Public Investment Fund Companies are companies that the Public Investment Fund (PIF) has established or acquired partial or full shares in, locally or internationally. Acting as the Kingdom of Saudi Arabia’s sovereign wealth fund, the PIF works to develop its investment portfolio in accordance with the Public Investment Fund Law issued in 2019 by Royal Decree and a Council of Ministers’ Resolution.
Local and foreign companies
The PIF's investment and portfolio development powers include establishing and participating in companies and other special-purpose establishments within and outside the Kingdom, and entering therein as a sole partner or with a third party, as well as issuing securities for companies and other special-purpose establishments that the PIF owns or holds shares therein.
The PIF Law provides plenty of flexibility for the PIF to achieve its investment objectives, whereby companies founded or co-founded by the PIF in the Kingdom are subject to the Companies Law. Specific exemptions have been included from the provisions of the Companies Law in the articles of incorporation or articles of association of the companies in which the PIF owns more than 50 percent of capital.
Since its establishment in 1971, the PIF has continued its influential economic role in the realization of revenue for the Kingdom, and continues to contribute to the establishment of major vital companies locally. The PIF currently owns leading investment portfolios, based on investing in promising opportunities locally and globally, as one of the world's largest sovereign funds. From 2017 to the end of August 2023, the PIF has established about eighty-seven companies in thirteen strategic sectors.
PIF Program
Through its PIF Program launched in 2017, the PIF works to achieve the objectives of the Saudi Vision 2030, as a leading economic driver for the Kingdom and an effective component of the thriving economy pillar. Since its launch, the program has expanded the establishment of local companies in various areas, launched a number of major national projects, alongside the PIF's increased participation in non-oil gross domestic product (GDP).
The program continues to play its economic and investment role, based on an ambitious strategy to empower the private sector and launch promising sectors. It aims to raise the percentage of local content in the PIF and its subsidiaries to 60 percent, and create more than 1.8 million cumulative jobs by the end of 2025. The PIF and its subsidiaries further aim to contribute a cumulative SAR1.2 trillion to non-oil GDP of by the end of 2025.
PIF’s local companies
The PIF succeeded in establishing and launching a multitude of major national companies aimed at boosting the growth of the PIF's assets, by launching new sectors to diversify the Kingdom's economy, localize industries, and invest in promising sectors. Some of the PIF’s keynote local companies include:
- NEOM: Founded in 2019 following the launch of formulating NEOM's strategy in 2017, which is focused on the development of sixteen diverse sectors: energy, water, transport, biotechnology, food, manufacturing, media, entertainment and culture, fashion, technical and digital sciences, tourism, sports, design and construction, services, health and welfare, education and living.
- Red Sea Development Company (RSDC): The RSDC project was approved in December 2018 and is one of the companies working to provide a luxury experience in the tourism sector. Its work combines nature, culture, and adventure, and enhances the Kingdom's place on the global tourism map. RSDC will provide a variety of opportunities for companies to be part of one of the world's fastest-growing tourism markets.
- Qiddiya Investment Company (Qiddiya): Established with the launch of the Qiddiya Project in April 2018 and aims to make "Qiddiya" district the capital of entertainment, sports, and arts in the Kingdom. Qiddiya's vision is to create a globally recognized creative destination, as a unique combination of the most innovative experiences, and work to create distinctive buildings to house these activities and revive this vision.
- Roshn Real Estate Company (ROSHN): One of the PIF's companies and the national real estate developer, launched in mid-2020 and works to develop residential neighborhoods with international standards that meet the aspirations of Saudi society. ROSHN works to take advantage of the opportunities available in the real estate market as a result of growing demand for the housing sector in the Kingdom, as well as contributing to an increase in the ownership of housing units to 70 percent.
- AMAALA: This company aims to develop and manage "Amaala" project resorts on the Red Sea, where it will become a superior tourist destination, specializing in convalescence, health and therapy, to be one of the best luxury tourist destinations.
- King Abdullah Financial District Development and Management Company (KAFD DMC): Founded in April 2018 with the aim of accelerating the pace of work and development on an area of 1.6 million m, containing more than seventy towers, including office, residential, and hotel buildings to the highest international standards. The tallest tower in the district is the 380 m PIF Tower, which encompasses seventy-seven floors.
- Al-Elm Information Security Company (Elm): The company was established in June 1988, before it became a joint-stock company owned by the PIF in November 2007. Elm aims to provide many technical solutions, electronic products, and consulting services, as well as outsourcing digital solutions.
- ACWA Power Company: The company is engaged in the development, investment, and operation of electrical power and desalination plants. The PIF has acquired a 50 percent stake in ACWA Power, and its business has evolved to own sixty-two plants as assets for operation, construction, or advanced development in thirteen countries, with a total of over 3,500 employees.
