The Initiative to Develop Real Estate Projects in the Western Sector: It aims to enhance the attractiveness and developing living patterns in the western sector, including the areas neighboring Makkah-al-Mukarramah, al-Madinah al-Munawwarah, and Jeddah Governorate. The initiative includes ten projects, including the New Jeddah Downtown project. The Initiative to Develop Real Estate Projects in the Southern Sector: It covers the areas adjacent to and within Aseer province and its cities, and covers four development projects in the sector. The Initiative to Develop Real Estate Projects in Northern and Eastern Sectors: It covers ten projects, including the 'Amaala' project, one of the megaprojects in the Kingdom, which is expected to be at the forefront of the luxury tourism market.

- Developing real estate projects through diversifying development

The Initiative to Support the Development of the Real Estate Sector Through the Setup of New Companies and Centers of Excellence: It aims to develop the real estate sector at all levels, starting from development, contracting, and services companies to operations companies. The initiative has made progress by overseeing a series of investments in real estate development, including companies such as 'al-Akaria' and 'Dur' Hospitality, as well as launching a series of new companies in this sector, such as the real estate registration services company. The initiative also involves launching and expanding the fund's Centers of Excellence, enhancing quality practices, and gaining more cooperation at the portfolio level.

- Building and developing giga-projects

Developing Neom project to be an innovative ecosystem that contributes to shaping a new future, and forms a hub for entrepreneurship and innovation. The project's strategy is based on sixteen sectors: energy, water, transportation, biotechnology, food, manufacturing, media, entertainment, culture and fashion, technical and digital sciences, tourism, sports, design and construction, financial services, health and wellbeing, education, and living. Four regions have been announced within the Neom project, including 'The Line' city, which aims to provide an attractive environment for creatives, entrepreneurs, and investors. 'Trojena' city, which is a global destination for mountain tourism in the Kingdom. 'Oxagon' city, which is a destination that stimulates economic growth in Neom and the Kingdom in general. It was established to be the future of advanced and clean industries and an innovation center. It will be an automated maritime port supported by a smart supply chain network. The 'Sindalah' island project, which is the first luxury marine tourism destination in Neom.

The Red Sea Development Initiative: It is a project to create a luxury tourist destination that combines nature, culture, and adventure, to enhance the Kingdom's position on the global tourism map. The Qiddiya Project Development Initiative: It aims to make the Qiddiya region the capital of entertainment, sports, and arts in the Kingdom. It aspires to create an integrated destination that offers enriching experiences for visitors. Furthermore, the ROSHN project development, which aims to raise home ownership levels in the Kingdom and prepare residential units in all its regions.

- Growing the size of global assets under management and their returns

The Initiative to Invest Thematically in Megatrends: The fund strategically invests in many investment areas and follows a flexible approach through investing in public and private stocks, securities, financial instruments, real estate, and infrastructure investments. The Initiative to Invest Opportunistically Through International Partnerships: It aims to increase the Kingdom's presence on the global investment map, maximize the fund's assets, and forge strategic and economic partnerships.

- Diversifying the fund's portfolio

The Initiative to Diversify Exposure of PIF International Portfolio: The initiative works to diversify the Saudi economy away from total dependence on oil. It involves investing globally across different geographical regions, sectors, fields, currencies, and asset types. In line with this initiative, Prince Mohammed Bin Salman Bin Abdulaziz announced in October 2022, the establishment of five regional companies of the PIF. These companies target investment in the Hashemite Kingdom of Jordan, the Kingdom of Bahrain, the Republic of Sudan, the Republic of Iraq, and the Sultanate of Oman. This announcement followed the launch of the Saudi-Egyptian Investment Company in August 2022, with targeted investments of up to SAR90 billion in investment opportunities across various sectors.

- Supporting national development

The Initiative to Enhance Supply Chain Security and Localization: It aims to provide and secure supply chains and supply of products and services for real estate projects. It leverages the scale of these projects to promote the localization of such products within the Kingdom. The Initiative to Engage with the Private Sector in the fund's projects: It aims to contribute to increasing the participation of the private sector as an investor, financier, and supplier in the projects managed by the fund. This effort extends to initiatives targeting the development of promising sectors. The Initiative to Support Saudi Vision 2030 by Investing in Suitable Opportunities from other VRPs: It seeks to cooperate the program of the PIF with other programs as the largest investment force in the Kingdom, within the fund's investment strategy in various sectors.

