The Governor of the Public Investment Fund (PIF), Yasir bin Othman Al-Rumayyan, made a presentation today on the size of the remarkable growth and development of the Public Investment Fund, which has become a major engine in achieving the Kingdom's Vision 2030 and a catalyst for diversifying the local economy's resources away from oil.
This came during the periodic government communication press briefing held by PIF Governor, after the Board of Directors of the Public Investment Fund approved, Under the Chairmanship of His Royal Highness Prince Mohammed bin Salman bin Abdulaziz, Crown Prince, Deputy Prime Minister and Chairman of the Council of Economic Affairs and Development, the Fund's five-year strategy.
PIF Governor discussed the most prominent achievements of the Public Investment Fund during the past four years, the importance of the impact on the local economy, the features of the Fund’s strategy for the next five years 2021-2025 and the future goals of the fund.
The Governor said: “The Public Investment Fund chaired by His Royal Highness Prince Mohammed bin Salman bin Abdulaziz, the Crown Prince, renews commitment to continue working to support development and economic diversification efforts in the Kingdom of Saudi Arabia, and to achieve the goals of the Kingdom's Vision 2030 in building an integrated economy for generations". He pointed out that the Fund has witnessed an important shift in its development process, in order to be able to activate its strategic role in diversifying sources of income and non-oil revenues. The Fund has been able during the past four years to realize achievements in terms of its domestic and global investments, and today it has become a main pillar in achieving financial and developmental sustainability of the Saudi economy.
Al-Rumayyan indicated that the Fund's efforts are not limited to developing the Kingdom's wealth by investing in financially viable projects only, but also to new sectors through which the Fund aims to enhance the growth of promising sectors and achieve a sustainable economic and development impact.
He stated that the Fund has made great achievements during the period between 2018 and 2020. It contributed to achieving a clear impact at the local and global levels, such as raising the volume of assets by the end of 2020 to nearly SAR 1.5 trillion, and achieving a significant increase in the total shareholder return, which doubled from about 3% in the period between 2014 and 2016 to about 8% in the period between 2018 and 2019.
On the most prominent targets of the new strategy, Al-Rumayyan said that the Fund aspires to achieve its goals by the end of 2025 that support the achievement of the Kingdom's ambitions to diversify the economy and develop new sectors. This include raising the value of its assets under management to SAR 4 trillion, SAR 1 trillion cumulative investment in new projects locally and raising the percentage of investments in new sectors of the fund’s assets from 15% in 2020 to 21% in 2021. These targets will help the fund’s contribution to non-oil GDP by SAR 1.2 trillion cumulatively, creating 1.8 million jobs, in addition to contributing to local content to reach 60% of the Fund and its subsidiaries.
On the local priority sectors, Al-Rumayyan said that during the next five years the Fund aims to focus on 13 vital sectors such as food, agriculture, aviation, defense, entertainment, tourism, sports, minerals, mining, transportation, logistics, financial services and others.
He indicated that the selection of these sectors was evaluated based on the local and global perspective in terms of analyzing the attractiveness of the market, its size, expected growth and available opportunities, evaluating the sectors in which the Kingdom has a potential for development and a competitive advantage at the regional and global level, its impact on the economy, and prioritizing the sectors according to the Kingdom's Vision 2030 and its realization programs.
Yasir Al-Rumayyan pointed out that there are three main pillars developed by the fund, namely, an investment pillar aimed at launching and developing local sectors, developing local real estate projects, developing major projects, developing and diversifying the assets of the Public Investment Fund. The second pillar is value-realization that supports national development and enables the Kingdom's Vision 2030, developing aspects of cooperation between investment portfolios, and diversifying sources of financing and strengthening the financial position of the fund. The third is an institutional pillar to strengthen the institutional system of the Public Investment Fund.
Al-Rumayyan said that over the past three years, the PIF and its subsidiary companies invested more than SAR 170 billion, created 331,000 direct and indirect jobs, until the end of the third quarter of 2020. These investments covered 10 vital sectors such as real estate development, infrastructure, tourism, hospitality, entertainment, transportation, transportation, recycling, renewable energy and others.
He added that during the next five years, PIF will investment about SAR 1 trillion accumulatively in the local economy, which will create 1.8 million direct and indirect jobs by the end of 2025. These jobs would focus on vital sectors such as entertainment, tourism and sports, building and construction materials, and real estate services.
He pointed out that the importance of the fund investing in emerging international companies or in future industries would pave the way for the transfer of international expertise to the Kingdom of Saudi Arabia and many Saudi competencies benefited from it. The fund’s partnership with The Lucid Company contributed to the benefit of a number of Saudi graduates in gaining knowledge of the electric vehicle industry.
He said that the PIF will work to effectively direct investment in the long term, in order to serve the aspirations of the Fund and achieve the goals of the Kingdom's Vision 2030 in building an integrated economy for future generations.
Al-Rumayyan concluded that the PIF seeks to support private sector investment opportunities, and creating partnerships to contribute to the Kingdom's economic development. The Fund has developed important strategic partnerships with the private sector through major projects, infrastructure projects and others, to enhancing many important sectors such as housing, hospitality, tourism and entertainment.