- Saudi Arabian Investment Company (Sanabil): A wholly owned company of the PIF, Sanabil was founded in October 2009 with a capital of SAR20 billion, before its strategy was revised and updated in 2019. Sanabil’s strategy is based on private growth investments in various stages. The value of the company's assets reached about SAR30 billion by the end of the third quarter of 2020.
- National Unified Purchasing Company (nupco): One of the PIF's companies, nupco works to provide all purchasing and logistical services to secure pharmaceutical supplies and medical devices for health sectors in the Kingdom. The company aims to increase government spending efficiency in the field of healthcare by investing in logistics and digital infrastructure.
- Saudi Agricultural and Livestock Investment Company (SALIC): A wholly owned subsidiary of the PIF, SALIC was founded in 2009 with a capital of SAR4.8 billion. Its key role is to contribute to achieving the Kingdom's food security strategy through diversified domestic and external investments that yield financial returns to ensure sustainability and growth.
- Noon: One of the leading national companies, in which the PIF owns a 50 percent stake. Noon contributes to the development and expansion of the e-commerce sector, and its services extend to more than 120 cities and provinces in the Kingdom, as well as to all emirates and governorates of the United Arab Emirates and the Arab Republic of Egypt. It owns one of the largest delivery fleets in the region.
- Saudi Information Technology Company (SITE): A wholly owned subsidiary of the PIF, SITE was founded in May 2017 and works to provide digital and cyber services and solutions through national cadres to contribute to enriching local content, and securing sensitive national infrastructure and key information assets.
- Saudi Arabian Military Industries (SAMI): A wholly owned subsidiary of the PIF, SAMI was founded in May 2017 to support the achievement of the objectives of Saudi Vision 2030 by localizing military industries and transferring global technology and knowledge in the sector to the Kingdom.
- Saudi Real Estate Refinance Company (SRC): The company was founded in 2017 and is the first company to obtain a real estate refinance license. SRC contributed to the launch of this sector with the aim of developing the housing finance market in the Kingdom and revitalizing the real estate sector by enabling lenders to provide long-term housing financing solutions that help private residence ownership.
- National Energy Services Company (Tarshid): The company aims to develop the Kingdom's energy efficiency sector and diversify sources of income for the local economy. Tarshid plays a key role in the development of this sector by attracting international energy actors, attracting foreign investment, and contributing to the creation of high-skill jobs.
- Saudi Investment Recycling Company: The company, which is known by the abbreviation “SIRC”, works to contribute to the domestic product, provide job opportunities, and develop the national economy by developing the recycling sector in the Kingdom. The company has acquired "GEMS" – a leading company in the recycling of hazardous industrial waste. SIRC is building the first construction and demolition waste treatment plant in Riyadh, with a capacity of up to six hundred t per hour.
- The Helicopter Company (THC): The company is the first to provide helicopter services in the Kingdom to meet diverse needs. THC signed an agreement with Airbus to purchase ten "H125" helicopters, never before to fly in the Kingdom’s airspace, renowned for their capability to fly in hot and harsh climes.
- Saudi Entertainment Ventures (SEVEN): The company aims to develop the entertainment sector in the Kingdom. In partnership with (AMC), SEVEN obtained a cinema license, becoming the first company to hold such license in 2018, and opened the first movie theater in the Kingdom in the same year.
- "Jada" Fund of Funds: The company works to stimulate investment in private equity and venture capital funds, leading to sustainably financing the growth of SMEs in the Kingdom through these funds and increasing their contribution to GDP. Jada also invests about SAR1.140 billion riyals in fourteen investment funds.
- National Security Service Company (SAFE): The company aims to develop and advance private security detail services sector in the Kingdom, by providing a range of distinctive services that are in line with the best international standards and practices.
Future Investment Initiative Institute
Launched in 2017, the Future Investment Initiative Institute strengthens the PIF's presence globally and regionally, with over 550 speakers and more than 13 thousand attendees participating in its first three editions. The FII is one of the world's top three investment forums and has become an active and influential institution for global investment trends in various economic sectors.
Global companies
The PIF has expanded its investments worldwide by launching two global investment portfolios: International Strategic Investments (ISI) and International Diversified Pool (IDP). ISI has been identified as investments outside the Kingdom and the Middle East and North Africa region. The PIF has developed extensive relationships with various global investors, asset managers, investment banks, and global brokerage companies, becoming one of the world's largest investment entities.
By expanding its investments in North America, Europe, Asia, Latin America, and Africa, the PIF succeeded in acquiring substantial stakes in global companies, including:
- Uber: The fund invested about USD3.5 billion to buy a stake in this company. Uber is a global leader in transport and technology.
