On the road to economic leadership
The Public Investment Fund (PIF) has entered into a number of international investment ventures, including the Softbank Vision Fund and the Infrastructure Fund, valued at US$140 billion. When the recent investment initiative was launched in Riyadh, it was initially assumed to be a PIF proposal for new Kingdom-based projects, relying on national manpower, or sustainable overseas ventures.
However, it came as a surprise to all when Crown Prince Mohammed bin Salman, the Chairman of the PIF Board of Directors, announced NEOM – a dream project that constitutes the best destination for invention, individual inventors, and innovative companies. Backed by an investment value exceeding US$ 500 billion, the project is a clear roadmap for the future that would benefit the existing younger generation.
The PIF has become an organization that is at the forefront of efforts to diversify the sources of income, away from oil, through sustainable projects. Being a member of the Group of 20, its global standing goes beyond the prestige it holds as the second largest oil exporter in the world. With the spurt in PIF projects, the Kingdom has become an even bigger economic powerhouse.
Through its future-looking strategy, the PIF has proven to be an efficient contributor to the growth of the global economy and a preferred partner in international investment ventures. International reputation of any country does not revolve only around political consideration, although they are important. The economic dimension is what is important. Accordingly, any thrust towards enhancing Saudi Arabia’s economic position at the international level will see its global influence rising even further.
This is where the PIF will make its footprint on the international scene. Nine companies will take shape in the new promising sectors. They include the Saudi Military Industries Corporation, the Fund of Funds, and Saudi Company for Real Estate Refinance. Additionally, new projects have been announced, such as the Red Sea, Al-Qidaiyyah and Jeddah Downtown, besides NEOM.
More than 20,000 jobs are expected to be created for Saudis, while the value of assets will jump to US$ 1.5 billion within three years. Fifty billion dollars will be injected into local content.
The PIF is indeed a national wealth further strengthened by Prince Mohammed to assume economic leadership in the world.