- Developing aspects of cooperation

The Initiative to Create Strategic and Operational Value Across PIF’s Portfolio Through the “PIF Way”: It seeks to establish a comprehensive network of the fund's subsidiaries at the level of geographical regions and sectors, with a focus on increasing cooperation and integration among them. It also aims to enhance collaboration among the Fund's local companies. The 'Fund's Way' initiative was launched during the first edition of the Partners Forum in October 2019, themed 'Achieving Success in the Digital Revolution Era', attended by about two hundred CEOs of seventy-five companies from the fund's portfolio, along with some of its staff.

-Achieving strategic value

The Initiative to Establish and Grow PIF’s Center for Governance to Drive Sustainable Value Creation Through Board Representatives: It aims to ensure the continuity of support, guidance, and development for these representatives, and to promote the role of the fund as a supporter of economic diversification in the Kingdom, and to increase the impact of its investments by developing a governance model for its subsidiaries. The Initiative to Establish and Grow PIF’s Center for Governance to Drive Sustainable Value Creation Through Board Representatives: It aims to play a leading role in environmental and social governance at the level of sovereign wealth funds and at the level of the global investment community. The fund has made progress represented by membership in the founding of the 'One Planet' initiative for sovereign wealth funds, and the launch of internal initiatives, including: the application of the provisions of the Paris Climate Change Agreement, the inclusion of environmental and social governance in the fund's investment policy document, and the focus of responsible investment policy on integrating environmental and social governance elements. Moreover, the fund engages its subsidiaries in environmental and social governance, excluding those not aligned with its values, and involves three major subsidiaries in integrating such elements into their long-term strategies, capital allocation decisions, and daily activities.

- Diversifying financing sources

The Initiative to Diversify Funding Sources and Attract Investments to PIF Projects: It aims to build an investment ecosystem among the fund's companies. This involves building the necessary capabilities to structure investment transactions and deals, launching and managing investment support tools, and expanding and strengthening the network of relationships between the fund and partners or investors, in addition to strengthening the institutional capabilities of the fund and its ability to manage investment partnerships. The Initiative to Initiate a Capital Market Program at PIF or its PCs: It aims to make the fund a leading and active entity in global capital financing. It also aims to further develop the financing strategy capabilities of the fund and implement it at its level and at the level of its subsidiaries, and to enable the fund or its subsidiaries to contribute to capital financing locally and globally.

- Capital recycling

The Initiative to Execute IPO Program for Qualified PIF Investments: It aims for the fund to be an active partner in local and global equity markets. This involves listing stakes in Saudi companies after ensuring the readiness of each asset to be offered in the public markets, which will support the development of the ‏Saudi stock market‏ 'Tadawul' through increasing the growth of the total market capitalization, increasing the number of listed companies. It also aims to encourage the private sector and foreign investors to participate in the Saudi markets. The fund has listed a number of its companies in this initiative, such as: the National Bank, ‏Saudi Telecommunication Company‏, and ‏Alimna Bank‏.

- Strengthening the institutional structure of the fund

The initiative to Establish PIF Center for Economic Insight: It aims to develop the fund's intellectual leadership in the fields of development and economic forecasting. It also contributes to the success of the Kingdom as a key driver for achieving economic impact. The fund has made progress in this initiative, represented by the launch and development of capabilities related to modeling and economic analysis tools, and the relationships between macro-economic institutions in the Kingdom. Additionally, it involves conducting an analysis of the fund's program on the expected economic impact by 2030. The initiative also entails developing and implementing the strategy of the Economic Foresight Unit, and developing two economic models: the structural model and the current model of the fund, as well as forming an advisory group for macroeconomics to serve as an advisory body on macroeconomic issues, comprising five experts and practitioners in economic theories.

The Initiative to Position PIF as a Digitized, Intellectually Leading Organization of the Future: Its aim is to position the fund as a leading entity in terms of digital capabilities within the system of sovereign wealth funds and the broad investment management market. This involves completing the implementation of the infrastructure by establishing the fund's data center and launching a number of supporting systems for information technology operations, such as the Enterprise Resource Planning (ERP) system, and the Enterprise Project Management (EPM) systems. Additionally, the initiative involves establishing a disaster recovery center for technical systems to build disaster management and business continuity capabilities.

