The Public Investment Fund (PIF) has announced the launch of its five-year strategy, including its Vision Realisation Programme (VRP) 2021-2025. Following on from the success of its VRP 2018-2020, this strategy will make sure that PIF continues to grow as a global investment powerhouse and partner of choice for innovative businesses worldwide. It will also facilitate new industries and opportunities that will shape the future global economy while driving Saudi Arabia’s economic transformation.
Having fashioned 10 new sectors, launched more than 30 new companies, and created 331,000 jobs in Saudi Arabia over past four years, PIF plans to expand its assets under management to $1.07 trillion by the end of 2025 and contribute $320 billion to Saudi Arabia’s non-oil GDP.
The VRP forms a roadmap for PIF as it propels Saudi Arabia’s economic diversification and bolsters its position as a global investment powerhouse.
PIF looks to focus on funding new human futures by:
- Improving the quality of life domestically and internationally
- Driving environmental and economic sustainability
- Developing new sectors and creating new job opportunities
The five-year strategy was approved in the course of a recent PIF Board meeting chaired by His Royal Highness Mohammad bin Salman Al-Saud, Crown Prince, Deputy Prime Minister, Chairman of the Council of Economic and Development Affairs and Chairman of PIF.
His Royal Highness, the Chairman of PIF, believes the strategy will function as a roadmap for the Fund over the next five years as it helps to realise the Kingdom’s Vision 2030. Among the most significant initiatives, PIF will invest a minimum of $40 billion per annum in domestic projects and investments. It will also contribute $320 billion to non-oil GDP cumulatively through its portfolio companies, grow assets under management to over $1.07 trillion, and generate 1.8 million direct and indirect jobs by the end of 2025.
His Royal Highness added that PIF had made considerable progress over the past four years at a time of immense uncertainty in the global economy. The strategy comes as an extension to these achievements, looking to make the Fund the principal catalyst for Saudi Arabia’s economic transformation and diversification. His Royal Highness also stated that PIF would continue to invest in businesses and sectors that would play a part in driving the kingdom’s future, which in turn will drive world-pioneering funding of new human futures.
PIF will focus on 13 sectors as part of its core domestic strategy: Healthcare; Utilities & Renewables; Telecoms, Media & Technology; Food and Agriculture; Automotive; Transport & Logistics; Real Estate; Aerospace & Defence; Construction & Building Components and Services; Entertainment, Leisure & Sports; Financial Services; Metals & Mining; and Consumer Goods & Retail.
“Over the last four years, PIF has demonstrated its important role in contributing to the kingdom’s economy, in line with the ambitions of Vision 2030. Up to the end of 2020, we were able to triple assets under management to nearly $400 billion, create 10 new sectors and generate 331,000 direct and indirect jobs, His Excellency Yasir Al-Rumayyan, Governor of PIF, explained.
“And as part of our strategy, we will continue to drive the economic transformation of Saudi Arabia and enable the private sector. We also partner with innovative, transformative and disruptive companies around the world to consistently serve as an important catalyst for the development of the industries and opportunities of the future. Core to our strategy is our focus on funding new human futures by improving quality of life, driving environmental and economic sustainability, and developing new sectors and jobs.”
A crucial component of PIF’s success has been the strategic economic partnerships it has developed with many of the world’s foremost investors and businesses. The VRP 2021-2025 will enhance these partnerships, providing investors with access to unexploited investment opportunities, creating synergies and value for the global community. PIF will also continue to employ partnerships to drive knowledge transfer and localisation. This stratagem will produce direct benefits to the Saudi economy and people.