- Jio Platforms: One of India's leading telecommunications and digital services companies, the PIF invested about USD1.5 billion to acquire a 2.32 percent stake therein.
- Reliance Retail: The company is India's largest retailer and the PIF has invested about USD1.3 billion to acquire a 2 percent stake therein.
- Lucid Motors: The PIF's investment in the company began in 2018, which is a luxury electric vehicle manufacturer based in the United States.
- AccorInvest: The PIF invested directly in the French (hotel properties giant) in 2018. By joining forces with a consortium of investors, the PIF managed to acquire a 55 percent stake in AccorInvest.
- Babylon Health: Operating in the telemedicine sector, Babylon Health provides virtual services for medical consultations, screening services, and chronic disease management via the company's applications.
- Magic Leap Company: The PIF invested in the American company Magic Leap, a technology company specializing in virtual and augmented reality. The fund is one of the major investors in the company.
New PIF investments
On July 23, 2023, the PIF announced the establishment of the "al-Madinah Heritage Co." (MHC), which aims to play a key role in improving the quality of production of Saudi Ajwa dates in al-Madinah al-Munawwarah Region, and raising the productive capacity thereof. Ajwa dates are among the finest in the world, with high nutritional value and health benefits, as they are a rich source of a host of nutrients. Ajwa dates share a symbolic, religious, and heritage link with the Muslim world and with al-Madinah al-Munawwarah visitors in particular.
On July 20, 2023, the PIF launched 'Sawani Co.' to enable the growth of the camel milk products sector and contribute to the development of the local production system to reach a sustainable sector. The company aims to take the lead in camel milk products, contributing to supporting the agriculture and food sector and diversifying the local economy, in line with the Kingdom's Vision 2030. In partnership with the private sector, 'Sawani' will increase the production capacity of camel milk products, as the company will seek to raise the standards of the local production system by localizing knowhow and modern techniques in the food and agriculture sector.
On July 27, 2023, the PIF founded the Saudi Tourism Investment Co. 'Asfar', which aims to strengthen the capacities of the local tourism sector and invest in the establishment of tourism projects in various cities of the Kingdom. Asfar will also work to develop attractive destinations in the hospitality, leisure, retail, and food sectors, as well as invest in local tourism. The company will empower the private sector through joint investment, creation of opportunities for local contractors and suppliers, as well as SMEs, to contribute to the development of enterprises and tourism destinations.
On August 6, 2023, the PIF announced the establishment of 'SRJ' Sports Investments – a sports investment company aimed at supporting and enabling the growth of the sports sector in the Kingdom, the Middle East, and North Africa. 'SRJ' will invest in acquiring ownership rights to create new sporting events, as well as investing in commercial rights of sports tournaments and hosting global sporting events.
On August 7, 2023, the PIF launched 'Kayanee' – an integrated company for promoting and inspiring healthy lifestyles for women in the Kingdom. 'Kayanee', whose board is chaired by Her Royal Highness Princess Rima Bint Bandar Bint Sultan, will focus on the health and lifestyles of future generations through six key services: fitness, sportswear, personal and therapeutical care, nutrition and diagnosis, and healthy eating, as well as health education. 'Kayanee' aims to cater to all aspects pertaining to women in the provision of its various services, particularly with respect to mental, physical, and social health. The company seeks to reach more than 1 million beneficiaries in order to contribute to the development of a vibrant society, in line with the objectives of Kingdom's Vision 2030.
On August 10, 2023, the PIF founded the Saudi Utility Management Co. (FMTECH) – specialized in providing integrated services in the areas of facilities management, energy management, waste management, maintenance, cleaning services, security, and landscaping services. FMTECH aims to enhance developmental sustainability and efficiency of operations in the facilities management sector locally, by focusing on the management of facilities, thereby contributing to reducing costs and extending the life expectancy of facilities for various real estate development projects in the Kingdom.
On September 3, 2023, the PIF signed a stock purchase agreement to acquire 100 percent of Saudi Iron and Steel Company (HADEED) from Saudi Basic Industries Company (SABIC). According to the terms of the agreements, 'Hadeed' will simultaneously acquire 100 percent shares of Rajhi Steel from Mohammad Abdulaziz AlRajhi & Sons Investment Company (Rajhi Invest), in exchange for money and subscription to new shares in 'Hadeed'. The deals will support the PIF’s efforts in contributing to the development of local industry and meeting growing domestic demand for iron and steel products in the building, construction, vehicle, service facilities, renewable energy, transport, and logistics services sectors, in line with the objectives of Kingdom's Vision 2030.
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