The Initiative to Build a Common, Unified PIF Culture in a Fast-Growing Organization: It aims to enhance the alignment between the shared values, goals, behaviors, and practices of the fund. The initiative has made progress in the success of the Graduate Development Program, as it has trained about 160 graduates from the PIF Academy in cooperation with universities and educational institutions, such as the University of California, Berkeley, and the AMT Institute. The program offers specialization in four tracks: the General Track, the Project Management Track, the Investments Track, and the Real Estate Projects Track. The fund also contributed to the continued provision of internal and external training courses for its employees in cooperation with global training institutions.

The Initiative to Strengthen PIF’s Mandate and Achievements Locally and Globally: The fund plans to launch comprehensive communication materials with the targeted internal and external groups through electronic and non-electronic communication channels. The goal is to ensure the sharing of unified information, highlight the fund's strengths and performance, and increase content through publishing news and results across different stages and diverse outputs.

The PIF invests in many leading local institutions and companies in the Kingdom, and it is one of the entities that leads efforts to bring about positive and effective change in line with the targets of Saudi Vision 2030. Acting as a link between Saudi companies in a number of key sectors and the strategic priorities of the Kingdom, the fund owns in this portfolio a number of public and private companies with the ability to compete globally in strategic growth sectors. Additionally, the fund invests in local investment funds that focus on trading the shares of companies listed on the Saudi financial market 'Tadawul'. The fund focuses on improving and maximizing the value of its assets in the portfolio of investments in Saudi companies by working as an engine for growth and a main driving force for companies in their pursuit of achieving their goals and achieving leadership at the regional and global levels in the sectors in which they operate.

The PIF aims to direct strategic capital to high-priority sectors with great potential to enhance the growth and diversification of the Saudi economy. The fund has achieved remarkable achievements in the performance of this mission since the launch of the fund's program, as it focuses through the investments of this portfolio on developing and growing the priority sectors in the Saudi economy through direct and indirect investment in new and emerging sectors and companies in the Kingdom. This aims to contribute to accelerating the pace of diversification and enhancing the dynamism of the Saudi economy. Through its support for the private sector with the aim of developing and strengthening these strategic sectors, the fund seeks to generate knowledge and specialized technologies and provide job opportunities for Saudi citizens and residents. Between 2017 and 2022, the fund was able to establish and invest in many companies to develop and support priority sectors.

In line with the goals of economic diversification, housing, and quality of life in the Saudi Vision 2030, the PIF program plays a pivotal role in allocating capital to vital real estate and infrastructure projects in the Kingdom. In 2022, the PIF continued to achieve high value, making significant progress at the level of the portfolio of investments in real estate projects and Saudi infrastructure development projects. The portfolio of investments in real estate projects and Saudi infrastructure development projects includes projects across the Kingdom. These investments and projects aim to improve utilization, maximize the value of land, and develop vital infrastructure to support economic development.

The PIF aims to establish urban structures in major cities, develop housing and tourism projects, and attract real estate companies and capital from local and foreign investors. These real estate projects cover all regions of the Kingdom, targeting the enhancement of sustainable commercial development and the development of investment opportunities, and maximizing local economies in each region. Ultimately, these initiatives aim to benefit the growth of local communities and to enhance the prosperity of the Kingdom as a whole.

The giga-projects in the Kingdom are unique in terms of scope and ambition, which enhances the strategic aspirations of the Kingdom and its global reputation. The Saudi giga-projects portfolio continued its rapid growth and diversification of its activities in 2021, as its size tripled approximately. The Public Investment Fund allocates the portfolio of Saudi giga-projects to finance and develop unique large-scale and ambitious projects, by establishing large-advanced systems and launching new sectors in the Kingdom. These projects, each of which is distinguished by its size and its ability to bring about a major transformation in the Saudi economy, rely on technology and knowledge, which contributes to enhancing them at the level of the Kingdom. This portfolio includes five major projects in the Kingdom: (NEOM Project, Red Sea Project, Qiddiya Project, ROSHN Group, and Diriyah Company), thus supporting economic transformation efforts and encouraging investment in several sectors that can achieve high returns in the medium and long term.

