Diversifying The Kingdom’s Revenue: PIF Established Five Regional Investments With A Value Of 90 Billion Riyals
The Kingdom of Saudi Arabia’s crown prince and Prime Minister, Mohammed bin Salman announced that the Public Investment Fund (PIF) has established five regional companies in Jordan, Bahrain, Sudan, Iraq, and Oman, after the launch of the Saudi Egyptian Investment Company back in August. The value of the targeted investments will reach SR90 billion ($24 billion) in opportunities across various sectors as reported by Arab News. Those sectors will include infrastructure, real estate development, mining, health care, financial services, food and agriculture, manufacturing, communications, and technology.
Their establishment was announced during the second day of the Future Investment Initiative’s (FII) sixth edition held in the nation’s capital, Riyadh, and was made in the presence of a group of investors, innovators, and leaders from around the world as The Siasat Daily reported. These recently founded companies will aid in the growth and reinforcement of PIF’s investment partnerships in the Middle East and North Africa by looking for fresh investment possibilities there according to The Siasat Daily. Additionally, in order to generate long-term sustainable revenues and support economic diversification as outlined in the Kingdom’s “Vision 2030,” Saudi Arabia intends to establish more strategic business alliances within the region.
What Is the Public Investment Fund of Saudi Arabia?
The PIF of Saudi Arabia was established back in 1971 and is the nation’s sovereign wealth fund. It provides financing for productive commercial projects that are strategically significant to the development of the Saudi Arabian economy.
Throughout the years, the PIF has supported numerous projects in important sectors of the Saudi Arabian economy, including petroleum refineries, petrochemical industries, pipelines and storage, transportation, energy, minerals, water desalination, and infrastructural facilities. In 2015, Saudi leaders began to take steps toward giving more authority to the PIF, in alignment with its Vision 2030 objective.