The PIF strategically invests worldwide, both independently and through partnerships with international investors, injecting significant capital for long-term influence and returns for the fund and the Kingdom. The portfolio of strategic global investments has evolved into a well-balanced mix of long-term direct and indirect investments. It aims to support the fund's goals through strategic relationships and partnerships with innovative companies, investment managers, and major investors. The goal is to establish the Kingdom's global position and influence while investing in modern technologies. This strategy aims to shape the future of the global economy by fostering growth, creating new sectors and opportunities, and bolstering government-to-government relations, including bilateral and partnership investments between countries, as well as investments in funds related to or in cooperation with governments. Additionally, it seeks to develop and diversify the fund's assets and returns, enhance the Kingdom's global leadership in driving the future of the global economy, build its international reputation as a preferred investor and partner, and contribute to creating attractive opportunities for foreign investment in the Kingdom while supporting the localization of content and technologies. This portfolio comprises broad investments in innovative technology companies and sector leaders worldwide, fostering diversification of the fund's investments, cultivating long-term relationships, and establishing an influential global presence.

The portfolio of diverse global investments supports the objectives of the PIF and its long-term financial performance. It constitutes a key element in diversifying the fund's assets globally through investment in a wide range of asset classes and geographic regions to achieve balance and risk management. The diverse assets also contribute significantly to the comprehensive diversification of the fund's assets by adopting a sustainable strategic approach to asset allocation, enhancing wealth accumulation, and income generation. Moreover, it aims to maximize long-term returns through investment in international assets, fostering deep diversification of asset classes globally, including fixed income, public equity, private equity, real estate, infrastructure, alternative investments, hedge funds, and direct investments.

The portfolio relies on a precise methodology to achieve its objectives, represented in several specific criteria: working with an institutional investment vision to seize untapped investment opportunities, adding value through strategic asset allocation and the selection of securities, investment managers, and effective portfolio management that takes into account economic conditions. Additionally, it follows a risk management approach based on diversification, asset distribution, and providing protection against depreciation.

The Treasury Portfolio in the PIF operates in a fiduciary capacity, as it is a custodian of the fund's liquidity, and invests the available capital to achieve attractive returns, while effectively managing risks and ensuring the availability of capital to finance the fund's strategic objectives and fulfill its diverse obligations. The Treasury Portfolio supports investment and growth strategies in general by optimally utilizing the available liquidity to achieve the required returns within the specified criteria and investment guidelines. The Treasury also provides continuous liquidity assessment at the fund, forecasts its level, and identifies any deficit or financing requirement.

The investments in the assets of the Treasury Portfolio are based on a number of principles. These include preserving capital by investing in assets with a low probability of loss, managing the liquidity of the PIF to meet both binding and non-binding financial obligations, as identified through budgeting and cash flow management. Additionally, the aim is to minimize risks arising from foreign currency exposure to the lowest level possible by limiting investments to the SAR, USD, and other designated reserve currencies. Treasury investments are classified according to liquidity levels, with each level having its sub-components and investment guidelines that differ from others. These levels are: Level one - Working Capital Portfolio, Level two - Medium-Term Investments, and Level three - Investments in Bonds, Loans, and Sukuk (an Islamic instrument providing the same commercial equivalent to a conventional bond) in Local Markets.

It is an independent nonprofit institution that originated as an annual conference. In 2019, by Royal Decree, it underwent transformation into a civil institution named the 'Future Investment Initiative Institute.' This transformation aimed to establish it as a hub for continuous collaboration and global ideation in alignment with the Saudi Vision 2030. The annual conference draws attendance from investors, CEOs, and policymakers representing countries worldwide. They convene to deliberate on global investment opportunities and trends, aiming to bolster economic growth and tackle associated challenges.

The initiative was launched in 2017, with the announcement by Prince Mohammed Bin Salman Bin Abdulaziz, crown prince and prime minister, to organize the Future Investment Initiative in the Kingdom, and set the start date for the first edition, which was held on October 24-26 of the same year, with the participation of about 3,800 personalities from entrepreneurs. This was the event where the launch of the Public Investment Fund program and the NEOM project was announced.

In 2018, the second edition of the initiative was held in Riyadh on October 23-25, with the participation of 3,500 prominent figures in entrepreneurship. The value of the agreements of this edition reached USD60 billion in projects in the sectors of energy, housing, health, information technology, and communications. In 2019, the third edition was held under the title 'What is the Future of the Business World?' Held on October 29-31, with the participation of six thousand figures and three hundred speakers, the initiative discussed three main themes: a sustainable future, technology for the benefit of all, and an advanced society.

In 2021, the fourth edition was held virtually due to the COVID-19 pandemic, under the title 'The New Economic Renaissance', with the participation of Two hundred speakers and fifteen thousand viewers from around the world. In the same year, the fifth edition was held on October 26-28, under the title 'Investing in Humanity', with the participation of Two thousand delegations and five thousand participants from decision-makers around the world.

The Future Investment Initiative Institute organized the 'Global Priorities Summit' on March 30-31, 2023, in Miami, United States, with the aim of discussing the most important priorities for each segment of society, as the world undergoes social, economic, and geopolitical conditions and changes.

The Public Investment Fund (PIF) has established a specialized General Administration to support national development, enhance the economic impact of the fund's investments, and contribute to achieving the goals of Saudi Vision 2030. The National Development Division aims to achieve three main objectives: studying and enhancing the developmental and economic impact of the PIF's current and future investments, which includes participating in feasibility studies of the fund's local investments and assessing their impact on GDP, job creation, Saudization rates, and local content ratios; promoting the localization of new industries to diversify the structure of the national economy and foster knowledge transfer; and establishing new channels of cooperation with the Saudi Vision 2030 realization programs, enabling these programs to implement their initiatives through the fund's financial or non-financial support, aligning with the Kingdom's national strategies, participating in their preparation, and working in an integrated manner with government agencies to achieve the targets of Saudi Vision 2030.

Its objectives also include defining the strategic directions of the fund in relation to the economic and social development of the Kingdom and supporting their implementation, with a focus on the following aspects: Engaging the private sector: This is achieved through the participation of the private sector as an investor and partner in the fund's investments, as well as a supplier for the fund's major companies and projects. The administration has developed plans to enhance this participation to achieve desired objectives, including securing supply chains for major projects. The administration has conducted a study aimed at securing supply chains for the fund's major projects and enhancing growth opportunities for the private sector in this regard. Increasing localization: The administration aims to raise the level of local content in the fund's affiliated companies and considers this in the fund's future investments. Supporting organizational changes to enable national development: This involves formulating and amending the fund's internal policies to enhance private sector participation and increase the economic impact of the fund's investment portfolio, as well as encouraging its subsidiaries to implement these changes. Measuring the economic impact of the fund's programs: This is accomplished by developing a mechanism to periodically measure and calculate the fund's economic targets, and identifying ways to enhance the fund's performance to maximize the economic impact of its investments.

The Public Investment Fund launched the Fund's Training and Development Academy, in cooperation with global universities and institutes. The academy has included about 160 graduates in the Graduate Development Program and has trained about 675 employees over two years, enrolling them in 1,023 training programs, both internally and externally. It has also launched the 'Executive MBA' program, which was joined by about forty-one employees, in addition to providing a cooperative training program, in which fifteen engineering graduates were trained in cooperation with 'Lucid Motors', and some of the trainees obtained job opportunities there.

The PIF launched the activities of the PIF Private Sector Forum in Riyadh on March 14, 2023. The forum showcases opportunities for cooperation and partnership in various business sectors locally. The forum aims to enhance cooperation with the private sector and review the opportunities and partnerships provided by the PIF through its projects, programs, and affiliated companies. As the private sector is a consistent and significant partner, the PIF aims to contribute to supporting the Kingdom's thriving economic journey.

The forum's program included dialogue sessions discussing the available opportunities in commercial projects, commercial opportunities, and opportunities available to commercial projects. Additionally, it covered opportunities in the fund's giga-projects, and emerging sectors in the Kingdom, as well as commercial opportunities workshops presented by experts and specialists from the PIF and its affiliated companies. The forum featured an accompanying exhibition for the forum's events and the announcement of memorandums of understanding and partnerships.

The fund announced launching three initiatives to support and empower the private sector. The first is the launch of the 'Musahama' local content development program, which aims to increase the fund and its subsidiaries' contribution to local content to 60 percent by the end of 2025. The fund and its subsidiaries will work to contribute to enhancing the local content of the fund's company projects at all stages of their operations. The second initiative is the Supplier Development Program, which will support the development of the capabilities and skills of local suppliers to meet the growing requirements of the fund's subsidiaries. The third initiative is the launch of the Private Sector Platform, which aims to empower local private sector companies by making them aware of available opportunities and benefiting from them. The goal is to enhance their role as an investor and a key partner in the fund's investments and as a supplier in the fund's projects and portfolio companies.